When it comes to ads finally arriving on Apple TV+, the question isn’t so much if, but when—and, more importantly, for how much.
Of course, there aren’t any ads on Apple TV+ yet, and Apple has yet to confirm any of the rumors about ads coming to Apple TV+.
But with each of Apple’s biggest streaming competitors rolling out their own ad-supported tiers, the arrival of ads on Apple TV+ is starting to feel inevitable, and it’s not like there’s been an absence of signs.
Most recently, The Telegraph reported that Apple has “held talks” with Barb, a joint venture between the U.K.’s largest TV networks that’s charged with tracking TV viewing habits, about “potential options for tracking adverts on Apple TV+.”
There have been other signs as well, including chatter that Apple has met with and hired multiple advertising executives to help shepherd ads onto Apple TV+.
So, if Apple does launch a “with ads” tier on Apple TV+, it would surely be cheaper than the existing Apple TV+ plan, which currently costs $9.99 a month—right?
Well, not necessarily. Just look at Amazon.
Early this year, Amazon began serving up ads on Amazon Prime Video—but instead of spinning up a cheaper ad-supported plan, Amazon launched a pricier ad-free plan, and told existing Prime Video subscribers they would have to upgrade to avoid commercial breaks.
That move provoked a furious reaction from many Prime Video subscribers, who accused Amazon of the old bait-and-switch, particularly for those who coughed up for an annual plan before Amazon revealed its Prime Video ad strategy. (There’s even a pending class-action lawsuit over the issue.)
Would Apple follow suit by putting ads on the current Apple TV+ plan and unveiling a new, pricier ad-free tier?
Well, anything’s possible—and indeed, it’s worth noting that Apple hasn’t raised Apple TV+ prices since last October, when the standalone price of Apple’s streaming service rose to its current $9.99/month level, up from $6.99 a month.
It’s easy to imagine a scenario where Apple announces a new ad-free Apple TV+ plan that costs, say, $12.99 a month, meaning existing Apple TV+ subscribers would need to pay $3-a-month extra to nix the ads. That’s pretty much the same choice Amazon gave to Prime Video subscribers earlier this year.
Of course, Apple could go the other way instead and unleash a cheaper ad-supported plan—maybe $6.99 a month, the same as what Netflix charges for its “standard with ads” tier—while leaving its currently $9.99/month ad-free plan alone.
Or, how about this: Apple raises the price of the existing Apple TV+ plan, then debuts a new ad-supported plan at the old ad-free rate? (Sound familiar?)
Like I said at the top, it seems pretty clear that ads are coming to Apple TV+. But will the rumored ad-supported plan cost less than the current $9.99/month rate of Apple TV+? I wouldn’t bet on it.
