Apple TV+ platform has spent billions in making high-quality content that has won plaudits at the esteemed awards. But the company is struggling to justify its investment in the movies and that is why we might soon see ads in the Apple TV+ paid platform. Reports this week claim Apple is looking to make this change for Apple TV+ subscribers in the UK and most likely expand to other markets if the strategy works out in its favour.
Ads And Apple, Really?
Apple has generally stayed clear of ads on its products but things have changed recently. We get ads on the App Store in the form of recommended apps, but Apple TV+ is already a paid platform and showing ads between shows or movies might not sit down well with the consumers at the current prices.
Apple has reportedly spent $20 billion and more on making content for the platform and it seems the returns on its investment have been negligible which could be forcing the company to eye alternate monetisation models. It is even lining up the Android app for the platform which could help increase its reach across the globe.
All these reports hint at an ad-tier plan of Apple TV+ that will look to appeal to people who don’t want to pay the big bucks for the Apple TV premium content and are happy to see some ads if the price is down. Netflix has already offered a similar plan for its viewers in the US for now, while Disney+ has been mulling an ad-tier model itself.
Apple will surely benefit from having big brands sign up for space on the platform, which definitely needs a user base jumpstart to increase its overall value in the market. But the company will face competition from traditional advertisers and TV channels that have relied on ads revenue for decades.
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