Apple TV+ Losing $1 Billion Annually, Report Says

Highlights

• Apple TV+ reportedly loses over $1 billion annually despite significant investments in award-winning original content.
• Apple TV+ lags behind competitors like Netflix with 301M subscribers and Disney+ with 124.6M).
• A report reveals that Apple TV+ has an estimated 45M subscribers as of 2024.
• While most streaming services operate at a loss, Apple relies primarily on device sales.

Apple TV+ is reportedly losing over $1 billion every year making it the only unprofitable service in Apple’s portfolio, according to a new report from The Information.

Since its launch in 2019, Apple has invested around $5 billion annually in original content, though it cut that budget to $4.5 billion in 2024. The streaming platform is home to popular shows like “Severance,” “Ted Lasso,” “The Morning Show,” “Silo,” and “Shrinking.”

Despite producing award-winning content, Apple TV+ still lags behind major competitors like Netflix, Disney+ and Amazon Prime Video in terms of subscribers.

Apple doesn’t disclose subscriber numbers, but the report estimates that Apple TV+ has around 45 million subscribers. In comparison, Netflix leads the industry with 301 million subscribers.

The Indian Express report explains, “they (Apple) cut it (Investment)down to about $500 million in 2024, the report said. While Apple TV+ doesn’t share subscription figures, as per an estimate done by Visible Alpha, it has 40.4 million subscribers till the end of 2024. Corresponding figures for Netflix stands at 301.63 million and Disney+ has 124.6 million users.”

The service started with a limited content library and gradually expanded. Its first original series, “For All Mankind,” premiered in November 2019 and received praise from both audiences and critics. However, Apple does not share viewership data for its shows.

The report highlights that most streaming services operate at a loss and Apple is no exception. However, unlike companies that rely on streaming revenue, Apple’s primary business is selling devices, making it less vulnerable to financial losses from Apple TV+. The report notes that Apple ventured into the streaming business mainly to keep people in the Apple ecosystem.

Commenting on the Apple TV+ strategy, Netflix co-CEO Ted Sarandos during an interview with Variety recently said, “I don’t understand it beyond a marketing play, but they’re really smart people. Maybe they see something we don’t.”

FAQs

Q1. How much is Apple TV+ losing annually, according to reports?

Answer. Apple TV+ is reportedly losing over $1 billion annually, making it the only unprofitable service in Apple’s portfolio.

Q2. How does Apple TV+ compare to its competitors in terms of subscribers?

Answer. Apple TV+ has an estimated 45 million subscribers, significantly behind Netflix (301 million) and Disney+ (124.6 million) as of 2024.

Q3. Why is Apple less impacted by financial losses from Apple TV+?

Answer. Unlike companies relying solely on streaming revenue, Apple’s primary business is selling devices, making it less vulnerable to losses from Apple TV+.

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