Apple Losing Over $1 Billion A Year On Streaming – Report

[BluBonnet]

Apple Losing Over $1 Billion A Year On Streaming – Report

Apple is losing more than $1 billion a year on streamer Apple TV+, according to a report in the Information that cited two people familiar with the matter.

The tech giant has spent over $5 billion a year on content since launching Apple TV+ in 2019 but trimmed that by about $500 million last year, the report said.

Traditional media companies have also lost billions to launch and feed their streaming platforms over the past five years. They have been working to stanch the red ink, with some recently posting profits. Apple, which saw $391 billion in annual revenue for its fiscal 2024, is better able to absorb losses.

Apple TV+ has made slow but steady progress since launching in 2019 with hits from The Morning Show to Ted Lasso, Shrinking and Severance. The latter series, executive produced and directed by Ben Stiller, grew the streaming service by 2 million subscribers in February, as per research and measurement firm Antenna. Stiller and Eddy Cue, SVP of Apple Services, took the stage at SXSW earlier this month to talk about the the genesis of Severance, the streamer’s top performing show ever.

Apple CEO Tim Cook, on quarterly conference calls with analysts, routinely tips his hat to Apple TV+ shows and awards they win. But the company doesn’t break out any data on the streamer, which is buried in the Services division — one of the company’s fastest growing — along with myriad other subscription platforms like Apple Music, Apple Arcade, Apple Fitness, Apple News+, Apple Books as well as the Apple App Store, iCloud, Apple Care, Apple Pay and more. The segment had revenue of $96 billion for FY 2024 that ended in September.

Apple didn’t immediately respond to a request for comment.