Apple is losing more than $1 billion a year on its streaming service Apple TV+, the Information reported today, citing two people familiar with the matter.
Apple has spent more than $5 billion a year on content since launching Apple TV+ in 2019 but trimmed that budget by around $500 million last year, the report said.
Apple has a literal 100 billion in cash reserves. They’ll be just fine with losing a billion a year while becoming THE source for premium TV content
Apple TV+ is a great service, good app interface and some decent series there too. Too bad I had to get rid of it due to the current US administration and their policies. Apart from the default apps I switched everything to European and/or non-profit open source alternatives, which was surprisingly easy.
good app interface
Maybe it’s because I don’t use any other Apple products, but I struggle with its interface
Just looking at the numbers, they are spending $5G and losing $1G. Their subscriptions are growing. So if they grow another 25% they are making money. (Ignoring infrastructure costs which are most likely a tiny fraction of per-user revenue.) They also just launched an Android app. So I think their story is looking pretty good. Not even considering that it raises the value of Apple TV hardware, their other devices and gives them more lock-in for customers in general that seems like a great investment they made.
That’s sad to hear. The content on there is amazing for the most part. But, apparently, not cluttering it up with a bunch of junk is actually costing them somehow.
It’s a loss leader. They make money selling the hardware and use AppleTV as a feature. That’s why the content is so good; it has to be to make it a compelling addition to their existing products.
That would make sense if it wasn’t available on every other platform.
It’s still good marketing. People will associate a good service, with good/great shows/movies and without all the fluff that Netflix has, with a good company.
Netflix is just as good as Apple and doesn’t annoy me with ads, failed skips and subscription upsells so I don’t see that working, personally.
