Report: Apple to Sell Ad Space for TV+ Next Year, Hinting at Possible Ad-Supported Tier

Apple has held discussions with media agency and network executives about the possibility of selling ad time on its Apple TV+ streaming service, leading to speculation that an ad-supported tier could be in the offing.

Todd Teresi, Apple's advertising chief, has been leading meetings with company executives to sell video advertising space, with more discussions expected in 2022, according to a report. Citing an anonymous source, the report claims Apple has not asked one agency's network to put aside client dollars in the last three months of the year.

Apple is aiming to triple its ad revenue from $4 billion per year to double-digit figures by expanding its advertising to more apps and services.

Currently, Apple's advertising spots are spread over display ads in its News and Stocks apps, as well as for apps in the App Store. There are commercials for MLB Friday Night Baseball that are sold by MLB. It will be the home of Major League Soccer for the next 10 years, with Apple and MLS sharing ad space and sponsorship deals.

It's not clear how Apple might inject ads into its $4.99-a-month TV+ streaming service, but it could potentially be a lucrative revenue driver.

Apple has a limited amount of original content compared to other services, and it is not able to draw the same number of subscribers as other services. Apple could increase its audience figures without sacrificing its commitment to premium original programming and movie content if it offered an ad-supported or even free subscription plan.

It was reported in May that Apple's senior vice president of services had restructured services management in order to focus more on streaming and advertising. Since the beginning of the year, Teresi has been reporting directly to Cue.

A deal for a Big Ten college football and basketball streaming package is in the works. The National Football League's Sunday Ticket package is being pursued by Apple, according to rumors. It has talked about a content deal with the Pac-12 before.

Another window of opportunity for ad revenue is present when Apple ramps up its sports offerings. The perception of TV+ as a privacy-first player in the streaming services market remains to be seen.