In a significant financial update, Apple Inc. reveals its Apple TV+ streaming service is losing over $1 billion annually, a figure highlighted in a recent report from The Information. The tech giant has reduced its annual spending on content to $4.5 billion from an earlier $5 billion. Despite these losses, Apple continues to hold a robust financial position, with total revenues hitting $391 billion and a net profit of $93.7 billion for the fiscal year ending September 2024.
Apple TV+ has garnered significant attention since its launch in November 2019, with about 45 million subscribers currently enjoying its library of original content, including popular shows like “Ted Lasso” and “The Morning Show.” Notably, during an earnings call in January 2025, CEO Tim Cook disclosed that Apple TV+ productions had received more than 2,500 nominations and won 538 awards, emphasizing the platform's growing reputation in the competitive streaming arena.
Despite these accomplishments, Apple TV+ still lags behind other streaming services in terms of subscriber count. For context, Netflix leads the market with a staggering 301.63 million subscribers, while Disney+ follows with 124.6 million. Even as Apple continues to enhance its content offerings, the current subscriber count resides around 40.4 million, as estimated by analysts polled by Visible Alpha.
Apple’s services segment, which encompasses Apple TV+, has seen a year-over-year revenue increase of 14%, reaching $26.3 billion at the end of the 2024 quarter. This segment also includes other services such as Apple Music and the App Store, highlighting the diverse revenue streams contributing to the company’s substantial overall earnings.
Interestingly, Apple TV+ maintains a competitive pricing structure with a subscription cost of $9.99 per month or $99.99 annually in the U.S. However, it is distinct within the major streaming platforms as it does not yet offer a reduced-price ad-supported tier, a strategy some competitors are adopting to draw in more budget-conscious viewers.
As the battle for streaming supremacy intensifies, partnerships and bundling strategies are becoming essential. Comcast, for instance, bundles Apple TV+ with its Peacock and Netflix services for $15 per month, showcasing the shifting strategies in the industry to attract subscribers amid rising competition.
Apple continues to face challenges as it navigates the shifting landscape of streaming services, with a need to adapt to consumer demands for bundled services and more affordable options. In the evolving market, media companies are increasingly combining their offerings to create appealing packages for subscribers, an area where Apple is still carving its niche.
In summary, while Apple TV+ has achieved critical acclaim and holds a sizable subscriber base, it is grappling with significant financial deficits. With careful adjustments in spending and continued efforts in content creation, the tech giant aims to bolster its position in an increasingly crowded market.
