Apple Reportedly Losing Over $1 Billion Annually on Apple TV+ as Subscriptions Lag

Apple is reportedly losing more than $1 billion a year on its streaming service, Apple TV+, according to a report from The Information. The report, citing sources familiar with the matter, states that while Apple has been spending over $5 billion annually on content since launching the platform in 2019, it cut back spending by about $500 million last year.

Despite offering popular original shows like Ted Lasso, The Morning Show, Shrinking, and Severance, Apple TV+ still falls behind competitors like Netflix, Disney+, and Amazon Prime Video in terms of subscribers.

Streaming giant Netflix leads the industry with 301.63 million subscribers, followed by Disney+ with 124.6 million and Warner Bros. Discovery with 116.9 million. While Apple does not publicly share Apple TV+ subscriber numbers, analysts estimate it will reach around 40.4 million users by the end of 2024, significantly trailing its competitors.

To attract more subscribers, Apple TV+ is part of a bundle offered by Comcast, which includes Peacock and Netflix for $15 per month. On its own, Apple TV+ costs $9.99 per month in the U.S. Apple also includes the service in its Apple One subscription package, which bundles multiple Apple services like iCloud and Apple Music.

Although Apple TV+ struggles to compete in subscriber numbers, its productions have been recognized in the entertainment industry. CEO Tim Cook shared in a January earnings call that Apple TV+ productions have received over 2,500 nominations and won 538 awards.

With growing competition in the streaming industry, companies are focusing on bundling services at lower prices to attract budget-conscious viewers. Apple has yet to respond to the report, and it remains unclear how it plans to improve Apple TV+’s performance against its rivals.

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