Screen International, Apple executive Eddy Cue mentioned that the company presently has no intentions of launching an ad-supported tier on Apple TV. Cue did, however, allow for the possibility of Apple changing its mind in the future. “I don’t want to say no forever,” Cue stated, “but there are no plans. If we can remain aggressive with our pricing, it’s more beneficial for consumers not to be disrupted by ads.” Notably, Apple raised the price of the Apple TV subscription from $9.99 to $12.99 earlier in August. Overall, an Apple TV subscription has surged in price by an astounding 260% since its debut in 2019 — a hike primarily linked to the significant funds Apple is allocating to support its expanding content library.
It’s important to mention that Netflix had a comparable viewpoint on ads a few years back. However, as time passed, the economic situation shifted, leading the streaming giant to understand that it required a strategy to draw in and retain customers who were unwilling to pay more for an uninterrupted viewing experience. Likewise, it wouldn’t be surprising if Apple reaches a similar conclusion in a few years down the line. Netflix launched an ad-supported tier in November 2022, which has turned out to be extremely popular — especially now that the base price for an ad-free subscription has escalated to $17.99 per month. Earlier this year, Netflix co-CEO Greg Peters noted that revenue from in-show advertising is increasing, with Netflix’s ad revenue expected to double by 2025.
