Apple losing $1 billion annually on streaming service, report shows

Apple is reportedly losing over $1 billion each year on its streaming service, Apple TV+, according to a report from The Information. Despite spending more than $5 billion annually on content since its 2019 launch, they did cut costs by $500 million last year. The company has not responded to requests for comment on this information.

Apple TV+ features popular original shows like “Ted Lasso,” “The Morning Show,” “Shrinking,” and “Severance.” However, when it comes to subscriber numbers, Apple TV+ falls behind competitors like Netflix, Disney+, and Amazon Prime Video.

Netflix boasts a total of 301.63 million subscribers, Disney+ has 124.6 million, and Warner Bros Discovery sits at 116.9 million. While Apple does not share specific subscriber numbers for Apple TV+, estimates suggest they reached 40.4 million subscribers by the end of 2024.

During an earnings call in January, Apple CEO Tim Cook highlighted the success of Apple TV+ productions, noting over 2,500 nominations and 538 wins. As the streaming landscape becomes more competitive, companies are bundling services to attract cost-conscious consumers.

For example, Comcast offers a bundle including Apple TV+, Peacock, and Netflix for $15 per month, compared to Apple TV+’s standalone price of $9.99 per month in the U.S. Apple also packages Apple TV+ with iCloud, Apple Music, and other services in the Apple One program.