Apple Losing $1 Billion A Year On Streaming?

Apple is reportedly losing more than $1 billion a year on its Apple TV+ SVOD streaming service according to a new feature piece at The Information (via Reuters)

The report cites two people familiar with the matter and says the tech giant has spent more than $5 billion a year on content since launching Apple TV+ in 2019, though trimmed it by around $500 million last year. Apple did not immediately respond to a request for comment by Reuters.

Apple TV+ was estimated to have reached 40.4 million subscribers by the end of 2024, making it one of the smaller ones compared to the likes of Netflix (301.6 million), Disney+ (124.6 million), Warner Bros Discovery (116.9 million), Paramount+ (72 million) and Hulu (54 million) but ahead of Peacock (36 million).

Apple, of course, is the most valuable company in the world with a market cap of $3.22 trillion (just ahead of Nvidia with $2.9 trillion) so is in no real danger of running out of money for the service.

Unlike every other SVOD service, which buys and sells existing TV series and film libraries, Apple TV+ is famous for focusing entirely on a range of high-quality originals.

Their film efforts have been somewhat of a mixed bag and have run the gamut from Oscar winners and nominees (“CODA,” “Killers of the Flower Moon”) to populist fare (“The Gorge,” “Wolfs,” “Family Plan”), to dogs (“Argylle,” “Ghosted”).

Their reputation for quality TV series on the other hand has been stellar with titles like “Ted Lasso,” “Severance,” “Silo,” “Slow Horses,” “Shrinking,” “The Morning Show,” “Foundation,” “Hijack,” “Pachinko,” “Monarch: Legacy of Monsters,” “Presumed Innocent,” “For All Mankind,” “Masters of the Air,” “Black Bird,” “Surface” and more scoring accolades and racking up more than 2,500 nominations and 538 wins over just the past few years.

Sources: The Information, Reuters

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