The Information recently said that Apple TV+ is losing about $1 billion in revenue every year.
The streaming service is apparently losing when it comes to profitability, as outlined by Wayne Ma. He even said that it was the only subscription service that was ‘not profitable’, with losses amounting to $1 billion per year despite having 45 million subscriptions in the last year. Apple is believed to be spending around $5 billion each year to produce content, which was subsequently reduced to just $500 million in 2024.
Ma mentioned that despite accumulating a significant number of subscribers, the audience remains ‘relatively small’. It’s less than 1 percent of the whole viewing numbers in the US. Competitors Amazon and Netflix had 3.5 percent and 8.2 percent in February. Apple CEO Tim Cook in particular scrutinized the service’s financial performance and had a discussion about the spending and budget.
