Apple’s streaming service, Apple TV+, is losing more than $1 billion US ($1.43 billion CAD) per year, according to a report from The Information, which cites sources familiar with the matter.
Despite spending over $5 billion US annually on content since launching the platform in 2019, Apple cut that budget by $500 million last year in an effort to curb losses.
While traditional media companies have struggled to make streaming profitable, some have recently begun turning a profit. However, Apple TV+ remains the only unprofitable Apple subscription service, despite growing to around 45 million subscribers last year.
Unlike competitors that depend on streaming revenue, Apple, with $391 billion in annual revenue and $93.7 billion in net income in 2024, has the financial cushion to absorb these losses.
The service has produced several critically acclaimed hits, including The Morning Show, Ted Lasso, Shrinking, and Severance. The latter, executive produced by Ben Stiller, reportedly added 2 million new subscribers in February, making it Apple TV+’s best-performing show ever, according to research firm Antenna.
Apple is still committed to streaming, with top executives like Eddy Cue discussing its long-term strategy at SXSW earlier this month. But as competition with Netflix, Disney+, and Prime Video remains fierce, Apple will need to decide how long it’s willing to subsidize Apple TV+ without turning a profit.
Apple TV+ content is in its own special world. While there are some decent shows like Severance, it’s not our go-to streaming service. Some bangers are coming out of Paramount+ like Landman and more, and these are the types of shows Apple TV+ doesn’t seem to make.
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It's like the article says. A few great shows like for all mankind or severance but that's it.
Recently installed the app and wow. Horrible design, no sort. Also nothing of interest. It's not worth the price. Even paramount and prime are essentially the same now. Prime is ten bucks for ads and all good movies have been moved to the rental market or you need another subscription to another service. Oh great movie oh but you need brit box. Or something like that.