Apple TV+ Reportedly Losing Over $1 Billion Annually Despite Award-Winning Content

Apple’s ambitious push into the streaming industry continues to be costly. According to a new report from The Information, Apple TV+ is losing over $1 billion per year, even after making adjustments to its content budget. Since its 2019 launch, Apple TV+ has spent over $5 billion annually on content, aiming to compete with industry giants like Netflix, Disney+, and Amazon Prime Video. However, in 2023, Apple reportedly trimmed its streaming budget by $500 million—a sign that even one of the world’s wealthiest companies is looking to cut costs in an increasingly challenging streaming market.

Apple TV+ Struggles to Turn a Profit

Apple’s financial losses in streaming are not unique. Major entertainment companies, including Disney, Warner Bros. Discovery, and Paramount, have lost billions trying to establish their streaming services. However, unlike these companies—many of which have had to raise subscription prices and cut content spending to reduce losses—Apple has the financial power to absorb these hits.

In fiscal year 2024, Apple generated a staggering $391 billion in revenue, with its Services division—home to Apple TV+, Apple Music, iCloud, and the App Store—bringing in $96 billion. Despite these massive numbers, Apple does not disclose specific revenue or subscriber figures for Apple TV+, leaving industry analysts to speculate about its performance.

Apple TV+ Gains Momentum With Original Hits

Although Apple’s streaming service is losing money, it has seen steady growth in subscribers thanks to its high-quality original programming. The platform has delivered several critically acclaimed series, including The Morning Show, Ted Lasso, Severance, Shrinking, etc.

According to research firm Antenna, the release of Severance Season 2 alone added 2 million new subscribers in February 2025, making it the best-performing show in TV+ history. The show’s executive producer and director, Ben Stiller, recently appeared at SXSW alongside Apple executive Eddy Cue to discuss its success and the streaming platform’s future.

Apple CEO Tim Cook frequently highlights Apple TV+ as an essential part of the company’s business strategy, often touting the awards and critical recognition its shows receive. However, despite its high-profile projects and prestigious wins—including multiple Emmy Awards for Ted Lasso—the service has yet to become a major revenue driver for Apple.

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Can Apple TV+ Become Profitable?

With Apple’s vast financial resources, the company is unlikely to abandon streaming anytime soon. However, the streaming industry remains highly competitive, with rivals like Netflix and Disney+ already pushing towards profitability.

To turn the tide, Apple may need to expand its subscriber base, explore advertising-supported tiers, or bundle the streaming with more services to increase its appeal. For now, losing over $1 billion annually is a hefty price for Apple’s continued ambition in streaming. The question remains: how long will Apple tolerate these losses before making major changes?

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