Apple TV Execs Rule Out Ad-Based Tier, Shelve Warner Bros. Discovery Bid

Eddy Cue, senior vice president of Apple Services, has stated that there are no plans to introduce an ad-based subscription tier for Apple TV, despite reports suggesting the company has been exploring the possibility. Cue made the comments in response to a question from British movie magazine Screen International in its November 2025 issue. According to Cue, Apple prefers to maintain its aggressive pricing strategy, which has allowed the company to stay competitive in the streaming market. "If we can stay aggressive with our pricing, it's better for consumers not to get interrupted with ads," Cue said. Apple has raised its prices three times since the launch of Apple TV in 2019, and currently offers a range of subscription options, including a basic plan and a more premium service. Industry analysts have noted that Apple's decision not to introduce ads is a departure from the strategy employed by some of its competitors, such as Netflix and Hulu. These companies have introduced ad-supported tiers in an effort to attract price-conscious consumers and increase revenue. However, Cue's comments suggest that Apple is committed to maintaining its premium pricing model. The comments from Cue follow reports that Apple has been seeking knowledge on how to build a streaming ads business. In 2023, the company hired advertising executive Lauren Fry as head of video and Apple News ad sales. Additionally, Apple TV executives met with the United Kingdom's ratings body, Barb, to discuss what tracking ads on Apple TV would look like. The decision not to introduce ads on Apple TV may be seen as a reflection of the company's focus on maintaining a high-quality user experience. Apple has long been known for its commitment to delivering premium products and services, and its decision not to introduce ads may be seen as a way to maintain that focus. In recent years, the streaming market has become increasingly crowded, with a number of new entrants vying for market share. Apple's decision not to introduce ads may be seen as a way to differentiate itself from its competitors and maintain its position as a leading player in the market. As the streaming market continues to evolve, it will be interesting to see how Apple's decision not to introduce ads plays out. Will the company's commitment to premium pricing pay off, or will it ultimately be forced to reconsider its strategy? Only time will tell.