Apple TV+ Bleeds £771 Million Annually Despite Award-Winning Content

Despite Apple TV+ receiving widespread industry recognition and delivering some of the most critically acclaimed shows and films in recent years, Apple is reportedly losing over £771 million ($1 billion) per year on its streaming service. While its core business in iPhones, MacBooks, and other consumer electronics continues to thrive, Apple's push into streaming remains an unprofitable venture—raising questions about its long-term sustainability.

Apple TV+: The Only Money-Losing Arm of Apple's Empire

According to an exclusive report from The Information, Apple TV+ is the only major division within Apple that is operating at a loss. Since launching the service in 2019, Apple has poured more than £3.8 billion ($5 billion) annually into content creation, but in 2024, it trimmed its spending by around £385 million ($500 million).

Despite these financial setbacks, Apple's Services division, which includes Apple TV+, saw record revenue in the first quarter of 2025. During its Q1 earnings call on 30 January 2025, Apple reported an all-time high of £15 billion ($19.5 billion) in Services revenue. While Apple did not break down specific figures for its streaming platform, CEO Tim Cook emphasised its success, noting that Apple TV+ productions had received over 2,500 nominations and 538 wins across various awards.

Struggling to Secure Market Share

Apple TV+ has yet to cement itself as a dominant player in the highly competitive streaming market. According to JustWatch data from 2024, Apple TV+ briefly surpassed Paramount+ but has since fallen back to an 8% market share in the US.

The latest rankings place Amazon Prime Video in the lead with 22%, followed closely by Netflix at 21%. Max holds 13%, while Disney+ follows with 12%. Hulu (10%) still outperforms Paramount+ (9%), leaving Apple TV+ at 8%—only slightly ahead of Peacock at 7%.

While Apple's numbers remain stable, the platform continues to trail behind its biggest competitors, who dominate the streaming landscape with larger content libraries and aggressive subscriber acquisition strategies.

Strong Content, Weak Revenue

Since its November 2019 debut, Apple TV+ has established itself as a powerhouse for high-quality, original programming. Its partnerships with renowned creators and production houses, such as A24—behind hits like Everything Everywhere All at Once—have helped build its reputation for premium storytelling.

Apple also secured a multi-year content deal with Oprah Winfrey, leading to exclusive documentaries and book club series. Furthermore, one of its flagship series, Ted Lasso, has been renewed for a fourth season. The upcoming season introduces a new twist, featuring Ted Lasso as a women's football coach, with production scheduled to begin in July 2025.

Despite these successes, Apple TV+ has yet to turn a profit, highlighting the challenge of sustaining a platform built on prestige content rather than mass-market appeal.

Future Challenges for Apple TV+

As competition in the streaming market intensifies, Apple TV+ faces both challenges and opportunities. The platform's high-quality, award-winning content sets it apart, but its relatively small market share puts it at a disadvantage against streaming giants.

To drive growth, Apple may need to expand its international footprint and bundle Apple TV+ with other Apple services such as Apple One. Additionally, its investment in live sports, including MLB and MLS partnerships, suggests a wider content strategy beyond scripted programming.

However, with consumer viewing habits shifting and competition from Netflix, Disney+, and Amazon Prime intensifying, Apple must innovate continuously to remain relevant. AI-driven content recommendations, more aggressive content investment, and potential partnerships could play a crucial role in sustaining Apple TV+'s momentum.

Looking ahead, Apple TV+ has the potential to become a dominant force in streaming, but only if it can balance premium content with profitability—a challenge it has yet to overcome.