Apple TV+ Faces $1 Billion Annual Losses Despite Popular Shows
New Delhi (The Uttam Hindu): Apple TV+, the tech giant’s video streaming service, is reportedly incurring losses of around $1 billion each year, according to a Reuters report. Citing company sources, the report reveals that Apple has been facing substantial financial setbacks, leading the company to cut its annual spending on the service to $4.5 billion, down from $5 billion in previous years since the service launched in 2019. Despite this, Apple TV+ continues to attract attention with its all-original content lineup, including popular shows like *The Morning Show*, *Ted Lasso*, and *Severance*. The service now boasts nearly 45 million subscribers across more than 100 countries and regions.
Apple TV+ Trails Behind Rivals
While Apple’s original shows have garnered significant viewership, the company still lags behind its rivals in terms of revenue and subscriber base. According to the latest data from Visible Alpha, Netflix leads the pack with 301.63 million subscribers, followed by Disney+ with 124.6 million, and Warner Bros Discovery at 116.9 million. In comparison, Apple TV+ is estimated to have 40.4 million subscribers by the end of 2024.
Reports indicate that *Severance*, one of the platform’s breakout hits, helped Apple TV+ gain an additional two million subscribers by February 2024. However, despite *Severance* being its most-watched show, Apple does not consistently release detailed viewership or subscriber data.
Bundling Services to Compete in a Crowded Market
As the streaming industry becomes increasingly competitive, media companies are turning to bundling services to attract customers. Apple TV+ costs $9.99 per month in the US when purchased individually, but it is also available as part of a bundled package with Comcast, combining it with Peacock and Netflix for $15 per month.
With a growing emphasis on cost-effective bundles, Apple TV+ faces an uphill battle to catch up with its larger rivals in a fiercely competitive streaming landscape.
