Apple Moves Forward with Ad-Supported Plan for Apple TV+, Offering Cheaper Subscription Options

Apple's streaming video business, Apple TV+, has struggled to gain traction in recent years. Despite releasing several original shows, viewership numbers have been underwhelming, and subscription growth has been slow. To address this, Apple is making two significant changes: reducing investments in its streaming video business and developing video ads to lower subscription prices and attract more users.

Initially, Apple TV+ was priced at $4.99/month, but it has since increased to $6.99/month and $9.99/month. Compared to Netflix, which offers a wider range of content, Apple TV+ is seen as overpriced. With no plans to abandon Apple TV+, the company is shifting its strategy.

The trend of adding ads to streaming video services is already underway, with Netflix and Disney+ introducing ad-supported subscription plans. These plans are cheaper but come with restrictions and require users to watch ads. However, as long as the price is low enough, many users are willing to subscribe.

Amazon Prime Video, another major streaming service, has also introduced ads. Users who don't want to watch ads can pay an additional $2.99/month, a feature that was previously included in Amazon Prime for free. By adding ads, Amazon can generate more revenue.

Apple is now following suit, abandoning its ad-free strategy to introduce an ad-supported subscription plan. By watching ads, users can help Apple generate more revenue, allowing the company to offer lower-priced subscription options and attract more users to Apple TV+.

However, it's unclear when Apple will launch its ad-supported tier, as rumors have been circulating for some time. The company is currently hiring experienced ad executives, indicating that the introduction of ad-supported subscriptions is imminent.