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Apple TV+ Losing Over $1 Billion Annually, Report Says

Apple TV+ Losing Over $1 Billion Annually, Report Says

  • 20.03.2025 14:14
  • iphoneincanada.ca
  • Keywords: High Losses, Streaming Service, Subscription Service, Content Spending, Market Position

Apple TV+ is losing over $1 billion annually despite spending $5 billion on content and boasting 45 million subscribers. Unlike competitors that have turned profitable, Apple TV+ remains unprofitable, but Apple's financial strength allows it to sustain these losses while focusing on long-term streaming goals.

Apple ServicesApple ReportsNFLXsentiment_dissatisfiedDISsentiment_dissatisfied

Estimated market influence

Apple TV+

Negativesentiment_dissatisfied
Analyst rating: N/A

Losing over $1 billion annually, unprofitable despite high spending on content and growing subscriber base.

The Information

Neutralsentiment_neutral
Analyst rating: N/A

Reported the financial loss of Apple TV+

Ben Stiller

Positivesentiment_satisfied
Analyst rating: N/A

Executive producer of 'Shrinking,' which added 2 million subscribers for Apple TV+.

Antenna

Neutralsentiment_neutral
Analyst rating: N/A

Research firm that reported on the success of 'Shrinking'

Netflix

Netflix

Negativesentiment_dissatisfied
Analyst rating: Buy

Competitor to Apple TV+ in the streaming service market.

Disney+

Disney+

Negativesentiment_dissatisfied
Analyst rating: Buy

Competitor to Apple TV+ in the streaming service market.

Prime Video

Negativesentiment_dissatisfied
Analyst rating: N/A

Competitor to Apple TV+ in the streaming service market.

Context

Analysis of Apple TV+ Financial Performance and Market Implications

Financial Impact

  • Apple TV+ is losing over $1 billion US annually ($1.43 billion CAD).
  • Has spent over $5 billion US on content since launch in 2019.
  • Remains the only unprofitable Apple subscription service despite 45 million subscribers.

Content Strategy and Success

  • Known for critically acclaimed shows like The Morning Show, Ted Lasso, and Shrinking.
  • Shrinking, executive produced by Ben Stiller, added 2 million new subscribers in February 2024, marking its highest performance.

Competitive Landscape

  • Faces intense competition from Netflix, Disney+, and Amazon Prime Video.
  • Unlike competitors, Apple’s financial strength ($391 billion annual revenue, $93.7 billion net income in 2024) allows it to absorb losses.

Subscriber Growth and Market Position

  • Grew to ~45 million subscribers by 2023.
  • Despite success of individual shows, overall platform adoption is limited compared to streaming giants.

Future Outlook and Strategic Considerations

  • Apple remains committed to streaming, with Eddy Cue discussing long-term strategy at SXSW 2024.
  • Will need to evaluate sustainability of losses as competition intensifies.
  • Focus on high-quality original content may continue but must balance against profitability goals.