The tech giant has spent more than US$5 billion a year on content since launching Apple TV+ in 2019 but trimmed it by around US$500 million last year
[BENGALURU] Apple is losing more than US$1 billion a year on its streaming service, the Information reported on Thursday (Mar 20), citing two people familiar with the matter.
The tech giant has spent more than US$5 billion a year on content since launching Apple TV+ in 2019 but trimmed it by around US$500 million last year, the report said.
Apple did not immediately respond to a Reuters request for comment.
Apple TV+, known for original shows such as Ted Lasso, The Morning Show, Shrinking, and Severance, has lagged behind rivals Netflix, Disney+ and Amazon.com’s Prime Video in terms of subscribers.
Industry leader Netflix had a total subscriber count of 301.63 million, according to the latest data, while Disney+ had 124.6 million users followed by Warner Bros Discovery at 116.9 million.
The iPhone maker does not break down the subscribers for Apple TV+ but it is estimated to have reached 40.4 million at the end of 2024, according to five analysts polled by Visible Alpha.
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Apple TV+ productions have earned more than 2,500 nominations and 538 wins, CEO Tim Cook said in a post earnings call in January.
As competition heats up in the streaming industry, media companies are increasingly bundling their services at discounted rates to appeal to price-conscious consumers.
Apple TV+ is part of a bundle offered by Comcast that combines the service with Peacock and Netflix at US$15 per month. Apple TV+ costs US$9.99 per month in the U.S when bought separately.
The Cupertino, California-based company also bundles Apple TV+ with services such as iCloud, Apple Music and others under the Apple One program. REUTERS
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