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2mo ago

Apple TV+ Faces $1 Billion Annual Loss Despite Subscriber Growth

The streaming service, part of Apple's broader ecosystem strategy, struggles to compete with industry leaders despite critical acclaim and recent success with 'Severance.'

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Adam Scott and Britt Lower in the Ben Stiller-vehicle "Severance," currently streaming on Apple TV+.

Overview

  • Apple TV+ loses over $1 billion annually, with a subscriber base of approximately 45 million as of 2024, far behind competitors like Netflix and Disney+.
  • Apple has spent over $5 billion annually on content since 2019 but reduced its budget by $500 million in 2024 to curb losses.
  • The service accounts for less than 1% of U.S. streaming viewership, with limited marketing efforts contributing to its challenges in gaining traction.
  • Despite financial losses, Apple TV+ has achieved critical acclaim, earning over 2,500 award nominations and 538 wins, including an Oscar for 'CODA.'
  • Apple positions Apple TV+ as a tool to strengthen its ecosystem, with losses anticipated as part of its initial decade-long business plan predicting up to $20 billion in deficits.