Apple’s foray into the video streaming market continues to operate at a financial loss, with its Apple TV+ service reportedly losing more than $1 billion per year, according to a new report by The Information. The streaming platform, which launched in November 2019, is said to be spending approximately $4.5 billion annually on original content — a slight reduction from its previous peak of $5 billion.
Despite featuring an exclusively original slate of programming and expanding its global reach to over 100 countries, Apple TV+ has yet to turn a profit. The report estimates the platform has roughly 45 million subscribers, though it remains unclear how many of those are paying the full $9.99 per month or are part of promotional bundles and free trial offerings.
Apple does not break out Apple TV+ subscriber or revenue data, as the streaming division is housed within the company’s broader Services segment. That division, which also includes Apple Music, the App Store, iCloud, and other digital offerings, generated $26.3 billion in revenue in the final quarter of fiscal 2024 — a 14% year-over-year increase.
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While a $1 billion annual loss would be a significant hit for most companies, it is relatively minor in the context of Apple’s overall business. The Cupertino-based tech giant posted $391 billion in total revenue and $93.7 billion in net profit for its fiscal year ending September 2024, largely driven by its iPhone sales.
Apple TV+ has gradually built a reputation for high-quality, critically acclaimed content. Its original series include Emmy-winning hits like Ted Lasso and The Morning Show, along with popular dramas such as Severance, Silo, and Slow Horses. The service has also invested heavily in original films, including Martin Scorsese’s Killers of the Flower Moon, the Oscar-winning CODA, and upcoming titles featuring A-list stars like George Clooney, Brad Pitt, Scarlett Johansson, and Matt Damon.
Unlike competitors such as Netflix, Disney+, and Max, Apple TV+ does not currently offer a lower-cost ad-supported subscription tier, which could be limiting its ability to scale revenue. Moreover, a portion of its subscriber base likely includes users on promotional or bundled plans through partners like T-Mobile and Comcast, further complicating its financial outlook.
As the streaming landscape becomes increasingly competitive, Apple’s strategy appears to remain focused on prestige and quality rather than mass-market dominance — though whether that approach can eventually yield profitability remains to be seen.
Key Points:
- Apple TV+ is reportedly losing over $1 billion annually, according to a report by The Information.
- The company currently spends about $4.5 billion per year on original content, down from $5 billion in previous years.
- Apple TV+ has around 45 million subscribers, though it’s unclear how many are paying full price.
- The streaming platform is part of Apple’s Services segment, which includes other products like Apple Music and the App Store.
- Apple’s Services revenue reached $26.3 billion in Q4 2024, up 14% year over year.
- Despite the losses, Apple posted $93.7 billion in net profit in fiscal 2024, making the TV+ loss relatively minor in the broader financial context.
- Apple TV+ features award-winning content such as Ted Lasso, The Morning Show, CODA, and Killers of the Flower Moon.
- The service does not offer an ad-supported tier, unlike most major streaming rivals.
- Many Apple TV+ users are on discounted or bundled plans, such as through T-Mobile or Comcast, or receive it free with new Apple device purchases.
- Apple TV+ is available in over 100 countries and regions, priced at $9.99/month or $99.99/year in the U.S.
