Apple TV+, which was once viewed as a high-end disruptor in the streaming sector, is currently experiencing huge financial losses. According to The Information, Apple's streaming platform loses more than $1 billion per year, making it the company's only unprofitable subscription service.
Despite its premium branding, award-winning content, and $5 billion annual production budget, Apple TV+ has struggled to establish a dominant position in the highly competitive streaming landscape.
The platform's troubles stem from various sources. With 45 million users, Apple TV+ falls behind Netflix (302 million), Disney+ (125 million), and Warner Bros. Discovery (117 million). Additionally, while being priced lower than competitors, at $9.99 per month in the US vs. Netflix's $17.99, viewership remains frighteningly low.
Apple TV+ accounts for less than 1% of overall US streaming service viewing. This shows that while subscribers exist, their interaction with the content is negligible.
Content investment has shown to be both a strength and a weakness. While Apple TV+ has attracted A-list talent (including Natalie Portman, Harrison Ford, Austin Butler, and Cate Blanchett), its biggest problem is visibility. Although shows like The New Look, Slow Horses, and For All Mankind have won praise, they have failed to achieve widespread cultural traction.
Even Ted Lasso, a dormant series, is still one of the most popular shows on the platform. Meanwhile, high-profile film projects like the $200 million Argylle have failed, highlighting Apple's difficulty in striking a balance between prestige and mainstream appeal.
In an effort to stem the financial losses, Apple reportedly cut its content budget by $500 million and reduced expenditures on luxuries like private jet travel for talent. A fourth season of Ted Lasso has also been announced, indicating a potential shift away from risky artistic projects and toward bankable hits.
However, until Apple TV+ can regularly produce and market shows that can drive long-term engagement, it will struggle to justify its billion-dollar losses in a competitive streaming market.