Apple's video streaming venture continues to operate at a loss, with an annual shortfall exceeding $1 billion, as detailed in a recent report from The Information.

The subscription service, 'Apple TV+,’ is reportedly hemorrhaging over $1 billion each year. According to the report, which cites anonymous sources and was published on Thursday, Apple's annual expenditure on content is approximately $4.5 billion, a reduction from previous years' $5 billion. The service, noted for its exclusively original content, boasts around 45 million subscribers.

Apple representatives did not respond to requests for comments on the report.

While a $1 billion loss might seem significant, it represents a minor fraction of Apple’s overall business, primarily driven by iPhone sales. In its last fiscal year ending in September 2024, Apple achieved $391 billion in revenue and recorded a net profit of $93.7 billion.

Financial details specific to 'Apple TV+' are not publicly disclosed by the company. This streaming division is a component of Apple’s Services segment, which also encompasses Apple Music, the App Store, and other business lines. The revenue for this services segment reached $26.3 billion in the year-end 2024 quarter, marking a 14% increase from the previous year.

'Apple TV+' features several award-winning shows such as 'Ted Lasso' and 'The Morning Show', along with others like 'Severance', 'Silo', and 'Shrinking'. The service also includes films like Martin Scorsese’s 'Killers of the Flower Moon' and 'CODA', in addition to others such as 'Fly Me to the Moon' and 'The Family Plan'. Furthermore, 'Apple TV+' hosts 'Friday Night Baseball', a weekly Major League Baseball double-header available in the U.S. and other selected markets without local broadcast restrictions.

In the U.S., 'Apple TV+' is priced at $9.99 per month or $99.99 annually. Unlike other major streaming platforms, it does not offer a lower-priced tier with advertisements. Launched in November 2019, 'Apple TV+' is accessible in over 100 countries and regions.

The report from The Information does not clarify the proportion of the 45 million 'Apple TV+' subscribers who are paying customers as opposed to those receiving the service through promotions or bundled deals. For instance, T-Mobile includes 'Apple TV+' at no additional cost in its premium unlimited wireless plans, and Apple itself offers three free months of 'Apple TV+' with certain new device purchases, affecting the average monthly revenue per user, which remains below $10.

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