Apple Losing Over $1 Billion Annually on Streaming Service
Apple is losing more than $1 billion a year on its streaming service, Apple TV+, according to a report by the Information.
The tech giant has spent over $5 billion annually on content since launching Apple TV+ in 2019 but reduced that amount by approximately $500 million last year, the report said.
Apple TV+ features original shows such as "Ted Lasso," "The Morning Show," "Shrinking," and "Severance." However, it has struggled to compete with streaming giants like Netflix, Disney+, and Amazon Prime Video in terms of subscriber numbers.
Netflix leads the industry with 301.63 million subscribers, followed by Disney+ with 124.6 million and Warner Bros Discovery with 116.9 million. Apple does not disclose its Apple TV+ subscriber count, but analysts polled by Visible Alpha estimate it reached 40.4 million by the end of 2024.
Despite its smaller subscriber base, Apple TV+ productions have received more than 2,500 nominations and won 538 awards, CEO Tim Cook said during an earnings call in January.
As competition in the streaming industry intensifies, companies are bundling services at discounted rates to attract cost-conscious consumers. Apple TV+ is included in a Comcast bundle with Peacock and Netflix for USD 15 per month. When purchased separately, Apple TV+ costs USD 9.99 per month in the U.S.
Apple also offers Apple TV+ as part of its Apple One bundle, which includes services such as iCloud and Apple Music.
Apple is losing over $1 billion annually on Apple TV+, according to a report.
The company has spent more than $5 billion per year on content since 2019.
Apple TV+ has an estimated 40.4 million subscribers, far behind Netflix and Disney+.
Source: REUTERS