Apple TV+ stands as the last major streaming service without an ad-supported tier, but recent developments suggest that this ad-free oasis may soon be no more. The tech giant has been aggressively bolstering its video advertising team, most recently hiring Joseph Cady, a 14-year veteran from NBCUniversal, according to a report from Business Insider.
Cady, who oversaw partnerships with tech giants like Amazon, Google, and TikTok during his tenure at NBCUniversal, joins a growing cohort of former TV executives leading Apple‘s advertising push. The company has poached talent from the likes of NBC, DirecTV, Peacock, and other legacy media companies in recent years, signaling a clear strategic shift towards embracing advertising on its streaming platform.
While Apple has remained mum on official plans to introduce an ad-supported tier for Apple TV+, the company has already dipped its toes into the advertising waters. In 2023, Apple built an advertising network around Major League Soccer, featuring global superstar Lionel Messi, and sold ad packages for a staggering $4 million. Should Apple decide to extend this model to its regular streaming offerings, it would follow the lead of its major competitors.
Netflix, Disney+, HBO Max (now rebranded as Max), and most recently, Amazon Prime Video, have all succumbed to the allure of ad-supported tiers, leaving Apple TV+ as the last holdout in the “ad-pocalypse” sweeping the streaming landscape. Initially, many assumed that tech giants like Amazon and Apple could afford to forgo advertising revenue, treating streaming as a value-added service. However, Amazon’s recent move has debunked this assumption, and analysts predict that Apple may soon follow suit.
In 2023, Barclays analyst Tim Long warned that Apple could lose billions of dollars on streaming content creation for years to come, according to a report from Barron’s. While the tech behemoth could initially absorb these losses, Long argued that introducing an ad tier could provide a much-needed boost to streaming revenue.
As tech companies tighten their belts after years of overzealous hiring and spending, streaming services are increasingly turning to price hikes and ad-supported tiers to bolster their bottom lines. Apple TV+ itself increased its monthly subscription fee from $6.99 to $9.99 in October, and an ad-supported tier could offer a more affordable alternative to price-conscious consumers.
The golden era of ad-free streaming may be drawing to a close. As subscription models prove unsustainable in the long run, Netflix, Hulu, Max, and others are raising prices and embracing advertising. The original vision of streaming as a cable-cutting alternative is fading, and Apple TV+’s potential introduction of ads seems increasingly inevitable, marking the end of an era for cord-cutters seeking refuge from commercial interruptions.
While nothing is set in stone, all signs point to Apple TV+ joining the ad-supported streaming bandwagon, leaving viewers to ponder whether the once-promised ad-free streaming utopia was nothing more than a fleeting mirage.
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