Apple’s video streaming business is struggling, with the company reportedly losing over $1 billion per year on its premium subscription service, Apple TV+. Despite this, Apple still manages to generate significant revenue from other sources, including Apple One subscriptions and hardware sales. The lack of transparency around Apple’s content development costs makes it difficult to determine whether Apple TV+ is a viable business strategy.
Critics argue that Apple’s focus on high-quality content may not be enough to justify the service’s premium pricing. With a limited offering of shows, some users find it difficult to keep their subscription active year-round. Additionally, the company’s decision to release new content too frequently can lead to user fatigue. Others point out that Apple’s ad-supported plan is missing from its lineup.
Despite these challenges, Apple remains confident in its streaming service, citing potential benefits such as improved brand loyalty and increased device replacement frequency. However, with a net profit of $93 billion, losing $1 billion per year on Apple TV+ seems like a significant risk.
Source: https://variety.com/2025/digital/news/apple-tv-plus-streaming-losses-1-billion-per-year-1236344052