Apple TV+ is losing big—over $1 billion a year—even with 45 million subscribers. Launched in 2019, it brings hit shows like Ted Lasso and Severance, but here’s the catch: it barely makes a dent in the streaming wars.
Less than 1% of monthly viewers tune in, putting it far behind giants like Netflix and Disney+. With that in mind, Apple decided to tighten its belt, cutting its content budget from $5 billion to around $4.5 billion last year.
So, what’s going on? Let’s break down why Apple TV+ is struggling and what it means for the company’s bigger plans.
Apple TV+: Big Spending, Bigger Losses
So, Apple TV+ has been a big investment for Apple since it launched in 2019. In the beginning, they were spending over $5 billion a year on content, though they recently cut that down by about $500 million.
Even with all that money going in, the service is still losing more than $1 billion a year (According to The Information). That makes it the only one of Apple’s subscription services that isn’t turning a profit.
The idea was to focus on big-budget, original shows and movies, but so far, that plan hasn’t paid off.
Now, there’s growing pressure inside the company to figure out what’s going wrong.
45 Million Subscribers: Growth or Growing Pains?
Apple TV+ has come a long way since its launch in 2019, growing to about 45 million subscribers in 2024. That’s a solid boost, but it’s still nowhere near the big players.
Netflix? Over 300 million. Disney+? Around 124 million. Even with hit shows like Ted Lasso and Severance, Apple TV+ makes up less than 1% of total monthly streaming viewership. Compare that to Netflix, which sits at 8.2%, and the gap is pretty clear.
People are signing up, but they’re not sticking around as much. Apple TV+ may be growing, but it’s still struggling to pull in a larger, more engaged audience.
A Drop in the Bucket for Apple’s Bottom Line
Since, Apple is losing over $1 billion a year on Apple TV+, but for a company its size, that’s barely a scratch.
In 2024, Apple pulled in a massive $391 billion in revenue and made nearly $94 billion in profit. That means the streaming service’s losses add up to just 0.25% of total revenue and about 1% of net profit—not exactly a dealbreaker.
With deep pockets and plenty of ways to make money, Apple can easily afford to keep investing in Apple TV+ without feeling the pinch. It’s all part of the bigger plan, and a billion-dollar loss won’t slow them down.
