Ad layer may be coming soon

The major streamers have all launched ad-based tiers in an attempt to increase revenue without continually raising monthly subscription prices. Netflix, Disney Plus, and Amazon have all done it. And it seems to be working out well. Netflix is ​​one example. The streamer seems more interested in getting customers to join its ad-based tier than in a cheaper, ad-free variant.

It was likely only a matter of time before Apple considered bringing advertising to Apple TV Plus. It appears that Apple will soon be rolling out an ad-based version in some markets, with the UK potentially being one of the first. There, Apple is apparently exploring launching an ad-supported version of Apple TV Plus, though pricing for such a subscription hasn’t leaked yet.

According to The TelegraphApple has entered talks with Britain’s TV ratings agency, a sign that Apple’s streaming service is preparing for advertising.

Apple executives met with Barb (not that Barb) in recent weeks to discuss ad tracking on Apple TV Plus. Barb provides viewing data for British TV, similar to Nielsen ratings in the U.S. That includes tracking streaming services, hence the meeting with Apple. Barb is jointly owned by broadcasters including the BBC, ITV, Channel 4 and Sky.

The report notes that Barb already tracks Apple TV Plus viewership. However, Barb will need new data collection features to track ads on the platform.

It’s unclear when Apple will launch an Apple TV Plus ad subscription. But all signs point to ads on the platform being imminent. It’s not just the Barb meeting. A few days ago, we heard that Apple is desperately trying to cut costs for Apple TV Plus productions. Apple reportedly spends around $20 billion a year on original content.

While its movies and TV shows routinely receive praise and awards, Apple TV Plus is hardly the Netflix competitor Apple would like it to be. We learned last week that Apple TV Plus gets fewer viewers in a month than Netflix does in a day. The latter is, of course, a huge deal.

But Apple TV Plus has been around for years and has yet to capture a more meaningful share of the market. Apple isn’t giving up, but it may make changes to how Apple TV Plus works. That includes cutting spending and introducing ad tiers in the markets where Apple TV Plus is available.

As a reminder, Apple hired Joseph Cady in March. Cady, a former advertising executive at NBCUniversal, could help Apple grow Apple TV Plus revenue through advertising.

That said, no details about a future ad-based Apple TV Plus tier have leaked. We have no idea how much the cheaper Apple TV Plus subscription would cost or whether Apple will simply drop ads into the current version and launch a more expensive, ad-free tier alongside it.

Additionally, we have no idea how many ads Apple TV Plus plays per hour. It’s important to consider this before choosing between an ad-only or ad-free subscription.

Finally, there’s no telling which markets will get ads first. Apple may be in talks with Barb in the UK, but other major markets are likely to get ads if Apple moves ahead with the plan.

The ad-free Apple TV Plus subscription costs $9.99 per month in the US and £8.99 in the UK after a free trial.