Apple is losing more than $1 billion a year on its streaming service Apple TV+, the Information reported today, citing two people familiar with the matter.
Apple has spent more than $5 billion a year on content since launching Apple TV+ in 2019 but trimmed that budget by around $500 million last year, the report said.
It’s a loss leader. They make money selling the hardware and use AppleTV as a feature. That’s why the content is so good; it has to be to make it a compelling addition to their existing products.