Apple’s streaming platform, Apple TV+, is losing an estimated $1 billion annually due to increased competition in the market. Despite investing over $5 billion since its launch in 2019, the service has seen its spending on content decrease dramatically from $5 billion to just $500 million last year.
The decline comes as other media giants are focusing on profitability and cutting back on spending. Apple’s move to partner with Netflix and Comcast’s Peacock to offer bundled services may not be having the desired effect, according to data compiled by Antenna, which shows that Apple TV+ has the highest churn rate among major streaming platforms.
However, Apple TV+ remains committed to producing high-quality content, including award-winning series like “Severance,” “Shrinking,” and “Ted Lasso.” The platform has earned over 2,500 nominations and 538 wins, according to CEO Tim Cook. Analysts estimate that the service has around 30-40 million subscribers.
Unlike its competitors, Apple’s strategy is focused on being a creative storyteller rather than achieving mass appeal. “Apple’s streaming service never set out to be No. 1,” says Santosh Rao, head of research at Manhattan Venture Partners. “They’re more focused on telling the stories they want to tell.” Despite this, Apple reported record-high services revenue in its latest earnings call, with $26.34 billion generated from businesses like Apple TV+, the App Store, and Apple Music.
Source: https://finance.yahoo.com/news/apple-is-reportedly-losing-1-billion-a-year-on-its-streaming-service-as-churn-levels-increase-172901811.html