Apple Reportedly Losing Over $1 Billion Annually on Apple TV+

Apple Reportedly Losing Over $1 Billion Annually on Apple TV+

Apple (AAPL) is losing more than $1 billion per year on its streaming platform, Apple TV+, according to a report from The Information. The company has been spending over $5 billion annually on content since the service launched in 2019 but reduced its budget by approximately $500 million last year.

Despite producing hit shows like Ted Lasso, The Morning Show, and Severance, Apple TV+ lags behind competitors like Netflix, Disney+, and Amazon Prime Video in subscriber count. While Netflix leads the industry with 301.63 million subscribers, Apple TV+ is estimated to have 40.4 million users by the end of 2024, according to analysts at Visible Alpha.

Apple TV+ productions have earned over 2,500 nominations and 538 awards, as highlighted by CEO Tim Cook in January. However, with increasing competition, streaming services are turning to bundling strategies. Apple TV+ is included in a Comcast bundle with Peacock and Netflix for $15/month, while its standalone subscription costs $9.99/month. Apple also offers the service as part of its Apple One package, which includes iCloud and Apple Music.

As the streaming wars intensify, Apple’s long-term strategy for Apple TV+ remains under scrutiny. ??