Despite the proliferation of ad-supported streaming, Apple has no plans to follow suit. During a recent interview with Screen International, Apple executive Eddy Cue said that the company currently has no plans to introduce an ad-supported tier on Apple TV. Cue, however, left the door open for Apple to reverse course in the future. “I don’t want to say no forever,” Cue said, “but there are no plans. If we can stay aggressive with our pricing, it’s better for consumers not to get interrupted with ads.” Incidentally, Apple increased the cost of the Apple TV subscription from $9.99 to $12.99 earlier in August. All told, an Apple TV subscription has shot up in price by a whopping 260% since its launch in 2019 — an increase largely attributable to the vast sums of cash Apple is using to fund its ever-growing content library.
It’s worth noting that Netflix took a similar stance on ads a few years ago. Over time, though, the economic calculus changed such that the streaming giant realized that it needed a way to attract and keep customers who weren’t interested in paying more for an uninterrupted viewing experience. Similarly, it wouldn’t be shocking if Apple comes to the same conclusion a few years from now. Netflix introduced an ad-supported tier in November 2022, and it has proven to be immensely popular — especially now that the base price for an ad-free subscription has shot up to $17.99 per month. Earlier this year, Netflix co-CEO Greg Peters said that revenue from in-show advertising is growing, with Netflix’s ad revenue set to double in 2025.
Interest in Apple TV is on the rise
Apple is famously very judicious about the type of data it shares with the public, and Apple TV viewership is something Apple has never been comfortable divulging. Still, the company in recent years has intimated on several occasions that the total number of Apple TV subscribers is rising impressively fast. When asked about specific subscriber figures, Cue said the following: “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.”
So while Apple won’t tell us how many Apple TV subscribers there are, it has provided us with some intel on the matter. Recall that Cue, during a recent podcast interview, was asked if Apple TV had 45 million subscribers. Cue simply said that the actual subscriber base is “significantly more than that.” Whatever the figure is, it’s rather impressive when you consider that Hulu — which debuted eight years before Apple TV — currently has an estimated 55 million subscribers.
Apple’s secret weapon is original programming
Cue attributes the increase in Apple TV subscribers to the company making a concerted effort to increase the selection and range of content on Apple TV. It also helps that Apple, rather than filling its content library with licensed third-party junk, has made it a point to focus on quality over quantity. Over time, it’s proven to be a worthwhile strategy as Apple’s selection of original programming has garnered dozens of prestigious awards. Just last year, Apple TV programming won 10 Primetime Emmy Awards. It’s also had several breakout TV hits, including “Severance” and “Ted Lasso.” On the movie front, the film “CODA,” which was released via Apple TV in 2021, won an Academy Award for Best Picture.
Amid Apple TV’s rapidly growing content library, one of its most anticipated series is “Pluribus,” a new show from “Breaking Bad” creator Vince Gilligan. The series is a sci-fi thriller starring Rhea Seehorn, who you’ll likely remember for her award-winning work on Gilligan’s “Better Call Saul” series. The series debuts tonight on November 7 and has already garnered impressive reviews. It’s worth noting that Apple had enough faith in Gilligan and his new project that it has already greenlit the series for two seasons. Gilligan has been on a roll since he embarked on “Breaking Bad,” and if “Pluribus” turns out to be as successful as his previous creations, it stands to reason that Apple TV’s subscriber base is poised to soar even higher.
