Apple is Losing $1B a Year on Streaming

Apple’s Billion-Dollar Stream Problem

Apple TV+ is losing over $1 billion a year, even as the company rakes in huge profits from everything else. It’s the only Apple service running in the red.

Apple launched the platform in 2019, entering a competitive space full of giants like Netflix and Disney+. But five years later, the service hasn’t turned a profit. Apple may have the cash to afford losses, but streaming was supposed to strengthen its services business.

Millions of Users, But Still Behind

Apple TV+ has reached about 45 million subscribers, which sounds impressive until you compare it to the competition. Netflix leads with over 300 million subscribers worldwide.

Even newer players like Disney+ and Max have pulled ahead. Trailing in the streaming race is a surprise for a brand as powerful as Apple. Apple doesn’t reveal official user numbers, making it harder to measure momentum. Still, the gap is clear.

Big Awards, Low Viewership

Apple TV+ is packed with critically acclaimed shows like “Ted Lasso” and “Severance,” earning over 2,500 awards and nominations. Quality isn’t the issue.

The challenge? Not many people are watching. According to Nielsen, Apple TV+ captures less than 1% of monthly TV viewership, far behind Netflix and even Max. Prestige content can only do so much when few people tune in.

A Streaming Budget That Rivals Hollywood

Apple TV+ isn’t short on spending. Since 2019, Apple has poured more than $20 billion into content, aiming to create top-tier shows and films.

In 2024 alone, the budget was about $4.5 billion. That’s after a $500 million cut from the previous year. These numbers put Apple TV+ in the same league as Netflix, which plans to spend $18 billion in 2025. But big budgets haven’t translated into big returns.

First-Class Flights, Steep Costs

Apple reportedly incurred significant expenses on promotional travel for actors and producers, leading to internal scrutiny over such costs.

However, this was out of the ordinary for Apple, which is known for its tight operations. The finance team eventually pushed back, asking executives to cut travel costs and look for better deals. Lavish spending on travel and perks may have added to the overall loss, raising eyebrows even at the top.

A Marketing Push That Never Landed

Apple’s marketing machine is famous, but Apple TV+ hasn’t gotten the same spotlight as the iPhone. Back in 2019, Apple spent nearly twice as much promoting the iPhone.

Marketing matters, especially in a crowded streaming market. If people don’t know what’s on the service, they won’t subscribe. Limited advertising may have made it harder for Apple TV+ to build buzz.

Expensive Flops Raise Red Flags

Apple has made some bold bets on blockbuster content. One of the biggest was “Argylle,” a $200 million spy movie that fizzled fast.

Despite its cost, the film didn’t deliver a spike in subscribers or viewership. That got Apple CEO Tim Cook asking tough questions about spending. Apple wants hits that build brand loyalty, but when big-budget titles don’t pay off, it puts pressure on the entire strategy.

Built to Sell iPhones, Not Subscriptions

Apple TV+ wasn’t created to beat Netflix. From the beginning, it was supposed to make the Apple ecosystem more appealing, more about loyalty than dominance.

The idea was simple: great content makes people love their Apple products more. But insiders now say Apple isn’t sure if that’s happening. No clear data shows that people buy more devices because they watch Apple TV+.

No Ads, No Hikes, No Profit

While Netflix and Disney+ added ads and raised prices, Apple TV+ stayed simple. It has no ads, and prices haven’t jumped since fall 2023.

That’s good news for users but tough for business. Apple TV+ has fewer ways to make money without extra revenue from ads or hikes. Many of its rivals rely on those tools to balance the books.

The Lone Loser in Apple’s Lineup

Apple’s services unit is a cash machine. It includes the App Store, iCloud, Apple Music, and more. All of them are profitable, except for Apple TV+.

This streaming service stands out for the wrong reason. It’s the only one in the red, and that’s not the norm for Apple. While the rest of the services team brings in billions, Apple TV+ continues to drag behind. That’s a tough spot for a company used to winning.

Viewers Come and Go Quickly

Apple TV+ might attract users when it drops a hit, but it struggles to keep them. People often binge a show, cancel, and move on.

That’s a challenge in a subscription world where retention is everything. With fewer shows and a smaller library, Apple TV+ has less to keep people engaged year-round. Loyalty is hard to build when there’s not enough new content to explore.

The Bundle Boosts the Numbers

Apple One bundles Apple TV+ with iCloud, Music, and other services. Many users sign up for the cloud storage, then get TV+ by default.

Sources say Apple TV+ likely wouldn’t be profitable if it weren’t bundled. Bundling helps hide low interest but also means the service isn’t winning customers on its own. It’s not pulling its weight; it’s riding on the strength of other Apple offerings.

Other Services Struggling Too

Apple TV+ isn’t the only service that feels pressured. Apple News+, Fitness+, and Arcade are all struggling to gain traction.

Usage is low, and profits are thin. Apple even laid off workers in the News and Books department in 2024. These smaller services were meant to keep users inside the Apple world, but many are falling short. They hoped they’d grow with time, but growth has been slow.

Music Growth Is Cooling Off

Apple Music has over 100 million users, but signs show slowing down. Subscriptions and trial signups aren’t rising like they used to.

With fewer people switching phones or trying new services, Apple’s growth engines are slowing. That’s pushing more pressure onto services like Apple TV+ to deliver results. So far, streaming hasn’t filled that gap.

No Clear Data, No Clear Direction

Some former Apple TV+ staff say they didn’t know if certain business decisions were working. That includes how the app’s expansion to other devices impacted hardware sales.

If Apple can’t track results clearly, it’s hard to adjust strategy. In a fast-changing space like streaming, that blind spot can lead to missed chances. It’s not just about making shows; it’s about knowing what moves the needle.

Curious how Apple’s strategy is shifting elsewhere? Check out what’s happening with the iPhone SE launch.

Is Apple Playing a Long Game?

Even Netflix’s co-CEO says he doesn’t fully get Apple TV+’s goal. He recently joked, “Maybe they see something we don’t.”

That’s the mystery: Apple might be thinking ten steps ahead or holding on too long. Right now, Apple TV+ is well-made, award-winning, and rarely watched.

Using Apple TV? These simple hacks can totally level up your experience.

Do you think Apple should keep going or cut its losses? Drop your take below.

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