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Apple's Streaming Service Is Losing A Ridiculous Amount Of Money

Apple's Streaming Service Is Losing A Ridiculous Amount Of Money

  • 20.03.2025 20:03
  • msn.com
  • Keywords: Apple TV+, Streaming Service

Apple TV+ is losing $1 billion annually but remains a minor concern for Apple due to its massive revenue. Despite heavy losses, Apple continues to invest in high-profile projects and original content while focusing on long-term growth and cultural impact through Emmy and Oscar wins.

Apple ServicesAAPLsentiment_dissatisfiedPARAsentiment_satisfied

Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Losing $1 billion annually

Paramount+

Paramount+

Positivesentiment_satisfied
Analyst rating: N/A

Leading with 77.5 million subscribers

Context

Business Analysis: Apple TV+ Financial Performance and Market Implications

  • Annual Loss: Apple TV+ reported an annual $1 billion loss in 2023.
  • Subscriber Base: Despite growing popularity of shows like Severance and Ted Lasso, Apple TV+ has only 45 million subscribers, lagging behind Paramount+'s 77.5 million and Netflix's dominant 301.6 million.
  • Content Strategy: Apple is investing heavily in high-profile talent, including deals with Reese Witherspoon, Jennifer Aniston, and Natalie Portman, as well as films starring Brad Pitt and Ryan Reynolds. However, some movies will be released theatrically before streaming on Apple TV+.
  • Market Position: As a tech giant, Apple can afford to absorb the losses ($1 billion is a small fraction of its $391 billion annual revenue). The focus remains on cultural impact (e.g., Emmy and Oscar wins) rather than immediate profitability.
  • Long-Term Viability: To compete with Netflix and Paramount+, Apple TV+ needs multiple hit series annually, similar to Severance's success in attracting 2 million new users.

Olympic Implications: New IOC Chief Kirsty Coventry's Strategy

  • New Leadership: Kirsty Coventry, the first African woman elected as IOC President, emphasized the importance of clear communication with US President Donald Trump ahead of the 2028 Los Angeles Olympics.
  • Political Challenges: Concerns about potential boycotts due to Trump's foreign policy and Zimbabwe's political climate were addressed. Coventry plans to step down from her role as Zimbabwe's sports minister.
  • Transgender Athletes: The IOC will form a task force to address the issue of transgender athletes, aligning with its commitment to solidarity and inclusion.
  • Global Representation: Coventry highlighted the significance of the Youth Summer Olympics in Dakar, Senegal, as an opportunity to showcase African culture and values.
  • Mentorship and Legacy: As a former IOC member, Anita DeFrantz inspired Coventry, who aims to pave the way for future generations of women leaders in sports governance.

Competitive Dynamics and Strategic Considerations

  • Apple's Risk-Tolerant Approach: Apple's ability to sustain losses highlights its unique position as a tech giant with deep financial resources, allowing it to prioritize cultural influence over short-term profitability.
  • IOC's Diplomatic Challenges: The new leadership faces complex geopolitical and social justice issues, requiring careful navigation of international relations and athlete rights.

Long-Term Effects and Regulatory Impacts

  • Apple TV+: If Apple continues to invest in high-quality original content and secures multiple hit series annually, it could gradually reduce its annual losses and challenge Netflix's dominance.
  • IOC: The success of Coventry's tenure will depend on her ability to balance political diplomacy with the core mission of promoting fair and inclusive sports competitions globally.