Apple has finally achieved its long-held goal of launching a successful HBO-style streaming service, but the question remains: why did it take so long? The Apple TV+ service, which boasts over 45 million subscribers, is expected to debut its season finale on Thursday night. But despite its popularity among critics and enthusiasts, the true motives behind Apple’s investment in the service remain unclear.
According to a new report from The Information, Apple has been losing more than $1 billion per year on its streaming service, with some estimates suggesting that it may not be profitable for several years. This revelation raises questions about the long-term viability of Apple TV+ and whether it is simply a means for the company to boost revenue during slower iPhone sales.
Apple’s executive team has proposed various strategies for increasing engagement with users, including offering exclusive content to iPhone owners and encouraging viewers to purchase Apple devices while watching Apple TV+. However, these plans have been met with skepticism, with many experts arguing that they are unlikely to drive significant user growth or increase profits.
Even Netflix co-CEO Ted Sarandos has expressed confusion about Apple’s strategy, attributing it to a “marketing play” rather than a genuine attempt to create a sustainable business model. With Tim Cook pushing the service to be more cost-effective, it remains to be seen whether Apple TV+ will ultimately prove profitable or become a financial drain on the company.
As the service continues to struggle with profitability, fans and critics alike are eagerly awaiting the release of highly anticipated shows like “The Studio” starring Seth Rogen and “F1” starring Brad Pitt. If Apple can deliver on its promise of quality content and sustainable growth, it may yet prove that its investment in Apple TV+ was worth the wait.
Source: https://www.businessinsider.com/severance-hit-apple-tv-strategy-streaming-bet-2025-3