Apple’s Streaming Business Running at a Loss
Apple’s premium streaming service, Apple TV+, is reportedly operating at a significant loss, according to a new report. The platform is losing more than $1 billion per year, with Apple’s annual content expenditure estimated at around $4.5 billion, down from $5 billion in previous years.
The report, published by The Information, claims that Apple TV+ has approximately 45 million subscribers. However, Apple has not officially disclosed financial details or subscriber metrics for its streaming service. Representatives for the company have not commented on these figures.
Financial Impact on Apple
Despite the reported losses, the financial impact on Apple remains minimal. The tech giant reported $391 billion in revenue and a net profit of $93.7 billion for its fiscal year ending in September 2024. Apple TV+ falls under the company’s Services segment, which includes Apple Music, the App Store, and other digital offerings. This segment generated $26.3 billion in revenue in the last quarter of 2024, reflecting a 14% year-over-year increase.
Apple TV+ Content and Pricing
Apple TV+ boasts a lineup of critically acclaimed shows, including Emmy-winning series “Ted Lasso” and “The Morning Show.” Other popular titles on the platform include “Severance,” “Silo,” “Shrinking,” and “Slow Horses.”
The service also features exclusive films, such as Martin Scorsese’s “Killers of the Flower Moon” and the Oscar-winning “CODA.” Upcoming projects include “Fly Me to the Moon” starring Scarlett Johansson, the action-comedy “Wolfs” featuring George Clooney and Brad Pitt, and “The Instigators” with Matt Damon and Casey Affleck.
Apple TV+ is available in over 100 countries and is priced at $9.99 per month (or $99.99 annually). Unlike major competitors, the service does not offer an ad-supported tier.
Subscription Model and Revenue Concerns
It remains unclear what proportion of the reported 45 million Apple TV+ users are paying the full subscription price. Apple has various promotional strategies, including bundling the service with T-Mobile’s top-tier wireless plans at no extra charge. Additionally, Comcast offers a $15-per-month bundle featuring Apple TV+, Peacock, and Netflix. New Apple device purchasers also receive a free three-month trial of Apple TV+.
These promotional deals likely result in Apple TV+ generating less than $10 per subscriber on average, raising questions about the long-term sustainability of the platform’s current business model.