MOVIE NEWS – Breaking into the streaming industry is no easy feat, especially with the fierce competition. While Netflix remains the dominant force, the field has become overcrowded, with each service vying to produce standout content that will keep them ahead.

Creating high-quality content comes at a steep price, and Apple is feeling the financial burn. Despite Apple TV+ being home to some of the most critically acclaimed content, a new report suggests the service is hemorrhaging money every year.

According to The Information, sources with inside knowledge claim that Apple is losing more than $1 billion annually on Apple TV+. Since its 2019 launch, Apple has reportedly spent around $5 billion per year on original programming, though in 2024, that figure was cut down to $500 million. While such losses would be a disaster for most companies, Apple has a financial cushion that sets it apart.

Apple Offsets Streaming Losses With Hardware Sales

Many streaming platforms, including Netflix and Peacock, have reported losses, particularly in their early years. However, Apple operates differently from traditional media companies, as its revenue isn’t solely dependent on streaming. Thanks to strong sales of iPhones, iPads, and MacBooks, Apple can absorb its streaming losses more effectively. Reports indicate that Apple generated $391 billion in revenue in 2024, allowing the company to greenlight high-budget projects like Killers of the Flower Moon ($215 million budget, $158.8 million global earnings) while still respecting theatrical release strategies.

Apple TV+ faces an ongoing challenge: visibility. While the platform boasts an impressive catalog, it struggles with audience awareness. In addition to hosting Martin Scorsese’s Killers of the Flower Moon, Apple has built a strong lineup of hit series, sparking major discussions on social media. Severance has generated considerable buzz with its second season, and The Morning Show and Ted Lasso continue to draw attention and award nominations.

Despite Apple’s dominance in consumer tech, its streaming platform hasn’t achieved the same level of mainstream recognition. The Apple TV+ original film The Gorge, starring Miles Teller and Anya Taylor-Joy, received praise, yet many moviegoers remain unaware of its existence. Apple has yet to perfect the formula for making its content go viral, but its commitment to premium storytelling, even at a financial loss, is something that should be acknowledged.

Source: MovieWeb