APPLE is looking into a cheaper subscription tier for its flagship streaming service – but it comes with a significant trade-off.
The streaming giant has taken steps in the United States and the United Kingdom as it ponders including an ad-supported plan on Apple TV+.
Competitors like Netflix, Disney+, and Amazon Prime Video have already taken the leap.
Ad-supported streaming has also been embraced by free streamers like Roku who made it their bread and butter.
The cost of a subscription is offset by advertisements that run before and during the content.
And while this means users can stream for free, or significantly cheaper, the constant interruptions can be a significant downside.
However, Apple is looking into all possible ways to attract customers as its streaming service struggles to turn a profit.
As reported by The Telegraph, the tech giant is rumored to have met with the UK’s Broadcaster’s Audience Research Board.
The company is reportedly looking into data collection techniques to monitor advertising results – signs that an ad-supported tier is on the way.
The tech giant held similar discussions with ratings organizations in the United States two years ago.
The most telling clue was the March hiring of Joseph Cady, a former advertising executive with a lengthy resume.
Before his departure, the 14-year NBCUniversal veteran served as Executive Vice President of Advanced Advertising and Partnerships.
Cady was only the latest in a series of advertising hires, all pointing to changes on the horizon.
The company brought on former Peacock and FanDuel employees and has been building up its ads team since last year.
There are other signs, too. Apple has included limited advertising in live sports events like last year’s Major League Soccer coverage.
The tech behemoth is simultaneously reducing its spending on original content after shelling out over $20 billion.
It remains unclear how much money Apple TV+ generates, but it is not estimated to offset the cost of licensing and production.
Apple heavily promoted extended free trials for the service at its inception in November 2019.
Customers buying an Apple device that year and the following were given at least one full year of Apple TV+ with their purchase.
Apple subsequently shortened the standard trial length to three months and began to bleed customers.
Free, ad-supported streaming television is a service that delivers programming similar to cable or traditional TV.
You can view FAST content at no cost, with the only condition being the commercials that appear before or during the content.
Depending on the service, you can watch titles on demand or stream prescheduled broadcasts. Some platforms also offer live TV.
FAST providers often have an expansive library of older shows and branded programming in addition to original titles.
Free, ad-supported channels air 24/7 and have scheduled commercial breaks built into their programming.
Content is normally organized by genre in addition to dedicated channels for specific titles or brands.
Users can now sign up for a seven-day free trial online. After a week, it will cost $9.99 per month, up from $6.99 per month.
Prices surged across the board in October, with the annual subscription cost jumping from $69 per year to $99 per year.
