Apple TV+ could get ads in the near future

Apple may be edging closer towards offering an ad-supported tier of Apple TV+, a Telegraph report suggests. Executives have allegedly been talking to the UK’s Broadcasters Audience Research Board, or Barb, about the technology needed to track advertising. Barb is best known for providing viewing stats for the UK’s four major broadcast networks — namely BBC, ITV, Channel 4, and Sky — and already provides Apple with similar streaming data.

Apple has so far only inserted ads into live sports events such as Major League Soccer. But the company started talking to ad networks in 2022, according to AppleInsider, and is thought to be working on offsetting its costs, having spent over $20 billion on programming so far to catch up with rivals like Netflix and Amazon. For a time Apple had a reputation as being one of the most spend-happy content producers, despite being a relative newcomer to movies and TV shows.

There’s no sign of when an ad-based Apple TV+ plan might launch, or even any guarantee that Apple will start inserting ads into shows and movies. The earliest an announcement might happen is likely to be September, when Apple holds its usual fall press event focused on iPhones. New iPhone buyers could be more enticed to keep Apple TV+ after their initial trial expires.

Why would Apple start showing ads now?

The streaming industry as a whole has abandoned its early approach, which relied on (relatively) low fees to generate a large subscriber base. The cost of high-budget TV shows has made that unsustainable, resulting in price hikes in some cases, and the adoption of ad-supported tiers in others. Even Netflix and Disney+ have hopped on the ad train, despite being extremely popular “premium” services.

Apple has been able to hold out not just because of its billions of dollars in cash reserves, but because Apple TV+ serves as a way of spicing up its ecosystem. Someone buying a new Apple device is often eligible for three free months of the service, and it’s a highlight of the company’s Apple One omni-subscription.