Apple TV+, the tech giant’s premium streaming service, may be known for its slick design and award-winning shows—but behind the scenes, it's hemorrhaging money. According to a recent report from The Information, Apple TV+ is currently losing more than $1 billion annually, despite having some of the most critically acclaimed content in the streaming landscape.
Here’s a breakdown of what’s happening behind the glossy trailers and Emmy wins:
A Billion-Dollar Burn
Since its launch in November 2019, Apple has been pouring massive sums into Apple TV+ in hopes of building a serious competitor to Netflix, Disney+, and Amazon Prime Video. The company was reportedly spending over $5 billion a year on original content, a number that has only recently been trimmed down by about $500 million.
Yet even with belt-tightening, the losses are still over $1 billion per year. That’s a massive figure—even for Apple, the world’s most valuable company.
Why the Losses Are So High
Here’s what’s fueling the financial bleeding:
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High Cost of Original Content
Apple TV+ doesn’t license much third-party content like Netflix or Hulu. Instead, it relies heavily on expensive, prestige originals, many with A-list talent. Think:- The Morning Show starring Jennifer Aniston and Reese Witherspoon
- Ted Lasso with Jason Sudeikis
- Masters of the Air produced by Tom Hanks and Steven Spielberg
These kinds of productions often come with massive production budgets, often exceeding $200 million per season for top shows.
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Smaller Subscriber Base
Despite its premium offerings, Apple TV+ has an estimated 45 million subscribers—far fewer than Netflix (230M+) or Disney+ (150M+). Fewer subscribers = less revenue = more red ink. -
Low Entry Pricing
Apple launched TV+ at $4.99/month, significantly lower than its competitors. Though the price has since increased, it's still not enough to offset the high content spend. -
Bundling Strategy
Many users access Apple TV+ through free trials or Apple One bundles, which makes it difficult to calculate how many people are actually paying for the service.
Is Apple Worried? Not Really—Yet.
The billion-dollar losses might sound scary, but let’s not forget:
- Apple has over $160 billion in cash reserves.
- Streaming isn’t its core business—iPhones, Macs, and services like iCloud and the App Store are still the main moneymakers.
Apple TV+ appears to be playing the long game—building a foundation of prestige content, expanding slowly, and using its deep pockets to survive while other platforms burn out or consolidate.