Apple TV Plus Streaming Service Reported to Have $1 Billion Annual Loss

The Apple TV Plus streaming video service is operating at a loss of $1 billion per year – 45 million subscribers by the end of 2024 could not save the platform from this result, The Information has learned. This is the only subscription from the Apple ecosystem that does not bring the company a profit.

As part of a “cost-cutting” effort, Apple has slashed its original content budget for Apple TV Plus by $500 million. Even with original hits like “Severance,” Apple’s platform represents less than 1 percent of the streaming service’s total monthly audience — compared with Netflix’s 8.2 percent, Nielsen found.

Apple launched its own streaming service just to keep people in its ecosystem. Netflix co-CEO Ted Sarandos sounded cautious about the competitor in an interview this week: “I don’t understand it outside of the marketing game, but they’re really smart people. Maybe they see something we don’t see.”

Apple TV Plus is part of a suite of services that brings in billions of dollars each year for Apple, including iCloud Plus, App Store purchases, and search advertising. Apple Music, which has reached 100 million users, including paying and trial subscribers, has also begun to show slowing growth. Apple News Plus, Fitness Plus, and Apple Arcade are “struggling with low usage and revenue,” while e-book sales have declined. If these services weren’t included in the Apple One bundle, which is typically purchased for iCloud Plus, they “likely would not be profitable.” Last year, Apple laid off about 100 people in its books and news division. The company has not officially commented on the success of its services.