Apple TV+ is losing more than $1 billion every year, even after cutting its content budget to $4.5 billion in 2024.
While its competitors, led by Netflix with 301 million subscribers, are doing well, Apple’s platform is far behind with an estimated 45 million users.
The company’s strategy—focusing solely on original content rather than licensing popular films and shows—hasn’t delivered the subscriber growth it hoped for. Even with over 2,500 award nominations and multiple wins, Apple TV+ still struggles to justify its costs.
Since its launch in 2019, Apple has spent over $5 billion annually on content, banking on high-budget productions to lure in viewers. Yet, despite big hits like Ted Lasso, Severance, and The Morning Show, the platform commands less than 1% of total U.S. streaming viewership.
As of February, Netflix held 8.2% of the market, Amazon Prime Video 3.5%, while Apple TV+ barely registered. The competition isn’t slowing down either. With bundles and assertive pricing strategies, rivals are making it harder for Apple to carve out a significant audience.
Internally, CEO Tim Cook has reportedly started questioning the platform’s financial viability, particularly its costly productions that fail to drive subscriber growth. A glaring example is Argylle, a $200 million spy comedy that flopped, raising doubts about Apple’s content strategy.
Apple had initially planned for Apple TV+ to run at a loss for a decade, expecting total losses between $15 billion and $20 billion. But with growing internal issues, that patience is wearing thin. In 2022, Cook began pushing for tighter financial controls, even cutting back on extravagant spending, such as private jet travel for Hollywood talent.
Nonetheless, Apple isn’t giving up yet. The company is leveraging its Apple One bundle, which includes iCloud+, Apple Music, and other services, to keep users engaged. However, reports suggest many subscribers are there for iCloud+, not Apple TV+. Without bundling, the numbers might look even worse.
Apple must now decide; double down on streaming and take on Netflix head-to-head or rethink its approach entirely.
