How does it feel to lose a billion dollars a year, Apple?

You might be a fan of Henry Cavill or Dua Lipa (or both at the same time, though I don't find that very likely), but have you ever heard of the "Argylle" (2024) movie? No? And you haven't watched it? Well, this might be one of the reasons why Apple has apparently been losing $1 billion a year.

Putting the $200 million budget, 5.6/10 movie aside (for an IMDB score, that's abysmal), the Apple TV+ model is causing major headaches over at Cupertino: reportedly, that's the only Apple subscription service that is not profitable.

Despite the service's growth to 45 million subscribers in 2024, it remains profitless, and, what's worse, the numbers are going down: Apple is allegedly losing over $1 billion annually. Apple has been spending more than $5 billion a year on content since the service's launch in 2019, but Cook recently cut that budget by $500 million in response to mounting losses.

While Apple TV+ has made notable strides with award-winning shows and films, its audience remains relatively small compared to competitors like Netflix and Amazon. Some reports show that Apple TV+ makes up less than 1% of all streaming viewership on connected TVs in the US.

Meanwhile, Netflix and Amazon are way ahead, with 8.2% and 3.5% of the total viewing in February. Apple TV+ just doesn't have the same variety of shows and movies as its rivals do.



Apple is an intergalactic corporation with the magic ability to absorb these losses, but its adventure in streaming lands has been a costly learning process. The company’s success in other services, such as iCloud+ and the App Store, has bolstered its overall services revenue, which grew by 13% to over $96 billion last fiscal year.

So, if Tim Cook is reading right now, I'm sure he'll say it feels great to lose a billion dollar a year… as long as you have a $96 billion revenue stream.

All in all, Apple TV+ was designed not to compete directly with top-tier streaming services in terms of subscribers, but to enhance the "stickiness" of its ecosystem by offering free trials and bundling it with other Apple services. Executives believed that having the Apple TV+ app available on a wide range of non-Apple devices could indirectly drive hardware sales, though there is no clear evidence of this strategy's success.

Internal changes have also followed growing scrutiny over Apple TV+'s financials. Peter Stern, the former head of the service, left in early 2023, citing frustrations over limited control over content and marketing. His departure led to a restructuring of the services division, with Oliver Schusser now overseeing Apple TV+ alongside Apple Music, and Adrian Perica, who manages iCloud+ and Apple One, taking responsibility for other underperforming services.