Apple TV+ is losing a billion dollars a year

Apple’s streaming service, Apple TV+, is reportedly losing more than $1 billion annually, according to a recent report by The Information. Sources familiar with the matter indicate that Apple spent over $5 billion per year on content since the service launched in 2019, though that figure was reduced by about $500 million last year. Despite the substantial investment, the tech giant has not publicly disclosed the exact number of subscribers, but analysts polled by Visible Alpha estimate that Apple TV+ reached 40.4 million subscribers by the end of 2024.

Since its debut, Apple TV+ has garnered more than 2,500 award nominations and secured 538 wins, according to CEO Tim Cook’s statements during a post-earnings call in January. These accolades underscore Apple’s efforts to produce high-quality original shows and films, placing the service in direct competition with established streaming platforms such as Netflix, Amazon Prime Video, Disney+, and Hulu.

With competition intensifying across the streaming landscape, media companies are exploring strategies to attract price-conscious consumers by bundling services at discounted rates. One example is a partnership with Comcast, in which Apple TV+ is combined with Peacock and Netflix for $15 per month—a significantly lower price compared to subscribing to each service individually. For those interested in Apple TV+ on its own, the monthly cost stands at $9.99 in the United States.

Additionally, Apple offers Apple TV+ as part of its Apple One bundles, which package various services, including iCloud storage, Apple Music, Apple Arcade, and others, for a single monthly fee. This strategy is designed to encourage users to stay within the Apple ecosystem, benefiting from multiple services under one subscription. While the steep financial losses may raise eyebrows, Apple’s willingness to continue investing in Apple TV+ suggests a long-term commitment to capturing more market share in the competitive streaming arena.