The Information: Apple TV+ loses over $1 billion every year

Apple TV+ reached 45 million subscribers in 2024, but remains Apple's only loss-making subscription service, losing more than $1 billion each year, The Information reports.

Apple is reducing its initial $5 billion budget for content for Apple TV+ by $500 million. Despite popular original shows like Severance, Apple TV+ reaches less than 1% of all streaming viewers each month, compared to 8.2% for Netflix.

Apple TV+ was created primarily to keep users in the Apple ecosystem. Netflix co-chairman Ted Sarandos shared his thoughts on Apple TV+'s strategy in an interview with Variety this week, noting, "I don't understand it other than as a marketing strategy, but they're really smart people. Maybe they see something that we don't."

Apple TV+ is part of the company's larger services business, which brings in billions of dollars each year from iCloud Plus, App Store purchases and search advertising. However, other services such as Apple News Plus, Fitness Plus and Apple Arcade have also faced low user engagement and revenue. The company has also seen slowing growth for its Apple Music service.