Apple TV+ has been a significant investment for the tech giant, with a reported annual loss of $1 billion. This staggering figure is a result of the high production costs associated with creating original content.
The reported $1 billion annual loss is a significant blow to Apple's bottom line, considering the company's overall revenue and profit margins. It's a substantial amount of money, especially when you consider that Apple is one of the world's most valuable companies.
Despite these high costs, Apple TV+ continues to produce high-quality content, with a focus on exclusive and original programming. The service has managed to attract a loyal subscriber base, but it's unclear if it will ever turn a profit.
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$1B in losses
Apple TV+ is reportedly losing $1 billion a year, which might seem like a lot, but in the grand scheme of things, it's actually a drop in the bucket for Apple. The company is worth nearly $4 trillion and made $93.7 billion in net income during its most recent fiscal year.
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This loss is expected, as Apple TV+ wasn't designed to be profitable until years after its launch, like other streaming services. An Apple TV+ employee reportedly said the service is expected to lose $15 billion to $20 billion during its first 10 years.
Apple TV+ is lumped together with other parts of its business, like Apple Music and iCloud storage, under the "Services" umbrella on its earnings reports. This sector has performed well as of late, bringing in $26.1 billion during the holiday quarter, up 14% year-over-year.
The service costs £8.99 a month in the UK and $9.99 a month in the United States, but Apple TV+ doesn't have ads and hasn't increased prices since the fall of 2023. This is a long time for a streaming service, and it's likely that Apple is trying to keep prices low to attract and retain subscribers.
Apple TV+ had 45 million customers last year, which is a significant number, but still lower than some of its competitors. For example, Netflix has 302 million subscribers, while Disney+ has 125 million.
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Viewership and Profitability
Apple TV+ has a significant challenge on its hands when it comes to viewership. It garners less than 1 percent of monthly TV viewership, compared to Netflix's 8.2 percent and Max's 1.2 percent in February 2025.
Apple TV+ is not yet profitable, even with growing subscriber numbers. Apple's losses on TV+ amount to over $1 billion per year.
The streamer's limited viewership is a major factor in its inability to turn a profit. Apple TV+ reportedly spent $14.9 million on commercials for Apple TV+ in October 2019, compared to $28.6 million on the iPhone.
Apple TV+ has been criticized for its small marketing efforts, which are likely a contributing factor to its low viewership numbers. It's unclear how Apple can effectively compete with its rivals, who have much bigger libraries and are shifting toward mass, mainstream appeal.
As of last year, Apple TV+ had 45 million subscribers. However, the current Severance hot streak may have added to this number - some reports suggest the streamer added two million new subscribers in a single month.
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