Eddy Cue confirms Apple TV has 'no plans' for an ad-supported tier

In the sprawling, hyper-competitive world of streaming, nearly every major player has bent the knee to advertising. Netflix, once the standard-bearer for ad-free binging, now boasts over 190 million monthly viewers on its ad-supported plan. Disney+ followed suit, luring in millions of subscribers willing to watch a few commercials in exchange for a lower monthly bill.

And then there’s Apple.

In a move that’s become characteristic of the Cupertino giant, Apple is holding the line. According to the company’s long-time head of services, Eddy Cue, Apple TV has “no plans” to launch an ad-supported streaming tier.

Speaking in a recent interview with Screen International, Cue was unequivocal about the company’s current strategy. Asked if there were plans for a tier with ads, he was direct.

“Nothing at this time,” Cue said. “Again, I don’t want to say no forever, but there are no plans. If we can stay aggressive with our pricing, it’s better for consumers not to get interrupted with ads.“

That “if” is doing a lot of heavy lifting.

The price of prestige

Cue’s comment lands at a moment of significant tension for the service. For subscribers, the phrase “aggressive with our pricing” might ring hollow. Apple TV (which recently rebranded, dropping the “+” from its name) has been decidedly aggressive, but in the opposite direction.

When the service launched in 2019, it was a budget-friendly disruptor at just $4.99 per month. It was a small, curated library of high-budget shows, and its low price reflected that.

The story since then has been one of steady escalation:

2019: $4.99/month
2022: $6.99/month
2023: $9.99/month
2025: $12.99/month

In roughly six years, the price has skyrocketed by over 160%. This is precisely why the ad-tier question keeps coming up. As the price climbs, Apple TV moves out of the “impulse buy” category and into direct, expensive competition with the likes of Netflix’s premium, ad-free plans.

For consumers, the math has become complicated. Netflix and Disney+ raised their prices, too, but they also offered an escape hatch. Don’t want to pay $23 for Netflix Premium? Fine. Pay $7 and watch some ads. This lower-priced tier has been a massive success for them, driving new subscriber growth in a market that was thought to be saturated.

Apple is offering no such escape. You either pay the full $12.99, or you don’t get Severance and Slow Horses.

Why Apple is holding out (for now)

So why is Apple being so stubborn? The answer lies in the fundamental difference between Apple and every other streaming company.

1. Apple isn’t a streaming company: Netflix, Disney, and Warner Bros. Discovery must make streaming profitable on their own. It’s their core business. For Apple, the services division—which is on track to clear $100 billion in revenue—is an engine, but the car it powers is hardware.

Apple TV isn’t just a revenue stream; it’s a feature. It’s a reason to stay locked into the Apple ecosystem. It’s a value-add that helps sell $1,000 iPhones, $1,700 MacBooks, and $550 AirPods. Apple can afford to run its streaming service differently because it’s not the main event; it’s part of a much larger, more profitable show.

2. The privacy fortress: This is perhaps the biggest reason. Apple has spent the last decade building its brand on the bedrock of user privacy. Its entire marketing apparatus is built on the idea that “what happens on your iPhone, stays on your iPhone.”

An ad-supported business is a data-tracking business. To be effective, ad tiers need to know who you are, where you live, what you watch, and what you buy. This is philosophically at odds with Apple’s core identity. Launching an ad-supported tier would require Apple to either build an uncharacteristically “dumb” ad platform (which advertisers wouldn’t pay much for) or compromise on the very privacy principles it touts on billboards.

3. The “boutique” strategy: Apple is sticking to its “quality over quantity” mantra. It’s not a content firehose. It’s a boutique, curated library of prestige television. While competitors are licensing thousands of back-catalog shows, Apple is methodically building a library of high-end originals. They are betting that an audience exists that is willing to pay a premium for a premium, ad-free experience.

The new math: bundles as a pressure valve

Instead of ads, Apple is using a different strategy to relieve the pricing pressure: the bundle.

In October 2025, Apple and NBCUniversal launched a new streaming bundle that packages Apple TV and Peacock together, starting at $14.99 a month. This move is telling. It’s a way for Apple to offer more perceived value—tacking on Peacock’s deep library of content and live sports—for only a couple of dollars more than its own standalone service.

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It’s a classic aggregator move. If you can’t beat ’em, bundle ’em.

Cue’s “at this time” is the all-important caveat. He has left the door open. Apple is holding the line for now, betting that its premium brand and privacy-first gospel are worth $13 a month. But as every competitor embraces ads and every household budget gets tighter, that line becomes harder and harder to hold.