Apple in Talks to Bring Ads to Apple TV+

Apple is working on the introduction of advertisements on Apple TV+ in the United Kingdom, according to The Telegraph.

Apple has apparently been in discussions with the UK's Broadcaster's Audience Research Board (BARB) to explore the necessary data collection techniques for monitoring advertising results. Currently, BARB provides viewing statistics for major UK networks including the BBC, ITV, Channel 4, and Sky, as well as ‌Apple TV‌+ programming. These new discussions suggest that Apple is preparing to implement an ad-supported tier on its streaming service, similar to moves made by competitors such as Netflix, Disney+, and Amazon Prime Video.

While BARB already monitors viewing time for ‌Apple TV‌+ content, additional techniques are required to track advertising metrics accurately. This data is vital for advertisers to assess the reach and impact of their campaigns on the platform. In addition to the UK, Apple has also reportedly held similar discussions with ratings organizations in the United States.

Apple has already included limited advertising in its live sports events, such as last year's Major League Soccer coverage, where ads were incorporated even for Season Pass holders. It is also notable that in March Apple hired Joseph Cady, a former advertising executive from NBCUniversal, to bolster its video advertising team.

Competitors like Netflix and Disney+ have successfully launched lower-cost, ad-supported tiers, which have helped them attract additional subscribers and increase revenue. For instance, Netflix recently reported record revenues, partly due to a 34% increase in subscribers to its ad-supported tier. The push towards an ad-supported tier comes at a time when Apple is reportedly reducing its spending on Apple TV+ content after investing over $20 billion in original programming.