Apple TV+, the premium streaming service from tech giant Apple, is facing significant challenges despite its star-studded lineup and hefty production budget. According to a new report, the platform is losing around $1 billion annually, making it the only Apple subscription service that isn’t profitable.
The main culprit behind this financial struggle is Apple’s massive production budget, which reportedly exceeds $5 billion each year. However, many of these productions have failed to deliver expected box office results, squandering significant resources on low-performing movies like the spy disaster “Argylle.” The platform’s inability to attract and retain viewers also contributes to its losses, with shows often failing to resonate with audiences.
Even with its high-profile talent lineup, including big-name stars like Natalie Portman and Harrison Ford, Apple TV+ has struggled to find consistent hits. While some shows, like “Severance,” have performed well, others have languished at the bottom of the platform’s viewership charts. The lackluster performance of recent releases like “Dope Thief” and “Prime Target” raises concerns about the service’s long-term viability.
However, Apple TV+ is reportedly taking steps to address its struggles. The production budget has been slashed by $500 million annually, and management has become more stingy with lavish talent expenses. With a renewed focus on producing quality, prestige-driven content that resonates with audiences, Apple may be able to turn the ship around and emerge as a viable competitor in the streaming wars.
Source: https://www.theguardian.com/tv-and-radio/2025/mar/21/apple-show-audience