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Highlights:
Apple will bring ad-supported plans on Apple TV+ like competitors such as Netflix
Apple’s discussion with BARB aims to enhance ad performance tracking.
Apple has experimented with advertising during the Major League Soccer and has recently strengthened its ad team with a former NBCUniversal executive, Joseph Cady.
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Apple is looking to introduce advertisements on its streaming service, Apple TV+ for its UK streamers. According to The Telegraph, the tech company is in talks with the Broadcaster's Audience Research Board (BARB) to develop the data collection methods needed to track advertising performance on its platform. Currently, BARB monitors viewing stats for major UK networks and Apple TV+ content, but enhanced techniques are required to accurately gauge advertising impact.
Apple follows the steps of streaming giants like Netflix, Disney+, and Amazon Prime Video have already embraced ad-supported tiers.
The streaming industry has been shifting towards ad-supported models. For instance, in its recent financial quarter, Netflix saw a substantial revenue boost amounting to $9.6 billion. This performance is attributed to a 34% increase in subscribers to its advertising-supported subscription plan.
Apple's focus on expanding its ad division, including hiring former NBCUniversal advertising executive Joseph Cady. However, the company faces challenges, including slower subscriber growth in the UK compared to competitors. Previously in first position in the first quarter, Apple TV+ now sits in fourth place for new UK subscriber acquisitions in the second quarter, capturing only 12% of the market share.
Also, Apple has been heavily investing in creating original films and TV shows, spending over $20 billion. However, it's now starting to cut back on these expenses, indicating financial pressure or a shift in strategy.
07/31/2024
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