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Unlike most major streamers, Apple TV+ is still prioritizing original content and saying no to ads, at least for now.
Apple TV executives told the British magazine Screen International this month that the streaming service isn’t likely to launch an ad-supported subscription plan anytime soon.
“I don’t want to say no forever, but there are no plans. If we can stay aggressive with our pricing, it’s better for consumers not to get interrupted with ads,” Eddy Cue, senior vice president of Apple Services, told the magazine when asked about a cheaper ad tier.
That stance puts Apple TV+ in stark contrast to its rivals, nearly all of which have successfully turned to ads to boost profits. Disney Plus, Warner Bros. Discovery’s HBO Max, and Paramount Plus all offer ad-supported tiers. Even industry leader Netflix has a $7.99 ad plan, while its premium ad-free tier starts at $17.99. Leaving Apple TV as one of the few major streamers without a more budget-friendly, ad-supported option.
Instead, Apple TV seems to be betting that “aggressive pricing” will help its business. In August, the service raised its monthly subscription fee to $12.992, up 30% (or $3) from the previous $9.99. The last hike came in 2023, when Apple bumped the price from $6.99 to $9.99. Since launching in 2019 at $4.99 per month, Apple TV has jumped 160% in price in just six years.
Price hikes have become standard across the streaming industry, but Apple needs all the help it can get. The Information reported that Apple TV is losing more than $1 billion a year, with spending on high-end shows far outpacing the revenue it brings in. Still, the service has earned plenty of critical acclaim and audience attention. It’s home to hits like Severance, which racked up the most Emmy nominations (27) this year.
And Apple TV’s creative momentum isn’t slowing. Breaking Bad creator Vince Gilligan’s highly anticipated new series Pluribus premiered on the service on November 7 and has received a lot of buzz.
Executives say original programming like Pluribus is central to Apple’s strategy, again setting it apart from competitors who rely on acquisitions and partnerships to bulk up their libraries.
“We’re building an all-original service; we’re not building on the back of pre-existing IP or library,” said Jamie Erlicht, one of Apple TV’s chief content officers.
When asked whether Apple might buy Warner Bros. Discovery (which is considering bids), A24, or Disney, Cue said: “We do very small acquisitions in general, not related to Apple TV, so I don’t see that happening because we like what we’re doing.”
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Source: Gizmodo