Apple’s streaming service is losing around $1 billion a year, according to a new report from The Information. Apple subscription is reportedly the only subscription service that isn’t generating a profit.
Despite hit original shows like “Severance,” Apple TV+ captures less than 1% of the total monthly streaming sales viewers, as opposed to Netflix’s 8.2%, according to data from Nielsen cited by The Information.
According to the report, Apple TV+ has around 45 million subscribers. However, it was also noted that Apple TV+ was created mainly to keep people in the Apple ecosystem, and the $1 billion loss is a small matter for the company 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.
READ: Apple to pay $95 million to settle Siri lawsuit (January 3, 2025)
Apple TV+ is part of the company’s broader services business, which makes Apple billions of dollars each year through iCloud+, App Store purchases, and search advertising. However, Apple Music, which reportedly reached 100 million users on subscriptions and free trials last year, has seen a slowdown in growth.
Apple News Plus, Fitness Plus, and Apple Arcade also “struggle with low usage and profits,” while sales of digital books have taken a dip as well,
Apple TV+ is home to a number of shows, including Emmy Winners “Ted Lasso”, 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 streaming 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.
An Apple TV+ subscription in the U.S. costs $9.99/month (or $99.99/year). Unlike most other subscription TV services, it does not offer a reduced-price ad-supported tier which might contribute to its losses.