Apple’s Streaming Business Faces Major Losses
Apple is reportedly losing over $1 billion (C$1.4 billion) each year on its streaming service, Apple TV+. This details comes from a recent report that highlights the company's significant spending in this area.
High Spending on Content
As its launch in November 2019, Apple has invested around $5 billion (C$7.1 billion) annually to create content for Apple TV+. Though, last year, the company reduced its spending by approximately $500 million (C$716 million). This cutback indicates a shift in strategy as the company reassesses its financial commitments.
A History of Big Investments
According to previous reports, Apple has spent more than $20 billion (C$28.6 billion) on content sence starting its streaming service. The company gained a reputation for being one of the largest spenders in the industry. As an example, it reportedly paid about $700 million (C$1 billion) for just three films: Killers of the Flower Moon, Argylle, and Napoleon. Among these titles, only Killers of the Flower moon, directed by Martin Scorsese, achieved some success; the others received mixed or negative reviews and did not perform well at box offices.
Subscriber Numbers Remain Unclear
One fascinating aspect of Apple's streaming business is that it does not disclose how many subscribers are using Apple TV+. In contrast, competitors like Netflix and Disney+ share their subscriber counts publicly—301.63 million and 124.6 million respectively based on recent data.Analyst estimates suggest that Apple TV+ has around 45 million subscribers; however, this figure is unofficial.
Instead of breaking down subscriber numbers for each service separately, Apple's earnings reports combine all services under one category called “Services.” This category includes subscriptions like Apple Music and platforms such as App Store and Apple Pay. In fiscal year 2024 alone,this division generated about $96 billion (C$137.5 billion), but it's unclear how much came specifically from Apple TV+.
Financial stability Despite Losses
Despite these losses in streaming revenue, apple's overall financial health remains strong. The company reported earnings of approximately $391 billion (C$560 billion) during fiscal year 2024; thus it can manage these losses without significant concern.Apple's investment in original programming serves multiple purposes beyond immediate profits; prestige plays a key role too. During an earnings call earlier this year, CEO Tim Cook mentioned that productions from Apple TV+ have received over 2,500 nominations along with 538 wins across various awards shows.
Acclaimed Original Programming
Several original series have gained critical acclaim on the platform including Severance, Ted Lasso, The Morning Show, and pachinko. Notably, Apple TV+ made history by winning an Academy Award for Best Picture with its film CODA in 2021—the frist streamer to achieve this honor while other platforms like Netflix continue to seek similar recognition with films such as Roma and The Irishman.
Future outlook
As we look ahead at what lies ahead for Apple TV+, it appears that despite current challenges with profitability and subscriber transparency issues—Apple remains committed to maintaining its presence within streaming services moving forward.
