Archive — US — techcrunch
Apple is reportedly losing $1B per year on its streaming service
Apple is losing over $1 billion annually on its streaming service, Apple TV+, which has not yet turned a profit since its 2019 launch. Despite spending around $4.5 billion yearly on content and receiving significant award nominations, it fails to compete with rivals like Netflix and Disney+, boasting only an estimated 45 million subscribers compared to Netflix's 301 million.
Key points
- Apple is losing more than $1 billion yearly on Apple TV+.
- Apple TV+ is the only unprofitable service in Apple's portfolio.
- Annual content spending started at $5 billion, lowered to $4.5 billion for 2024.
- Apple TV+ features original shows with numerous award nominations.
- Despite production success, Apple TV+ lags behind major competitors in subscriptions.
- Estimated 45 million subscribers for Apple TV+ vs. Netflix's 301 million.
Why it matters
- The streaming market is increasingly competitive as seen with the rising content costs.
- Apple's streaming struggles highlight challenges faced by many tech giants in diversifying services.
- By 2025, streaming services will likely adapt further with shifting consumer preferences and advanced AI-driven content curation.
Apple's ongoing losses in its streaming division underscore the difficulties in achieving profitability in a saturated market, further emphasizing the need for innovation and strategic shifts to keep pace with leading competitors.