Apple losing over $1 billion a year on streaming service, the Information reports

Apple losing over $1 billion a year on streaming service, the Information reports

  • 21.03.2025 13:10
  • eu.statesman.com
  • Keywords: Apple TV+ Competes, Netflix, Disney+, Amazon Prime Video

Apple is losing over $1 billion annually on its streaming service, Apple TV+. Despite spending heavily on content since 2019, it trails major competitors like Netflix and Disney+ in subscribers. To compete, media companies are bundling services at discounted rates, while Apple offers its TV+ as part of the Apple One bundle with other services.

Apple ReportsAAPLsentiment_dissatisfiedNFLXsentiment_satisfiedDISsentiment_satisfied
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Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Losing over $1 billion annually on Apple TV+ streaming service. Spending more than $5 billion yearly on content since launch in 2019, reduced spending by $500 million last year.

Netflix

Netflix

Positivesentiment_satisfied
Analyst rating: Buy

Leading with 301.63 million subscribers

Disney+

Disney+

Positivesentiment_satisfied
Analyst rating: Buy

Has 124.6 million users

Amazon Prime Video

Positivesentiment_satisfied
Analyst rating: N/A

Competitor to Apple TV+

Context

Business Insights and Market Implications

Financial Performance

  • Apple reported $1 billion+ annual losses on its streaming service, Apple TV+, since its 2019 launch.
  • Annual content spending exceeded $5 billion, with a reduction of ~$500 million last year.

Subscriber Metrics

  • Apple TV+ lags behind key competitors:
    • Netflix: 301.63 million subscribers
    • Disney+: 124.6 million users
  • Apple TV+'s exact subscriber count remains undisclosed, but estimates suggest ~40.4 million by end of 2024.

Content and Recognition

  • Apple TV+ productions have garnered significant recognition:
    • Over 2,500 nominations and 538 wins across its library.
    • Highlighted during Tim Cook's post-earnings call in January 2024.

Competitive Dynamics

  • Media companies increasingly bundle services at discounted rates to compete.
  • Comcast offers a bundle including Apple TV+, Peacock, and Netflix for $15/month.
  • Standalone Apple TV+ subscription: $9.99/month in the U.S.
  • Apple bundles its service with iCloud, Apple Music, etc., under the Apple One program.

Strategic Considerations

  • High content spending vs. limited subscriber growth raises questions about long-term viability.
  • Bundling strategies aim to offset competition and retain customer loyalty.

Market Implications

  • The streaming wars intensify, with traditional players like Netflix facing pressure from bundled offerings.
  • Apple's focus on premium content may not translate to scale, impacting its market share in the streaming sector.
  • Regulatory scrutiny could increase if bundling practices are perceived as anti-competitive.