Apple plans to introduce full-screen video iAds for apps on the iPhone and the iPad later this year, reports AdAge. The new ads, described as "interstitials," will allow developers to opt into ads that play in between levels within a game or in between articles in a news-style app.

Full screen ads will mark a departure from Apple's typical advertising style, which has limited iPhone iAds within the App Store and iTunes Radio to less obtrusive banners that must be clicked for a video ad to be played. iTunes Radio also features audio ads, but full video ads within apps are arguably more interruptive.

Do they plan to make more money from ads than from selling hardware?
That's the only reason I can think of for making a product worse for the purchaser.

Not if people stop using their app they won't. That could easily happen if the adverts are too annoying.

Personally I prefer paying upfont for ad free versions of apps.

Yes, Apple products are so cheaply priced, that they need to earn a profit through advertising, in order to justify the cheap price. Oh, wait.

@jon, I assume it is supposed to be a way of boosting income for APP developers, they'll earn more for displayed ads than none clicked ads.

Unwanted video = resentment over bandwidth use and charges accrued as a result. This may not be a problem for all, but it may be a problem for those on profiled connections.

Also, the banner ads are less intrusive than taking over the full screen to roll a video would be.