Apple TV+ is losing more than $1.5 billion a year
Apple's video streaming service, Apple TV+, is losing $1 billion a year, according to a report from tech news site The Information.
Apple Streaming Losses Top $1 Billion a Year — The Information
Report: TV+ Losing $1 Billion Annually as Apple Services Falter - MacRumors
https://www.macrumors.com/2025/03/20/report-tv-losing-1-billion-annually/
Apple Reportedly Loses $1 Billion Annually on Apple TV+
https://www.thewrap.com/apple-loses-1-billion-annually-apple-tv-plus/
On January 30, 2025, Apple reported its financial results for the first quarter of 2025 (October to December 2024). Revenues increased 4% year-on-year to $124.3 billion (approximately 8.5 trillion yen), a record high. The breakdown of revenue was $97.66 billion (approximately 14.6 trillion yen) from the product division and $26.34 billion (approximately 3.9 trillion yen) from the service division.
Apple announces first quarter results for fiscal 2025, reports record sales despite iPhone struggles - GIGAZINE
However, according to The Information, Apple TV+, part of the services division, is the only subscription service that is not profitable. The number of subscribers is said to be about 45 million as of 2024, but it is still losing more than $1 billion a year.
The Information reports that Apple TV+'s viewership remains relatively small, accounting for less than 1% of the total viewership of streaming services in the U.S. As of February 2025, Netflix's viewership was 8.2% of the total viewership, and Amazon Prime Video's was 3.5%.
Since the service launched in 2019, Apple TV+ has had an annual budget of $5 billion (about 740 billion yen), but under pressure from CEO Tim Cook and other executives, the company plans to cut that by $500 million (about 73 billion yen), according to The Information.
In particular, Cook reportedly had questions about the movies being produced for Apple TV+. For example, ' Argyle ' is a spy action comedy starring Henry Cavill and Dua Lipa , which cost $200 million to produce. However, the number of views for this movie has been lower than expected, and it has not contributed to the increase in Apple TV+ subscribers, which is why Cook expressed his dissatisfaction.
Apple's original business plan projected losses of $15 billion to $20 billion over the first 10 years. While large losses are common in the streaming industry, this marks a major turning point for the company, which has been strict on financial discipline.
According to The Information, one of the biggest production costs is the cost of traveling by private jet for the lead actors. Since a single flight can cost hundreds of millions of yen, Apple is reportedly negotiating a contract with a private jet charter company.
'Apple's overall corporate profits are so large that losses from Apple TV+ are easily tolerated, but Apple TV+ itself has not gained widespread support,' The Information said.
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