Apple is losing $1 billion a year on Apple TV+ due to low viewership

Citing two unnamed sources, the report also revealed that the number of Apple TV+ subscribers will reach about 45 million by 2024. Meanwhile, Netflix has 301.63 million subscribers and is expected to spend about $18 billion on content in 2025, compared to Apple TV+ spending more than $5 billion per year since its launch in 2019.

Quality content but Apple TV+ has yet to attract many subscribers. Screenshot.

In 2024, CEO Tim Cook decided to cut Apple TV+'s content budget by $500 million, as high-budget films failed to deliver the expected results. A prime example is Argylle, a $200 million film that failed to make a breakthrough in subscribers or views.

Previously, after the success of CODA, the Apple TV+ film that won Best Picture at the 2022 Oscars, Apple began to pay more attention to spending on this platform. However, the report pointed out that Apple TV+'s lavish spending, such as spending hundreds of thousands of dollars per flight to bring actors and producers to promotional events, has caused Apple's finance department to ask for more savings starting in 2023.

Despite its high-quality content, Apple TV+ has struggled to attract viewers. According to Nielsen, as of February 2025, Apple TV+ accounted for less than 1% of total TV viewing. Meanwhile, Netflix reached 8.2% and Max (HBO Max) reached 1.2%.

Apple has also been criticized for spending little on advertising. For example, in October 2019, Apple spent $14.9 million to promote Apple TV+, while spending $28.6 million to promote the iPhone.

It’s no surprise that Apple TV+ is losing money, as most streaming services take years to become profitable. According to internal business plans, Apple TV+ is expected to lose $15-20 billion in its first 10 years.

By comparison, Disney+ also lost $11.4 billion from its launch in late 2020 through April 2024, but turned a profit for the first time in the fiscal quarter ending June 29, 2024.

Still, Apple is a nearly $4 trillion company, with a net income of $93.7 billion in its most recent fiscal year, so losing $1 billion a year from Apple TV+ is still manageable.

Currently, many of Apple TV+'s competitors are profitable thanks to advertising and subscription price increases, while Apple TV+ has no advertising and will not increase its price until late 2023.

Cao Phong (according to Information, Arstechnica, CBS)