Streaming services like Netflix and Amazon’s Prime Video have come under fire by hiking prices and introducing ad-supported subscription tiers to soften the blow and it looks like Apple could soon be doing the same.
According to a new report from The Telegraph, Apple executives have met with the UK ratings body Barb to “discuss options for tracking advertising.” This would imply that Apple is looking to introduce an ad-supported tier similar to its competitors in the near future.
Netflix, Disney, and Amazon already work with Barb and have introduced cheaper subscription tiers with ads before content and sometimes during content to make up for the cheaper price. Apple, however, has increased the cost of Apple TV Plus over the years from $4.99 to $9.99 without a lower-end ad tier as of yet.
Introducing ads to Apple TV Plus could allow for a cheaper subscription closer to the original $4.99 a month cost which would allow those who don’t mind watching an ad or two to save on the subscription fee.
With Severance season 2 on the horizon, introducing a cheaper option for those who want to watch one of the best shows on Apple TV Plus at a lower price could prove incredibly lucrative for the company.
It’s an ad-supported world and we’re just living in it
It’s looking all but confirmed that Apple TV Plus will introduce an ad-supported subscription tier and while there was uproar when other streaming platforms adopted the strategy it's becoming the industry norm.
Ad-supported tiers allow streaming services to increase the monthly cost of ad-free tiers without alienating customers. It’s a shoddy tactic in my opinion but if this is the route we’re going down then more options with cheaper prices at least give the consumer the choice.
However, introducing lower price tiers opens the door for other differences between subscriptions, not just a cheaper price because of the inclusion of ads. For example, Netflix’s lower-priced ad-supported streaming option limits the amount of devices you can watch on and the quality of the stream compared to the most expensive option. Apple could do something similar, removing the fantastic perk of Family Sharing that makes Apple TV Plus the best streaming deal on the market. While there is no indication that this would be the case, it feels like the inevitable destination considering the overall landscape of the streaming service world.
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