Tech giant Apple’s video streaming business, Apple TV+ is incurring losses worth a billion dollars each year, according to a Reuters report.
Citing company sources, the report claimed that Apple has been reporting massive losses, forcing it to cut its spending. The tech giant is now spending $4.5 billion annually, down from $5 billion spent in the past few years since its launch in 2019. Apple TV+, which features an all-original lineup like The Morning Show, Ted Lasso, and Severance among others, has nearly 45 million subscribers and the video streaming service is available to people in more than 100 countries and regions.
Apple lags behind rivals
While the shows are garnering record viewership, the revenue of the company remains subpar. In terms of subscriber base, it is now lagging behind rivals like Netflix, Disney+, and Amazon’s Prime Video.
Citing the latest data by Visible Alpha, Reuters report mentioned that industry leader Netflix had 301.63 million subscribers, while Disney+ had 124.6 million users followed by Warner Bros Discovery at 116.9 million. While Apple does not break down its subscriber base for Apple TV+ separately, it is estimated to have reached 40.4 million by the end of 2024.
A Hindustan Times report suggested that in February, an increase of two million subscribers was estimated for Apple TV+ thanks to its show ‘Severance’. The report further added that while the tech giant does not reveal its numbers and viewership figures for shows consistently, Severance became its most-watched show ever, and logged in over three billion streamed minutes.
As competition heats up in the streaming industry, media companies are now trying to appeal to customers by increasingly bundling their services at discounted rates. Apple TV+ costs $9.99 per month in the US when bought separately, however, it is now part of the bundling services offered by Comcast that combines the service with Peacock and Netflix at $15 per month.
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider
Telegram | Facebook | Instagram
Call: +91 9624421555 / +91 9624461555