Apple would have hired someone to develop the advertising business on its video streaming service. This probably relates to ads shown during sporting events.
But it also raises the possibility that Apple TV+ will one day get an ad-supported tier. There have been hints of this in the past.
More video ads mean more revenue for Apple
Movies and series are streamed on Apple TV+ ad-free. But a new hire is a clear indication that the Mac maker intends to increase what it earns from ads.
“Apple has hired Lauren Fry, head of television and digital video advertising, to help build a video advertising business for its Apple TV+ streaming service,” Information reported Friday.
It doesn’t come out of nowhere. The company reportedly spoke to media agencies about add ads to your shows in the fall of 2022.
Global video advertising should total approximately $210 billion in 2023, and it looks like Apple wants to partake in some of that huge revenue stream.
Ads may appear everywhere on Apple TV+
As noted, an Apple TV+ subscriber can enjoy a breakout show Ted Lasso or new hit comedy Contraction and never watch a single advertisement.
But those who watch Friday night baseball on AppleTV+ see lots of advertisements. In the United States, anyway. Those outside the United States get message waiting please.
It’s possible that Apple hired Fry to line up more ads for the streaming service’s sports content. It’s become more urgent now that Apple TV+ also offers all Major League Soccer matches for the 2023 season.
But the company could also think bigger. Hiring Fry could be part of building an ad-supported tier for Apple TV+. If this happens, viewers will get a discount on their subscription fees in exchange for commercial breaks.
Cupertino might consider following in the footsteps of Disney+, which recently increased the cost of its ad-free option, while adding a new ad-supported tier to what the ad-free version cost.