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Apple’s new TV service will let viewers skip ads and it will compensate the media companies

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By Jennifer Faull, Deputy Editor

July 16, 2013 | 2 min read

Apple TV viewers will be able to cut out adverts and Apple will foot the media companies’ bill for skipped views, according to a report from former Wall Street Journal reporter Jessica Lessin.

As work continues on the long-awaited TV service, be it a set-top box or actual TV, Apple has apparently been approaching cable and TV networks in an effort to strike a deal that would allow users to watch live TV and cut out ads if they choose.

It will be a “premium” service, for which Apple will pay media companies for the lost revenue.

However, there are still questions being raised on how it would affect TV ratings, which ultimately set the price for ad space.

Furthermore, eMarketer projects US TV ad spending reached $66.35bn this year, so Apple’s reimbursement plan could end up costing it a fortune.

Adding fuel to the rumours is a granted patent, which Apple received last year. It describes a technology that could swap in a different stream of video during a commercial break, allowing adverts to be skipped.

Apple has not commented on the reports thus far.

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