'Apple TV+ Bleeding Over $1 Billion Yearly As Streaming War Heats Up: Report' - Benzinga
- Kai Amode
- Mar 26
- 1 min read
The streaming service of Apple Inc., Apple TV+, is reportedly incurring annual losses exceeding $1 billion.
What Happened: Since its 2019 launch, Apple has been allocating over $5 billion annually to content for Apple TV+. However, this budget was cut by around $500 million last year. However, the losses are crossing $1 billion a year, the Information revealed on Thursday.
Despite its original shows like “Ted Lasso” and “The Morning Show”, Apple TV+ has found it challenging to rival industry leaders such as Netflix Inc., Disney Inc.‘s, Disney+ and Amazon.com‘s Prime Video in subscriber numbers.
Recent data indicates that Netflix leads with 301.63 million subscribers, followed by Disney+ with 124.6 million, and Warner Bros Discovery with 116.9 million. A Visible Alpha poll estimates that Apple TV+ will have reached 40.4 million subscribers by the end of 2024.
Despite these losses, Apple TV+ productions have received over 2,500 nominations and 538 wins, as announced by CEO Tim Cook in a post-earnings call in January. Amid escalating competition in the streaming industry, Apple TV+ is included in a Comcast package that includes the service along with Peacock and Netflix for $15 per month.
Why It Matters: Apple's streaming business falls under its Services segment, which also encompasses Apple Music, the App Store, and other ventures. For the fourth quarter, the Services segment generated $26.3 billion in revenue, reflecting a 14% year-over-year increase. Reportedly, Apple TV+ is the only segment of Apple’s services business that remains unprofitable. According to Arstechnica, limited viewership and small marketing efforts for Apple TV+ are some of the reasons behind these annual losses.
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