Apple's Streaming Service: A $1 Billion Hole in the Wallet

Ladies and gentlemen, let me tell you something: Apple is losing a BILLION DOLLARS a year on its streaming service, Apple TV+. That's right, folks, a cool $1 billion down the drain. But before you start panicking, let me break it down for you.

First things first, Apple TV+ is the only part of Apple’s services business that’s not turning a profit. But here’s the kicker: Apple is worth nearly $4 trillion and made $93.7 billion in net income during its most recent fiscal year. So, a $1 billion loss on Apple TV+ is practically a rounding error for them. They can afford to play the long game here.

Now, let’s talk about the competition. Netflix, for instance, has 301.63 million subscribers and expects to spend $18 billion on content in 2025. Disney’s direct-to-consumer streaming business had operating losses of $11.4 billion between the launch of Disney+ in fall 2020 and April 2024. But guess what? Disney’s streaming business became profitable for the first time in its fiscal quarter ending on June 29, 2024. So, it’s not all doom and gloom for Apple TV+.

But why is Apple TV+ hemorrhaging money? Well, it’s all about the content. Apple TV+ has typically spent over $5 billion annually on content since 2019. Last year, though, Apple CEO Tim Cook reportedly cut the budget by about $500 million. But even with the cutbacks, the service is still losing money. And let’s not forget the lavish perks for actors and producers. Apple paid “hundreds of thousands of dollars per flight” to transport Apple TV+ actors and producers to promotional events. That’s Hollywood for you!

But here’s the thing: Apple TV+ is expected to lose $15 billion to $20 billion during its first 10 years. That’s a lot of red ink, but it’s also a common trajectory for streaming services. Disney’s streaming business took years to turn a profit, and so did Netflix. So, Apple TV+ is following a similar path to other successful streaming services.

Now, let’s talk about the viewership. Apple TV+ garners less than 1 percent of monthly TV viewership typically, compared to Netflix's 8.2 percent and Max's 1.2 percent in February 2025. That’s a tough pill to swallow, but it’s not all bad news. Apple TV+ has some prestige content, like the Oscar-winning “CODA” and the Emmy-winning “Ted Lasso.” So, there’s hope.

But here’s the million-dollar question: What’s Apple going to do about it? Well, they could introduce ads or increase prices, but that’s not Apple’s style. They could also cut back on content spending, but that might hurt their chances of attracting more subscribers. So, it’s a tough call.

But here’s what you need to know: Apple TV+ is part of a broader strategy to diversify revenue streams and reduce reliance on hardware sales. Services represented 21 percent of Apple’s revenue in its most recent earnings report. So, even if Apple TV+ is not currently profitable, it’s part of a bigger picture.



So, what’s the bottom line? Apple TV+ is losing money, but it’s not the end of the world. Apple can afford to play the long game, and they have a history of turning things around. So, don’t panic, folks. Apple TV+ might be in the red now, but it’s got the potential to be a big winner in the future. Stay tuned, and remember: this is a no-brainer!