Apple TV+ Reportedly Losing Over $1 Billion Annually Despite Hit Shows
Apple is reportedly incurring over $1 billion in annual losses on its Apple TV+ streaming service, despite investing heavily in original programming. According to sources cited by The Information, the company spends around $4.5 billion per year to produce exclusive content for the platform.
With an estimated 45 million subscribers, Apple TV+ remains far behind streaming giants like Netflix, which boasts over 300 million users. Its all-original content strategy, while successful in producing critically acclaimed shows like Severance and Ted Lasso, has not yet turned the service into a major revenue driver.
However, for a tech giant like Apple—which generated $391 billion in revenue last fiscal year with $93.7 billion in net profit—these losses are relatively insignificant. Apple does not disclose Apple TV+ revenue separately, but the service is part of its broader services division, which includes Apple Music and the App Store. This segment earned $26.3 billion in Q4 2024, reflecting a 14% year-over-year increase.
Apple TV+ has made notable strides in Hollywood and live sports, becoming the exclusive home of Friday Night Baseball and winning a Best Picture Oscar for CODA in 2022. Since then, CEO Tim Cook has reportedly taken a more active role in shaping the platform’s future.
Despite its subscriber count, it remains unclear how many users are paying the full $9.99 monthly fee. Apple frequently offers extended free trials with new device purchases, while partnerships with companies like T-Mobile provide Apple TV+ as a bundled perk. Similar bundle deals with services like Peacock and Netflix also suggest Apple is exploring flexible pricing strategies.
While Apple TV+ may not yet be a financial powerhouse, it serves a strategic purpose—deepening customer loyalty within the Apple ecosystem. With continued investment in premium content and creative pricing models, the platform remains a key player in the highly competitive streaming industry.
