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Shocking Streaming Report Reveals How Much Money Apple Loses On Apple TV+

Shocking Streaming Report Reveals How Much Money Apple Loses On Apple TV+

  • 20.03.2025 20:17
  • msn.com
  • Keywords: AI, Streaming

Apple loses $1 billion annually on Apple TV+, spending heavily on original shows like Severance but gaining subscribers and awards. Meanwhile, Netflix finds acquired studio films more cost-effective than originals, as they generate more views per dollar spent.

Apple ReportsApple ServicesAAPLsentiment_dissatisfiedNFLXsentiment_satisfied

Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Losing $1 billion annually on Apple TV+

Netflix

Netflix

Positivesentiment_satisfied
Analyst rating: Buy

Acquired films provide better value for money

Context

Analysis of Streaming Industry Insights and Market Implications

Apple TV+ Financial Losses

  • Annual Loss: Apple loses $1 billion annually on Apple TV+.
  • Content Spending: The company has spent $5 billion since 2019, reduced to $4.5 billion last year.
  • Popular Shows: Severance is the most-watched series and drove a 126% increase in new subscribers. It generated over $200 million for Apple TV+.

Netflix's Movie Strategy Shift

Key Findings:

  • Acquired Films Efficiency: Acquired studio films provide more views per dollar spent compared to originals or acquired series.
    • Licensed Movies: Cost-efficient with $0.12 per view, vs. $0.55 for licensed TV shows and $0.68 for original series.
    • Longevity: Acquired library titles have a slower viewership decay rate (29% over one year), indicating long-term appeal.

Strategic Shift:

  • Focus on Acquisitions: Netflix is reducing original film commissions by 45% since 2021, with acquired films making up 84% of its global film catalog.
  • Theatrical Window Strategy: Plans to integrate major studio films into its library, signing deals for Universal and Focus Features.

Original Films:

  • Popularity vs. Longevity: Netflix originals like ChatGPT and The Super Mario Bros. Movie are top performers but have a quicker decline in viewership.
  • Theatrical Release Strategy: CEO Ted Sarandos emphasizes exclusive first-run movies, with short theatrical windows as exceptions.

Market Implications

  • Content Strategy Evolution: Streaming platforms like Netflix are prioritizing cost-effective acquisitions over expensive originals to improve margins and reach broader audiences.
  • Competitive Dynamics: Apple's high spending on original content contrasts with Netflix's shift toward acquisitions, highlighting different approaches to market penetration and profitability.
  • Regulatory and Long-Term Effects: The focus on acquired films may influence future content strategies and partnerships in the streaming industry.

Conclusion

The insights reveal a strategic pivot in the streaming landscape, with Netflix leveraging acquired content for efficiency and Apple investing heavily in original productions despite financial losses. These trends underscore the evolving business models and competitive dynamics within the streaming industry.