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Apple TV+: Tech giant losing over $1 billion a year on streaming, lags behind Netflix, Disney Plus in subscription figures

Apple's streaming platform is losing over $1 billion a year despite being the home to hit shows like Severance and Ted Lasso.

Severance on Apple TV+.

The streaming platform Apple TV+ is home to plenty of critically acclaimed shows such as Ted Lasso, Severance, Silo and The Morning Show. Though the quality it seems to be producing, Apple is losing a huge chunk of their revenue, almost close to $1 billion every year, according to a report in media company The Information.

Started in 2019, Apple TV+ took its time to build its catalogue of movies and shows. Its first original show was For All Mankind, starring Joel Kinnaman, Michael Dorman, Wrenn Schmidt and Krys Marshall. It debuted on the streaming service in November 2019 and was a hit in the eyes of both the audience and critics. However, the company doesn’t reveal any viewership data on the streamer.

As per Reuters, while Apple spent more than $5 billion a year on content since the launch of Apple TV+ in 2019, they cut it down to about $500 million in 2024, the report said. While Apple TV+ doesn’t share subscription figures, as per an estimate done by Visible Alpha, it has 40.4 million subscribers till the end of 2024. Corresponding figures for Netflix stands at 301.63 million and Disney+ has 124.6 million users.

According to The Information, Apple is losing a lot of money while trying to run their streaming service. The Information reported that all media companies in the market trying to run a streaming service are trying to cope with losses. Apple’s primary income is not their streaming service; it’s the revenue they get from selling gadgets all over the world. Hence, it is not that susceptible to losses incurred by streaming as compared to other streaming platforms.

It’s surprising to see the position Apple finds them in after Severance’s huge success. The show brought in 2 million subscribers in February after its release, making it the best-performing show on the streaming platform. Ted Lasso also got the nod for a fourth season after gaining huge viewership in the first three seasons.

Apple TV+ is currently gearing up for The Studio starring Seth Rogen, Your Friends and Neighbours starring John Hamm and The Stick starring Owen Wilson.

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