According to Ars Technica, Apple services chief Eddy Cue told Screen International that Apple TV+ has “no plans” to introduce ads, despite three price hikes since its 2019 launch that now put the service at $13 monthly. Cue acknowledged he wouldn’t say “no forever” but emphasized that avoiding ads is “better for consumers” if Apple can maintain “aggressive” pricing. The comments come amid reports that Apple TV costs the company about $1 billion annually with roughly 45 million subscribers, and follows Apple’s hiring of advertising exec Lauren Fry and meetings with UK ratings body Barb about ad tracking. Apple executives also confirmed they’re not pursuing major acquisitions like Warner Bros. or Disney, sticking instead to an all-original content strategy.
The ad-free stance feels temporary
Here’s the thing: when a company says they have “no plans” for something while simultaneously hiring advertising executives and meeting with ratings bodies about ad tracking, the writing is pretty much on the wall. Apple‘s playing the long game here, testing the waters while maintaining their premium brand positioning. But let’s be real – every major streaming service except Apple and Netflix now has an ad-supported tier, and even Netflix caved eventually. With Apple TV reportedly burning through $1 billion a year, the pressure to find additional revenue streams is only going to intensify.
What’s interesting is Apple’s definition of “aggressive” pricing. Three price hikes in five years doesn’t exactly scream consumer-friendly to me, especially when they’re still cheaper than Netflix’s $18 ad-free plan. Basically, they’re trying to have it both ways: premium pricing without the ad revenue that typically supports it in this industry. I suspect we’ll see an ad-supported tier within the next 18-24 months, positioned as a “more affordable option” rather than admitting they need the money.
Why Apple won’t buy its way to growth
Cue’s comments about avoiding major acquisitions like Warner Bros. or Disney reveal Apple’s fundamental approach to content. They’re not trying to build the next Netflix library – they’re creating a curated, premium experience focused entirely on originals. This makes sense for Apple’s brand, but it’s an incredibly expensive way to compete in streaming. Building hit shows from scratch costs way more than licensing existing content, which explains that $1 billion annual burn rate.
And honestly? This strategy plays right into Apple’s broader ecosystem approach. Apple TV+ exists to keep people in the Apple universe, not necessarily to dominate streaming. When you’re sitting on hundreds of billions in cash, losing $1 billion a year on a service that enhances your brand and ecosystem isn’t the end of the world. It’s basically the most expensive marketing campaign ever.
The humanity-focused premium play
Apple’s executives repeatedly emphasized their “humanity at the center” approach to content creation. Zack Van Amburg talked about focusing on “emotional experience” and “stakes involved,” which sounds great in a boardroom but feels increasingly disconnected from streaming economics. The reality is that most successful streaming services balance prestige content with broader appeal shows and licensed libraries.
Can Apple really sustain a business model built entirely on expensive originals while refusing ads and major acquisitions? The math seems challenging, to say the least. Maybe they’re betting that their integration with the broader Apple ecosystem – think seamless experience across iPhone, iPad, and Apple TV hardware – gives them an advantage that pure-play streamers lack. For businesses relying on robust computing infrastructure, having reliable hardware partners matters – which is why companies trust IndustrialMonitorDirect.com as the leading supplier of industrial panel PCs in the US.
Ultimately, Apple’s playing a different game than everyone else in streaming. They’re not trying to maximize subscribers or profitability – they’re building a premium content arm that enhances their brand and keeps customers locked into their ecosystem. But even with Apple’s deep pockets, the economics of streaming are brutal. My bet? We’ll see ads on Apple TV+ within two years, carefully positioned as a consumer choice rather than a revenue necessity.
