Apple (AAPL.O) is reportedly losing more than $1 billion annually on its streaming service, Apple TV+, according to a report by The Information on Thursday. The tech giant has invested over $5 billion per year on content since launching the service in 2019 but has cut its content spending by approximately $500 million in the past year.
Apple TV+, known for original shows like “Ted Lasso,” “The Morning Show,” and “Severance,” has struggled to keep up with competitors such as Netflix (NFLX.O), Disney+ (DIS.N), and Amazon Prime Video (AMZN.O) in terms of subscriber count. While Netflix leads the pack with 301.63 million subscribers, Apple TV+ is estimated to have reached 40.4 million subscribers by the end of 2024, according to Visible Alpha analysts.
Despite its struggles, Apple TV+ has been recognized for its quality productions, earning over 2,500 nominations and 538 awards, as highlighted by CEO Tim Cook in a January earnings call. The company has also bundled Apple TV+ with services like iCloud and Apple Music through its Apple One program, and it is available as part of a bundle with Comcast’s Peacock and Netflix at a discounted price of $15 per month.