Apple TV+ is reportedly losing $1 billion every year

Apple TV+ has gained significant cultural momentum with the success of hit shows like Severance, but despite its growing subscriber base, the streaming service remains unprofitable. A recent report claims that Apple is losing over $1 billion annually on the platform, highlighting the challenges of competing in the saturated streaming industry.

Apple TV+ still operates at a loss despite growth

According to a report by The Information, Apple TV+ had 45 million subscribers last year, yet it continues to lose money. While the service has seen recent boosts in sign-ups—such as two million new subscribers in a single monthduring Severance’s second season—this growth has not yet translated into profitability.

Apple’s strategy has focused on high-budget content, including award-winning productions like CODA, the first streaming movie to win the Best Picture Oscar. However, the company has reportedly cut budgets on certain projectsafter theatrical disappointments, shifting its focus to direct-to-streaming releases.

Why Apple’s losses may not be a major issue

Despite losing $1 billion annually, Apple’s financial position allows it to sustain these losses without significant impact. The company generated $124 billion in revenue last quarter alone, with $36 billion in profit. Compared to its overall business, Apple TV+ represents a relatively small investment.

Most streaming platforms operate at a loss in their early years, prioritizing content acquisition and subscriber growthover immediate profitability. Apple appears willing to absorb these losses as it continues expanding its library and attracting new users.

While the future of Apple TV+ remains uncertain, its deep financial resources give it an advantage over competitors that may struggle to sustain similar losses long-term.