Apple TV+: Is It Costing Apple $1 Billion a Year?

A recent report by The Information suggests that Apple’s streaming service, Apple TV+, may be losing the tech giant over $1 billion annually. This revelation offers a rare glimpse into the financial performance of Apple’s content division, which is typically shielded from public scrutiny.

Apple, under the leadership of CEO Tim Cook, has historically been tight-lipped about the specific financial performance of Apple TV+. The streaming service’s revenue is bundled with other services like Apple Music and iCloud storage under the “Services” category in Apple’s quarterly earnings reports. While the Services sector has shown strong growth, with a 14% year-over-year increase to $26.1 billion during the holiday quarter, this report indicates that Apple TV+’s losses are being offset by the success of these other services.

The report also sheds light on Apple TV+’s subscriber base. According to The Information, Apple TV+ boasts 45 million subscribers. This figure positions Apple TV+ between Peacock (36 million subscribers) and Hulu (53 million subscribers) in the competitive streaming landscape.

The success of shows like “Severance” may have contributed to a recent increase in subscribers. Nielsen data indicates that Apple TV+ subscribers have watched over 3 billion minutes of “Severance” since the return of its second season. Other popular shows on the platform include “Ted Lasso,” “Mythic Quest,” and “Shrinking.”

Despite the reported losses, Apple’s robust financial position, with a net cash reserve of approximately $57 billion, allows the company to invest in streaming content if it chooses to do so. As of Thursday, Apple’s shares were up 0.75%, trading at $216.78 per share, solidifying its position as the world’s most valuable company with a market capitalization of $3.26 trillion.