Apple TV+ was in the game of the streaming service for almost five years, constantly building its bookshop with prestigious dramas and award -winning successes. But behind the polished success, the financial reality is that Apple is losing more than $ 1 billion per year in his streaming service.
This is despite the technology giant that spends over $ 5 billion a year on the contents since its 2019 launch, although last year they reduced by about $ 500 million.
Compared to traditional media companies, Apple’s losses may seem equal to the course. The Hollywood Studios have burned billions by launching their platforms, although some are finally making their way to profitability.
Apple, on the other hand, does not seem to crumble. With $ 391 billion in revenue for the tax year 2024, the losses of Apple TV+ are more a drop in the bucket than an existential crisis.
However, Apple TV+ has made considerable progress, resulting in acclaimed by criticism as The morning show, Ted Lasso, Thank youAND Severance. Those last, produced and directed by Ben StillerHe has just increased the platform of 2 million new subscribers in February.
Stiller and Apple Svp Eddy Cue have even gone up on the Sxsw stage this month, highlighting Severance Like the most performance of Apple TV+performance ever.
CEO of Apple TIM Cook He loves to highlight Apple TV+ wins investors calls, but the company maintains its actual numbers under the compresses. The streaming service is only a piece of the Division of Apple services, which also includes Apple Music, Arcade, Fitness+, News+, Books, The App Store, Icloud, Apple Care and Apple Pay.
The entire sector collected $ 96 billion in 2024, making it one of the rapid growth flows of Apple growth.
So, Apple TV+ is it a failure? Not really, not even with losses from billions of dollars, Apple is playing a long game, in which streaming is less on immediate profitability and more to keep users blocked in the Apple ecosystem.
It is a strategy that I am sure that it will pay in the end. But for now, Apple seems very well to eat the cost.
Source: information
By Joey Gour
Source: Geek Tyrant
Lloyd Grunewald is an author at “The Fashion Vibes”. He is a talented writer who focuses on bringing the latest entertainment-related news to his readers. With a deep understanding of the entertainment industry and a passion for writing, Lloyd delivers engaging articles that keep his readers informed and entertained.
