Apple TV+ ad-supported tier may cost $4.99 per month

How Mac Daily News reported in August via our little bird, Apple appears to have plans to launch an ad-supported version of its Apple TV + video streaming platform, likely in 2023.

Apple TV +

Adam Levy for The Motley Fool:

Apple is exploring the potential for advertising within Apple TV +. The company held talks with several news outlets, according to a Digiday report. An ad-supported tier of Apple TV + could be launched in early 2023.

Apple would likely raise the prices of Apple TV + if and when it introduced advertising. It is one of the few streaming services that hasn’t raised their prices in recent years despite the improvement in the content catalog. It could keep its price of $ 4.99 per month for subscribers willing to watch ads and charge slightly more for those who want to avoid them.

Advertising would play well with Apple’s interest in sports rights. He currently has deals with Major League Baseball and Major League Soccer, and is in talks with the NFL. It currently shows ads during MLB games, but those ads are sold by the league, not Apple. But sports are accompanied by natural ad breaks and lots of live viewers, making them a great source of ad inventory for media agencies.

Advertising and a price hike would make Apple TV + more profitable (or less profitable), but the infrastructure and relationships it could build to bring advertising to Apple TV + could support a much broader business.

Apple’s Vice President of Advertising Todd Teresi … and his team are working on … a demand-side platform or DSP. A DSP would allow advertisers to automate ad purchases in Apple’s inventory, which includes advertisements in the App Store, news and stock apps. It could soon expand its advertising product to Maps as well.

MacDailyNews takes: Nobody seriously thought that Apple TV + would cost $ 4.99 a month forever, especially since it won major Emmys, Oscars, BAFTAs, etc. We are surprised that it has been kept this low for so long (but it was smart to do so while building content).

After all, after its launch on November 1, 2019, Apple TV + became the first all-original streaming service to launch worldwide, previewed more original hits, and received more accolades faster than any other streaming service in the world. his debut. To date, Apple Original films, documentaries and series have been honored with 280 wins and 1,165 award nominations and beyond, including rare consecutive Emmys for “Outstanding Comedy Series” for “Ted Lasso” and the Oscar for Best this year’s film for “CODA”.

An ad-supported tier of Apple TV + that stays at $ 4.99 per month with the ad-free tier costing, say, $ 7.99 per month (less when part of Apple One) makes sense.

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