Apple TV+ has been in the streaming service game for nearly five years, steadily building its content library with prestige dramas and award-winning hits. But behind the glossy success, the financial reality is that Apple is reportedly losing more than $1 billion a year on its streaming service.
That’s despite the tech giant spending over $5 billion annually on content since its 2019 launch, though they did scale back by about $500 million last year.
Compared to traditional media companies, Apple’s losses might seem par for the course. Hollywood studios have burned through billions launching their own platforms, though some are finally clawing their way to profitability.
Apple, on the other hand, doesn’t seem fazed. With $391 billion in revenue for fiscal 2024, the losses from Apple TV+ are more of a drop in the bucket than an existential crisis.
Still, Apple TV+ has made notable progress, turning out critically acclaimed hits like The Morning Show, Ted Lasso, Shrinking, and Severance. That last one, executive produced and directed by Ben Stiller, just boosted the platform by 2 million new subscribers in February.
Stiller and Apple SVP Eddy Cue even took the stage at SXSW this month, highlighting Severance as Apple TV+’s top-performing show ever.
Apple CEO Tim Cook loves to highlight Apple TV+ wins on investor calls, but the company keeps its actual numbers under wraps. The streaming service is just one piece of Apple’s Services division, which also includes Apple Music, Arcade, Fitness+, News+, Books, the App Store, iCloud, Apple Care, and Apple Pay.
That entire sector raked in $96 billion in 2024, making it one of Apple’s fastest-growing revenue streams.
So, is Apple TV+ a failure? Not really, Even with billion-dollar losses, Apple is playing the long game, where streaming is less about immediate profitability and more about keeping users locked into the Apple ecosystem.
It’s a strategy that I’m sure will ultimately pays off. But for now, Apple seems just fine eating the cost.
Source: The Information
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