Apple TV Plus continues to operate at a loss, reportedly losing over $1 billion yearly despite reaching 45 million subscribers in 2024, according to The Information.
It remains the only Apple subscription service that isn’t profitable.
Apple reduced its original $5 billion budget for Apple TV Plus content to cut costs by around $500 million. Despite producing hit shows like Severance, Apple TV Plus captures less than 1% of total monthly streaming viewership, while Netflix holds 8.2%, according to Nielsen data cited in the report.
Apple TV Plus was primarily launched to keep users engaged within the Apple ecosystem. Netflix co-CEO Ted Sarandos commented on Apple’s strategy: “I don’t understand it beyond a marketing play, but they’re really smart people. Maybe they see something we don’t.”
Apple’s broader services business, which includes iCloud Plus, the App Store, and search advertising, generates billions annually. However, The Information reports that Apple News Plus, Fitness Plus, and Apple Arcade struggle with low usage, and digital book sales have declined. Sources suggest that they likely wouldn’t be profitable if these services weren’t bundled into Apple One—primarily driven by iCloud Plus. Apple also laid off around 100 employees from its News and Books division last year.
