As rival streamers introduce ad-supported tiers, is Apple TV Plus missing a trick?

[iMore.com]

Disney Plus now has an ad supported tier in all its major territories, making Apple TV Plus the only major streamer that doesn't.

As rival streamers introduce ad-supported tiers, is Apple TV Plus missing a trick? : Read more

 

[Stephen Townsley]

The short answer is no. I think if you pay for TV then you are paying to be ad free.

The reason why there is an ad supported tier is that it makes more money than subscriber supported. If a series is watched by 1 person of 100 people the subscription is the same. If you serve 100 ads then then you get paid for every single ad.

However, streaming is getting expensive. People subscribe to see a couple of shows for a couple of months and then cancel. The increasing cost means increasing churn. Apple is selling the Apple One subscription. Music, extra storage, and TV. The TV element has a small back catalogue. It isn't paying for rolling blockbusters like Marvel, Star Wars and the like. It's building its own IP.

I think if it wants the steady monthly income and wants to build an ecosystem of services then quality and not ads is a better option.

The other streamers are running huge losses. Their business model is for some future date having a profit. Apple has money in the bank. It doesn't have to go in the same direction and shouldn't. In the US it's now doing MLS. it may do more sports. Why not. Live events work well.

 

[Wotchered]

If Apple can afford it, it should stay ad free, and buy good content. That should build up a good following of people who know they don’t want to be lied to about things they don’t want, continuously !

 

[Just_Me_D]

The short answer is no. I think if you pay for TV then you are paying to be ad free.

The reason why there is an ad supported tier is that it makes more money than subscriber supported. If a series is watched by 1 person of 100 people the subscription is the same. If you serve 100 ads then then you get paid for every single ad.

However, streaming is getting expensive. People subscribe to see a couple of shows for a couple of months and then cancel. The increasing cost means increasing churn. Apple is selling the Apple One subscription. Music, extra storage, and TV. The TV element has a small back catalogue. It isn't paying for rolling blockbusters like Marvel, Star Wars and the like. It's building its own IP.

I think if it wants the steady monthly income and wants to build an ecosystem of services then quality and not ads is a better option.

The other streamers are running huge losses. Their business model is for some future date having a profit. Apple has money in the bank. It doesn't have to go in the same direction and shouldn't. In the US it's now doing MLS. it may do more sports. Why not. Live events work well.

Outstanding response sir!