Apple’s popular streaming service, Apple TV+, is at risk of shutting down due to significant losses and low viewership. The service lost over $1 billion per year in 2024, with a substantial portion attributed to content expenses. Despite this, Apple welcomed around 45 million new subscribers last year.
However, the platform’s content has struggled to attract a larger audience, with Nielsen media measurement firm finding that only 1% of monthly viewership on connected televisions in the US belongs to Apple TV+. This compares unfavorably to Netflix and Amazon, which have significantly more viewership share.
Industry analysts believe Apple failed to differentiate its service from others, contributing to its lackluster performance. Horace Dediu, founder at Asymco, stated that “I don’t see its core value here,” highlighting the need for Apple to rethink its streaming strategy.
As a significant contributor to Apple’s revenue, the streaming business generated $26.3 billion in 2024, representing a 14% increase from last year. Despite this growth, experts predict that Apple TV+ will lose $15 billion to $20 billion during its first decade.
Apple is not the only major company to face similar challenges with its streaming services. Google attempted to create original content for YouTube but ultimately discontinued it in 2022. Amazon also shut down its ad-free video streaming service Freevee last year, citing a desire for a simpler viewing experience for customers.
The outcome of Apple’s decision on Apple TV+ remains uncertain, but the company has already taken steps to re-evaluate its strategy and content offerings.
Source: https://www.dailymail.co.uk/yourmoney/article-14524207/popular-streaming-service-fears-axed-ratings-losses-apple-tv.html