Apple TV+ becomes only unprofitable service in company’s portfolio
Apple TV+ is reportedly losing over $1 billion per year
Apple's renowned streaming service Apple TV+ is reportedly losing over $1 billion per year, despite having around 45 million subscribers.
According to a new report from The Information, this makes Apple TV+ the only unprofitable service in the Cupertino-based tech giant’s portfolio.
Notably, since its launch in 2019, the company has spent approximately $5 billion on content each year.
However, last year, Apple CEO Tim Cook reportedly cut the budget by about $500 million, reducing the amount to $4.5 billion in 2024.
For the unversed, Apple TV+ is known for its original shows, such as "Severance," "Ted Lasso," and "The Morning Show," which have earned over 2,500 award nominations and wins.
However, the streaming service still lags behind rivals such as Netflix, Disney+, and Amazon Prime Video in terms of subscribers.
For comparison, Netflix leads the streaming industry with 301 million subscribers and expects to spend $18 billion on content in 2025.
The report also suggested that Apple's significant spending on content has not yet translated to profitability for Apple TV+.
Despite this, Apple seems committed to its streaming service, with no indications of scaling back its efforts.
The company's overall profitability, with $93.71 million in net profit during the end of September 2024, provides compensation for the losses incurred by Apple TV+.
