Apple is losing over $1 billion annually on its TV streaming service despite subscriber growth

Apple is losing more than $1 billion annually on its TV streaming service and has begun to scrutinize its costs more closely. Apple TV+, the tech titan’s ambitious plunge into the streaming wars, is bleeding cash at an alarming rate—over $1 billion annually—despite boasting a subscriber base of roughly 45 million in 2024.

According to an exclusive report from The Information, Apple TV+ is losing over $1 billion each year. Despite gaining traction with hit shows like Ted Lasso and Severance, the service remains unprofitable.

“Apple is losing more than $1 billion annually on its TV streaming service and has begun more closely scrutinizing its costs,” The Information reported.

The report comes two years after Apple raised the subscription prices for Apple TV+ and Apple News+. Apple TV+ increased from $6.99 to $9.99 per month, while Apple News+ went from $9.99 to $12.99 per month.

Apple’s TV Streaming Service Bleeds Over $1 Billion Annually Despite Subscriber Growth

Since its 2019 launch, Apple has poured more than $5 billion a year into original programming, though spending dropped by about $500 million last year. The platform had around 45 million subscribers in 2024, but even with its $6.99 monthly fee and a collection of award-winning titles, expenses far exceed revenue. For comparison, Netflix racks up more viewing in a single day than Apple TV+ does in a month, illustrating the intense competition in streaming.

Apple isn’t panicking, though—its overall financial strength allows it to absorb these losses while it builds up the service.

Betting Big on Prestige Content

From the outset, Apple TV+ positioned itself as a premium player, banking on high-budget originals to stand out against Netflix, Disney+, and Amazon Prime Video. The approach has delivered critical acclaim—CODA became the first streaming movie to win a Best Picture Oscar in 2022—but not financial returns.

Apple initially invested over $5 billion annually into programming, backing productions from top-tier directors and actors. In 2024, that figure dipped slightly as the company adjusted its approach, with CEO Tim Cook reportedly taking a closer look at costs. While Netflix thrives on an extensive content library, Apple TV+ has stuck to a curated strategy, focusing on fewer but high-quality productions.

Yet, prestige hasn’t translated into profitability. Despite 45 million subscribers, Apple TV+ still lags far behind Netflix’s 283 million and Prime Video’s 200 million. At $6.99 per month (later raised to $9.99 in 2023), the service hasn’t found a way to close the financial gap.

Hollywood Spending, Tech-Sized Losses

Apple has spared no expense in its quest to make a mark in entertainment. Since 2019, it has spent over $20 billion on content, according to Bloomberg. Major investments include $500 million for movies from directors like Martin Scorsese (Killers of the Flower Moon) and Ridley Scott (Napoleon). TV projects aren’t any cheaper—Severance Season 2 is reportedly costing $20 million per episode, a budget comparable to HBO’s most expensive productions.

But the financial return has been underwhelming. According to The Information, Apple TV+ accounted for just 0.3% of U.S. screen time in June 2024—dwarfed by Netflix’s 8%. Costly bets like Argylle, a $200 million film that flopped at the box office, have forced Apple to rethink its film strategy. Instead of chasing theatrical hits, the company is shifting focus to streaming exclusives. Even with recent subscriber growth—Antenna data shows a 2-million-subscriber spike in one month following Severance’s buzz—losses remain significant.

A Small Player in a Giant Machine

Apple’s financial muscle makes its losses on TV+ look minor in the grand scheme. In its last reported quarter, the company pulled in $124 billion in revenue and $36 billion in profit. The services division, which includes Apple TV+, Apple Music, and iCloud, remains its fastest-growing segment, generating $96 billion in 2024 with margins exceeding 75%. Unlike hardware, where margins sit below 40%, services drive Apple’s profitability. But while iCloud and App Store revenue thrive, Apple TV+ remains an outlier—one of the few services that doesn’t turn a profit.

Eddy Cue, Apple’s head of services, initially protected TV+ executives from budget scrutiny. That changed in 2022 when Tim Cook started demanding accountability. Reports from MacRumors suggest Cook has been personally reviewing expenses, including private jet costs for stars and inflated production budgets. The result? A leaner operation, but still far from breaking even.

Can Apple Change Course?

Apple isn’t backing down just yet. Recent moves hint at a shift: bringing in Maria Ines Rodriguez from Disney and Hulu to license films to third parties, slashing budgets for underperforming projects, and cutting show renewals from an average of 3.67 seasons in 2019 to just 2 seasons by 2021.

Yet, the strategy remains unchanged—prioritizing quality over quantity. Unlike Netflix’s approach of flooding the market with content, Apple TV+ continues to focus on a carefully curated lineup. The model wins awards but hasn’t captured enough subscribers to make a financial impact.

Streaming is a brutal business, and heavy losses are expected—Netflix operated at a loss for years before turning a profit. Apple has the financial cushion to play the long game, but serious questions remain. Is Apple TV+ a genuine attempt to compete with the streaming giants, or just a high-profile vanity project? Right now, the balance sheet suggests it’s an expensive experiment, one that underscores how difficult it is to break into the entertainment industry—even for a company with Apple’s resources.