Apple recently hired a new executive for Apple TV+ as it considers entering the video advertising market and expanding its ad business.
Apple to expand Apple TV+ ad business
According to a new report from The Information, the Cupertino tech giant has hired Lauren Fry, an advertising executive for TV and internet video. Her current position’s specific title is unknown, however, she has held a variety of sales positions at AT&T and Comcast as well as chief revenue officer at digital video ad tech company Simulmedia.
Apple TV+ does not yet have an ad-supported tier, in contrast to other streaming services. Its competitors Netflix and Disney launched their own ad-supported plans towards the end of 2022. But, the tech giant did create an advertising sales team so that it could air commercials during Major League Baseball and Major League Soccer games.
Sports broadcast advertisements could be the start of something bigger. Advertising industry officials predicted that Apple would eventually include advertisements in its original television shows and films, maybe through an Apple TV+ tier that would be sponsored by advertisements.
Several streaming providers have done the same, with Netflix and Disney+ offering video streaming subscriptions with commercials, for example. In 2022, Apple increased the cost of its services, but the company hasn’t yet indicated that it will start selling ad-supported streaming subscriptions.
Apple’s $4 billion advertising division is expected to grow over time. Last year, the tech giant started displaying more ads in its stock iOS apps like Stocks, News, and TV+ as well as in the App Store.
A report from 2022 claimed that the company is restructuring its Services division to put a stronger emphasis on streaming and advertising. Oliver Schusser, vice president of Apple Music and Beats, also began assisting with the management of Apple TV+ in January.
Peter Stern, who served as Apple’s VP of Services and contributed to the development of the Apple TV+ market, left the company in January. Schusser and two other vice presidents, Adrian Perica, vice president of corporate development, and Robert Kondrk, vice president of services, product, and design, are thought to share Stern’s prior responsibilities at Apple.