Apple is reportedly losing $1 billion per year on Apple TV+

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According to The Information, Apple TV+ has spent over $5 billion a year on content since launching Apple TV+ in November 2019. But that number is down to $4.5 billion. Still, for a company that earned $124.3 billion in revenue in the last quarter, losing $1 billion doesn’t seem as big a deal, says Indiewire’s Brian Welk. “It’s been common knowledge for a while that Apple TV+ is something of a loss leader for Apple,” says Welk. “The company would rather be able to offer the perk of getting a free trial of the service when you buy a new iPhone and being able to say it’s the home to Severance and the Best Picture winner CODA than it is in turning a hard profit or depending on it for the bottom line. Apple TV+ is also bundled into all the other services via Apple One, so it’s unclear how many people are subscribing to get cloud storage and music streaming and deciding they may as well tack on Apple TV+, versus subscribing solely because they want to watch The Gorge.”