Apple TV+ loses $1 billion annually amid slowing services growth

Apple’s streaming ambitions are hitting turbulence according to a new report from The Information. Despite boasting a growing library of original content and some critical wins, Apple TV+ is reportedly bleeding over $1 billion a year making it the only unprofitable service in Apple’s lineup.

Subscriber numbers have reached around 45 million, but internal concerns are mounting about the platform’s limited reach. Viewership remains a fraction of what rivals like Netflix and Amazon command, with Apple TV+ capturing less than 1% of total U.S. streaming time.

The company has scaled back its content budget slightly in 2024, after previously pouring in over $5 billion a year since launch. Sources say CEO Tim Cook has taken a more hands-on approach, questioning the value of big-budget projects like Argylle, a $200 million action-comedy that failed to move the needle in viewership or subscriptions.

This closer oversight marks a shift from Apple’s earlier approach, when executives largely shielded the streaming division from financial scrutiny. That hands-off era ended after key leadership changes, including the departure of longtime services executive Peter Stern in early 2023.

Beyond streaming, the rest of Apple’s services ecosystem is showing signs of fatigue. Apple Music’s subscriber growth has slowed to a crawl, and its profitability is undercut by high royalty payouts. Other offerings like Apple Arcade, Fitness+, and News+ are reportedly struggling with low engagement and minimal revenue, often surviving only due to bundling under Apple One.

Apple’s services division still raked in more than $96 billion last year and remains its most profitable category thanks to strong margins from iCloud+. But without major changes, Apple’s broader media strategy could face deeper questions not just about profits, but about relevance in an increasingly crowded and competitive landscape.