Apple TV+’s 45 million subscribers in 2024 pale in comparison to Netflix's 302 million at the end of last year, highlighting a significant gap in the streaming market. The Information reports Apple is incurring a $1 billion annual loss on its streaming service, a figure that reflects its substantial yearly investment in content. Since its launch in 2019, Apple has reportedly spent $5 billion annually on Apple TV+ programming, a figure recently reduced by roughly $500 million. This makes Apple TV+ the only division within Apple not generating a profit.
Despite a smaller content library than competitors, Apple TV+ has garnered significant critical acclaim. CEO Tim Cook noted in a January earnings call that its original programming, including Ted Lasso, The Morning Show, Shrinking, and Severance, has achieved over 2,500 nominations and 538 wins. However, Apple’s strategy extends beyond simply creating a profitable streaming service. The integration of Apple TV+ into the wider Apple ecosystem – encompassing iCloud+, App Store purchases, and advertising – is crucial to its long-term vision, as these contribute billions to Apple's annual revenue. The company’s approach differs greatly from rivals such as Amazon, which primarily focuses on its core e-commerce operations.