Apple losing over $1.34 billion a year on streaming service: Report
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The tech giant has spent more than US$5 billion (S$6.7 billion) a year on content since launching Apple TV+ in 2019.
PHOTO: REUTERS
Apple is losing more than US$1 billion (S$1.34 billion) a year on its streaming service, the Information reported on March 20, citing two people familiar with the matter.
The tech giant has spent more than US$5 billion a year on content since launching Apple TV+ in 2019, but trimmed it by around US$500 million in 2024, the report said.
Apple did not immediately respond to a Reuters request for comment.
Apple TV+, known for original shows such as Ted Lasso (2020 to present), The Morning Show (2019 to present), Shrinking (2023 to present) and Severance (2022 to present), has lagged behind rivals Netflix, Disney+ and Amazon.com’s Prime Video in terms of subscribers.
Industry leader Netflix had a total subscriber count of 301.63 million, according to the latest data, while Disney+ had 124.6 million users, followed by Warner Bros Discovery at 116.9 million.
The iPhone-maker does not break down the subscribers for Apple TV+, but it is estimated to have reached 40.4 million at the end of 2024, according to five analysts polled by Visible Alpha.
Apple TV+ productions have earned more than 2,500 nominations and 538 wins, chief executive Tim Cook said in a post-earnings call in January.
As competition heats up in the streaming industry, media companies are increasingly bundling their services at discounted rates to appeal to price-conscious consumers.
Apple TV+ is part of a bundle offered by Comcast that combines the service with Peacock and Netflix at US$15 a month. Apple TV+ costs US$9.99 a month in the US when it is bought separately.
The Cupertino, California-based company also bundles Apple TV+ with services such as iCloud, Apple Music and others under the Apple One programme. REUTERS
