Apple is reportedly losing $1B per year on its streaming service

Apple is reportedly losing $1B per year on its streaming service

  • 20.03.2025 21:26
  • techcrunch.com
  • Keywords: Apple

Apple is losing over $1 billion annually on its streaming service Apple TV+, which remains unprofitable despite significant content investments. Despite original shows like "Severance," the platform lags behind Netflix and Disney+ in subscribers, estimated at 45 million compared to Netflix's 301 million.

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Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Losing $1B annually on Apple TV+ streaming service.

Netflix

Netflix

Positivesentiment_satisfied
Analyst rating: Buy

Leading in the streaming market with 301 million subscribers.

Context

Analysis of Apple's Streaming Service Challenges and Market Implications

Financial Overview

  • Annual Loss: Apple is losing over $1 billion annually on its streaming service, Apple TV+.
  • Content Spending:
    • Spent approximately $5 billion annually since launch in 2019.
    • Reduced to $4.5 billion in 2024.

Content and Success

  • Original Shows: Known for high-quality originals like “Severance,” “Ted Lasso,” “The Morning Show,” “Silo,” and “Shrinking.”
  • Awards Recognition: Productions have earned over 2,500 award nominations and wins.

Subscriber Numbers

  • Apple TV+ Subscribers: Estimated at 45 million.
  • Competitive Context:
    • Netflix has 301 million subscribers.
    • Disney+ and Amazon Prime Video are also ahead in the market.

Market Trends and Industry Implications

  • Streaming Competition: Apple TV+ lags behind major competitors like Netflix, Disney+, and Amazon Prime.
  • Profitability Pressure: The service is the only one in Apple’s portfolio that isn’t profitable.

Strategic Considerations

  • Long-Term Effects:
    • Despite losses, Apple may continue investing due to potential hardware/software integration benefits.
    • Focus on improving subscriber acquisition strategies could be critical for future growth.

Competitive Dynamics

  • Content vs. Subscribers: High-quality content hasn’t translated into significant subscriber growth, highlighting the need for better marketing and distribution strategies.

Regulatory Impact

  • No direct mention of regulatory impacts in the text, but ongoing losses may attract antitrust scrutiny if tied to market dominance in other areas (e.g., hardware).