Apple TV Shakeup: No Current Plans for Ad-Supported Options, Eddy Cue Open to Future Changes

Following in the footsteps of Netflix, Disney+, and Prime Video, one might wonder if Apple TV¹ is poised to introduce an ad-supported subscription option. The current answer, however, is a definitive no. “At this time, we have no plans in that direction,” Eddy Cue shared with Screen International, though he leaves the possibility slightly open for the future.

“I wouldn’t want to rule it out forever, but as of now, we have nothing scheduled. If we can keep our pricing competitive, it’s preferable for our customers to enjoy their viewing without ad interruptions,” Cue further elaborated.

As the growth in new subscribers slows down, video streaming services have increasingly turned to ad-supported models as a financially advantageous strategy. These models not only allow for lower entry prices but also boost revenue through advertising. In France, for instance, over half of the new Netflix subscribers now choose the ad-included plan, which boasts nearly 10 million users in total.

With the recent price hike of the Apple TV subscription to $12.99/month in North America (€9.99/month in France), Eddy Cue still considers it a “very aggressive” price point. By comparison, Netflix’s standard no-ad plan is $17.99/month. Gradually increasing its prices, Apple might leave itself room to eventually introduce a more budget-friendly, ad-supported option.

Regarding the subscriber count for Apple TV, estimated by some to be between 40 and 45 million, Cue consistently avoids delving into specifics. “What I can tell you is that we are growing faster: we have more viewers, and their viewing time has been greater this year than ever before,” he stated to Screen International. In another interview, however, he had mentioned surpassing 45 million subscribers.

Building Rather Than Buying

Regardless, the Apple veteran acknowledges that developing this service was more challenging than anticipated: “It took longer than I expected and was harder than I imagined. I didn’t foresee being paralyzed by the Covid pandemic without a catalog, nor did I anticipate the strikes that halted us for nine months. Over time, I’ve learned that nothing great comes easy: it requires a tremendous amount of work.” He also dismissed rumors that the company had made significant budget cuts.

After a challenging start, Cue believes that Apple TV has now hit its stride, fueled by repeated successes, whether it’s awards won by its series or the box office hit of the movie F1.

Still, wouldn’t it be simpler to just buy an existing catalog to quickly expand the offerings? This question becomes even more pressing amid rumors of Apple’s interest in Warner’s catalog. “Same answer as before [not planned], but you have to look at Apple from a historical perspective. We don’t make many large acquisitions. Generally, we focus on smaller acquisitions unrelated to Apple TV. So, I don’t see that happening, as we are satisfied with our strategy. We build, and we will continue to build on what we have already established,” concluded Cue.