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TV+: Apple's streaming service allegedly a massive loss-making business

TV+: Apple's streaming service allegedly a massive loss-making business

  • 20.03.2025 23:02
  • heise.de
  • Keywords: High Losses

Apple's TV+ streaming service is reportedly losing over $1 billion annually despite cost-cutting measures. With only 40 million subscribers, it trails major competitors like Netflix and Disney+. Other subscription services such as Apple Music and News+ are also reportedly struggling to grow.

Apple ServicesAAPLsentiment_dissatisfiedNFLXsentiment_satisfiedDISsentiment_satisfied

Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

TV+ streaming service is causing massive losses

Netflix

Netflix

Positivesentiment_satisfied
Analyst rating: Buy

Leading with over 300 million subscribers

Disney+

Disney+

Positivesentiment_satisfied
Analyst rating: Buy

Over 120 million subscribers

Context

Analysis of Apple's TV+ Service Business Insights and Market Implications

Financial Impact

  • Annual Losses: Apple's TV+ service reportedly incurs over $1 billion USD in losses annually.
  • Content Spending: The company spends over $5 billion USD yearly on content production, with high costs for exclusive shows like Ted Lasso and Severance.

Market Position

  • Subscriber Base: TV+ had approximately 40 million subscribers by the end of 2024.
  • Competitive Landscape: Far behind Netflix (over 300 million subscribers) and Disney+ (over 120 million subscribers).

Strategic Adjustments

  • Cost-Cutting Measures: Apple has reduced expenses, including scaling back on costly productions and private jet usage for talent.
  • Content Strategy Shift: The company adjusted its cinema strategy, focusing on high-profile casts (e.g., Brad Pitt and George Clooney), but this hasn't translated to significant subscriber growth.

Business Impact

  • Declining Service Performance: Other subscription services like Music, Arcade, and News+ are profitable but show limited growth.
  • Services Segment Growth: Apple's Services division remains the only segment with significant growth, driven by App Store commissions and the Google search deal.

Competitive Dynamics

  • Industry Confusion: Netflix Co-CEO Ted Sarandos expressed puzzlement over Apple's strategy, noting it may involve "something we can't see."
  • Cross-Platform Availability: TV+ is available across all platforms, including a recently launched Android app.

Long-term Effects and Regulatory Impacts

  • Unclear Strategy: Despite six years of operation, the long-term vision for TV+ remains unclear.
  • Regulatory Scrutiny: Potential implications from controversial business practices like App Store commissions could impact future growth.

This analysis highlights Apple's challenges in the streaming market, its strategic shifts, and the broader industry dynamics affecting its subscription services.