Apple TV Plus is reportedly losing over $1 billion each year, even as it boasts 45 million subscribers in 2024, according to a report from The Information. It is the only Apple service that is not turning a profit.
In an effort to tighten spending, Apple has reduced its initial $5 billion budget for Apple TV Plus content by about $500 million. Despite having popular original shows like Severance, Apple TV Plus captures less than 1% of the total monthly streaming viewership, compared to Netflix’s 8.2%, as reported by Nielsen.
The Information notes that Apple TV Plus was primarily designed to keep users within the Apple ecosystem. Netflix co-CEO Ted Sarandos commented on this strategy in a recent Variety interview, stating, “I don’t understand it beyond a marketing play, but they’re really smart people. Maybe they see something we don’t.”
Apple TV Plus is part of the company’s broader services division, which generates billions annually through offerings like iCloud Plus, App Store purchases, and search advertising. Sources have indicated that Apple Music, which reportedly reached 100 million users last year, is experiencing slowed growth.
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Apple News Plus, Fitness Plus, and Apple Arcade are also reportedly struggling with low usage and profitability. Additionally, digital book sales have declined. If these services weren’t bundled in Apple One—primarily purchased for iCloud Plus—they likely wouldn’t be profitable. Last year, Apple laid off around 100 employees in its News and Books division.
The Verge reached out to Apple for comment but has not received a response.
SOURCE: THE VERGE
