Apple has no interest in introducing ads to its TV streaming service, Apple TV+. The use of ads has become a major talking point in the streaming world with many companies trying to decide whether to employ an AVOD or SVOD approach or a mixture of the two. For now, Apple seems happy to stick with the no ads strategy.
Apple launched its TV service on November 1, 2019 and while the company has now provided its latest quarterly results, the iPhone-maker did not provide any details on just how many people are using the service. Instead, Apple said the service had gotten off to a “rousing” start. While there’s no official Apple TV+ subscriber numbers to digest, recent estimates have suggested Apple TV+ is doing extremely well and possibly even better than Disney+.
As part of the company’s earnings call, Apple CEO, Time Cook, confirmed the company does not plan to add any ads to the TV service anytime soon. In explaining this, Cook stated that although the company is not necessarily against the use of ads, it feels customers want a product free of ads and therefore will continue to offer that for now.
As part of the same earnings release, Apple confirmed its services department generated $12.7 billion during the quarter. This is the section that Apple TV+ now falls under and the latest figure represented an increase of roughly $2 billion compared to the same quarter in 2018.
No ads a major selling point
Netflix recently announced its latest quarterly earnings followed by its own earnings call. As Apple did today, Netflix also took the opportunity to make it clear that ads were not a part of its immediate future. Netflix has come under increased pressure with some predicting the popular streaming service will need to introduce ads to keep up with the increased competition it is now facing – including from Apple.
However, Netflix CEO Reed Hastings, fundamentally disagreed suggesting making money from ads is not as easy as some suggest and that it would require heavy time and financial investment from Netflix. Adding to this, Hastings also raised the point that it’s a good thing that Netflix is less dependent on the typical user data generated from ads, with the company preferring to provide a safer environment to its users. Apple’s Cook also raised a similar point today noting that if ads did come, they would have to be within the context of privacy.
In the meantime, Apple TV+ subscribers can continue to go about their streaming business safe in the knowledge that ads are unlikely to hit the service anytime soon.