According to a report by The Information, Apple has invested over $5 billion to acquire approximately 45 million viewers since the launch of Apple TV+ in 2019. Distinct from its competitors, the streaming platform primarily focuses on offering original content, including series like Severance and Ted Lasso.
The second season of the thought-provoking series Severance, directed by Ben Stiller, recently concluded on Apple TV+, with its creator already planning further developments. Apple CEO Tim Cook has committed to renewing the show, following its success in surpassing Ted Lasso as the platform’s leading series in viewership. Despite these achievements, Apple TV+ is reportedly still operating at a financial loss, relying on Cook’s support for its continued operation.
The Information highlights Apple’s expenditure of over $5 billion since the service’s inception in 2019, resulting in annual losses exceeding $1 billion to maintain its content production. The report states that the platform boasts around 45 million users, though it is unclear how many pay the monthly subscription of $9.99 or the annual fee of $99.99, as opposed to accessing it through bundles such as Comcast’s StreamSaver.
Different from other services like Disney+ and Warner Bros. Discovery’s MAX, which include licensed movies and shows, Apple TV+ is unique as it provides almost exclusively original content from Apple Inc.
The report by The Information outlines how only a select few companies possess the financial capability to compete with industry leader Netflix in the highly competitive streaming landscape. Many companies struggle to match Amazon’s $1 billion investment to produce The Rings of Power, a critically panned series based on "The Lord of the Rings," highlighting the challenges faced by traditional media companies like Paramount.
Funding for Apple TV+ is relatively minimal for Apple, a company generating nearly $100 billion in annual profits from iPhone sales and commissions from transactions through third-party apps on iOS.
With increasing production budgets and declining box-office returns from previously popular franchise movies like the fourth Captain America film, Disney has often been viewed as a potential acquisition for Apple. Such a move could enhance Apple’s content library and its portfolio of Disney-owned franchises.
Amid the current cost-of-living crisis, consumers are increasingly cautious about spending on overpriced movie tickets and subscribing to multiple streaming services. UK-based Ampere Analysis forecasts that more viewers will opt for super bundles, offering access to a combined number of TV and movie libraries at a discounted rate. This includes bundles like StreamSaver, which features Apple TV+, Netflix, and Peacock, and a discounted package that combines Disney+, Hulu, and Max.
This article was originally featured on Fortune.com.
