Apple TV Plus is reportedly the only unprofitable service offered by Apple, losing more than $1 billion annually despite having 45 million subscribers. In light of financial challenges, Apple has reduced its content budget from $5 billion to $4.5 billion. The platform struggles to gain a significant market share in streaming, capturing less than 1% of total viewership compared to competitors like Netflix. Industry observations suggest that Apple TV Plus primarily serves to retain customers within the Apple ecosystem rather than as a standalone profit generator.
Apple TV Plus, despite its 45 million subscribers and hit originals like Severance, consistently loses over $1 billion annually, remaining Apple's only unprofitable service.
Tuning its operational costs, Apple has cut the budget for Apple TV Plus content from $5 billion to $4.5 billion, reflecting a more stringent financial approach.
'I don't understand it beyond a marketing play,' said Netflix's Ted Sarandos about Apple TV Plus, suggesting its role in maintaining user engagement within Apple's ecosystem.
While Apple TV Plus struggles, other Apple services like Music and News Plus also face challenges, indicating a broader concern about profitability across their service sector.
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