A DigiDay report claims Apple has held conversations with media agency and network executives about possibly selling ad time on its Apple TV+ streaming service. This means an ad-supported tier could eventually come to the streaming service, possibly as soon as next year.
DigiDay says Apple’s advertising chief Todd Teresi has conducted meetings with network executives to sell advertising space on the streaming service, with more discussions reportedly set for later in 2022.
An anonymous source tells the publication that Apple has not asked one agency’s network to put aside client dollars in the fourth quarter, suggesting the ad time will not be available until 2023.
Apple is said to be aiming to triple its ad revenue from $4 billion per year to double-digit figures by expanding its advertising to more apps and services. Apple TV+ would make an attractive option for growing ad revenue.
At the time of this article, Apple sells ad spots in its News and Stock apps, and app ads in the App Store. While Apple already makes ad revenue from commercials on its MLB Friday Night Baseball streams, those ads are actually sold by Major League Baseball. More ad revenue will result from Apple’s being the exclusive home of Major League Soccer for the next 10 years.
It isn’t yet clear how Apple will handle ads on its other streaming content, but it could possibly adopt a two-tier subscription system, offering both ad-supported and ad-free subscription plans, offering a cheaper rate for those viewers willing to subject themselves to ads.