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Apple‘s video streaming business is still firmly in the red, according to a new report.
The Apple TV+ premium subscription service is losing more than $1 billion per year, according to an anonymously sourced report by The Information published Thursday. The tech giant is spending around $4.5 billion on content annually, down from $5 billion in past years, according to the article. Apple TV+ — which features virtually an all-original lineup — has about 45 million subscribers, per the report.
Reps for Apple did not respond to a request for comment.
Of course, $1 billion in annual losses are practically a rounding error for Apple in the context of its overall business, which is mostly fueled by iPhone sales. Apple generated $391 billion in revenue and posted a net profit of $93.7 billion for its fiscal year ended in September 2024.
The company does not disclose financial or subscriber metrics for Apple TV+. The streaming business is part of Apple’s Services segment, which includes Apple Music, the App Store and other lines of business. Revenue in the services segment hit $26.3 billion for the year-end 2024 quarter, up 14% year over year.
Shows on Apple TV+ include Emmy-winners “Ted Lasso” starring Jason Sudeikis (recently renewed for Season 4) and “The Morning Show,” as well as “Severance,” “Silo,” “Shrinking,” “Bad Sisters,” “Slow Horses,” “Disclaimer,” “Presumed Innocent,” “Hijack,” “Loot,” “Palm Royale” and “Masters of the Air.”
Movies on the service include Martin Scorsese’s “Killers of the Flower Moon” and the Oscar-winning “CODA,” as well as “Fly Me to the Moon,” starring Scarlett Johansson and Channing Tatum; “The Family Plan,” starring Mark Wahlberg and Michelle Monaghan; action-comedy “Wolfs” starring George Clooney and Brad Pitt; and “The Instigators” starring Matt Damon and Casey Affleck. Apple TV+ is also the home of “Friday Night Baseball,” a weekly MLB double-header available in the U.S. and other countries with no local broadcast restrictions.
Apple TV+ in the U.S. costs $9.99/month (or $99.99/year). Among the major subscription streaming services, it’s the only one that does not offer a reduced-price ad-supported tier. Apple TV+, which launched in November 2019, is available in more than 100 countries and regions.
It’s unclear what percentage of the 45 million Apple TV+ users, as claimed in the Information report, are paying $10 per month — and how many are on discounted or free accounts. For example, T-Mobile bundles Apple TV+ for no extra charge on its top-tier unlimited wireless plans (although under such arrangements, the distributor typically pays the content provider a per-sub wholesale rate). Meanwhile, Comcast sells a bundle with Apple TV+, Peacock and Netflix for $15 per month to qualifying customers. In addition, Apple offers free three months of Apple TV+ to buyers of new iPhones, iPads, Apple TVs or Macs. The upshot is that Apple TV+’s monthly average revenue per user is certainly less than $10.
(Pictured above: Adam Scott in Apple TV+ original series “Severance”)
