• by Wayne Friedman , Staff Writer, 9 hours ago

Apple TV won’t have a Netflix-like awakening anytime soon with regard to an ad-supported option of its streaming service.

For many years, Netflix resisted many industry analysts who expected and recommended that the company add an advertising option to its consumer choices. And then, with a few quarterly revenue hiccups, it dramatically reversed its hardened stance.

And now? Around 55% of all new Netflix subscribers are taking on its ad-supported option -- now priced at $7.99 a month for the “Standard with Ads” version.

Apple is another kind of business. Unlike Netflix, it has a much broader-based business with its services and devices. In addition, Apple is not prone to any wild swings in quarterly financial results.

Also consider the current scale and scope of Apple TV (formerly Apple TV+). It was built conservatively, and now has a smaller but growing roster of quality TV shows and movies.

Senior vice president of Apple Services Eddy Cue offered some wiggle room in a recent story in Screen International, saying: “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.”

Of course, that is the same argument made by Netflix early on -- from around 2010 to 2021. In January 2020, CEO Reed Hastings reaffirmed that Netflix “won’t ever sell ads.”

Why? Hastings and others had the idea that ad-free content -- TV and movies -- seemingly take on a more heightened premium media value.

We might blame long-time premium cable TV network HBO for this thinking. It remains in the no-advertising zone for its linear TV platform. (HBO Max, however, is another story).

That said, Apple has conceded that live sports remains as the perhaps lone genre of content where it makes sense to have advertising. Apple does sell ads in Major League Soccer and Formula 1 auto racing.

In addition, Apple may not have the scale of inventory to be a major CTV ad player. But adding in specific parts of its services business -- search deals and direct ads -- analysts estimate that could total $4 billion.

If Apple does -- like Netflix -- make a move to CTV advertising, it might need to gravitate toward making a third-party help, like Netflix did with Microsoft’s Xandr unit when Netflix started up its ad-option in November 2022. Now, Netflix has its own in-house operations.

In a relative matter, Cue was also dismissive of making big acquisitions -- especially for Apple TV. He was pretty much thumbs down on Apple making a bid to buy Warner Bros. Discovery.

This is all to say that Apple continues to travel down its own path in that regard.

Don’t bet there is any streaming snoozing on this drive.