Despite the growing trend of ad-supported streaming services, Apple remains committed to its ad-free model. In a recent interview with Screen International, Apple executive Eddy Cue confirmed that the company currently has no plans to introduce an ad-supported tier for Apple TV. However, Cue left the door open for future changes, stating, “I don’t want to say no forever, but there are no plans. If we can stay aggressive with our pricing, it’s better for consumers not to get interrupted with ads.”
This stance comes as Apple recently raised the price of its Apple TV subscription from $9.99 to $12.99 in August. Since its launch in 2019, the subscription cost has surged by 260%, a move largely driven by Apple’s heavy investment in expanding its content library.
The Ad-Supported Trend and Apple’s Position
Netflix once shared Apple’s reluctance to embrace ads, but shifting economic realities led the streaming giant to launch an ad-supported tier in November 2022. The move proved popular, especially as the price of Netflix’s ad-free plan climbed to $17.99 per month. Netflix co-CEO Greg Peters recently revealed that in-show advertising revenue is growing rapidly, with projections for ad revenue to double in 2025.
Given these trends, it’s possible Apple could eventually reconsider its position. For now, though, the company is betting that a premium, ad-free experience will continue to attract and retain subscribers.
Apple TV’s Subscriber Growth
Apple is notoriously tight-lipped about its subscriber numbers, but recent comments from Eddy Cue suggest strong growth. When asked about specific figures, Cue noted, “We haven’t announced our subscribers. I can tell you we’re growing faster, we have more viewers, and they have more viewing hours in this past year than we’ve had at any time.”
Cue also hinted that Apple TV’s subscriber base is “significantly more” than the rumored 45 million. This is notable considering Hulu, which launched eight years before Apple TV, currently has an estimated 55 million subscribers.
The Power of Original Programming
Apple’s strategy of focusing on original, high-quality content has paid off. Rather than filling its library with licensed third-party shows, Apple has prioritized quality over quantity. This approach has earned Apple TV dozens of prestigious awards, including 10 Primetime Emmy Awards last year. Breakout hits like “Severance” and “Ted Lasso,” as well as the Academy Award-winning film “CODA,” have helped solidify Apple TV’s reputation for excellence.
One of the most anticipated new series is “Pluribus,” a sci-fi thriller from “Breaking Bad” creator Vince Gilligan. Starring Rhea Seehorn, known for her role in “Better Call Saul,” the series debuts on November 7 and has already received strong reviews. Apple’s confidence in Gilligan’s project is evident, as the series has already been greenlit for two seasons. If “Pluribus” follows the success of Gilligan’s previous work, Apple TV’s subscriber base could see even greater growth.
