+- MacResource (https://forums.macresource.com)
+-- Forum: My Category (https://forums.macresource.com/forumdisplay.php?fid=1)
+--- Forum: Tips and Deals (https://forums.macresource.com/forumdisplay.php?fid=3)
+--- Thread: hematoma?!.....Apple TV+ losing $1 billion annually..... (/showthread.php?tid=295154)
Pages:
1
2
hematoma?!.....Apple TV+ losing $1 billion annually..... - NewtonMP2100 - 03-21-2025
......not profitable......
Report: TV+ Losing $1 Billion Annually as Apple Services Falter
....Apple TV+ is hemorrhaging money amid a broader stall in Apple's services, according to a new report from The Information's Wayne Ma.
The paywalled report reveals that ?Apple TV?+ is the only Apple subscription service that is not profitable. While its subscriptions grew to around 45 million last year, it is still losing more than $1 billion annually. The company has spent more than $5 billion a year on content since the service launched in 2019, but this was reduced by $500 million in 2024 in response to a push for cutbacks from Apple CEO Tim Cook and other executives.
Cook apparently raised questions last year about several movie deals with ?Apple TV?+ executives, including for the spy action-comedy film "Argylle." The movie stars Henry Cavill and Dua Lipa, and cost $200 million to produce. Cook reportedly complained that the movie had not found a significant audience or generated more subscribers for ?Apple TV?+.
The report explains that "the audience for ?Apple TV?+ remains relatively small," constituting less than 1% of total U.S. streaming service viewing. Netflix and Amazon represented 8.2% and 3.5% of total viewing in February.
Apple's initial business plan for ?Apple TV?+ predicted losses of between $15 billion and $20 billion over its first decade. While major losses are normal in the streaming industry, it represents a major departure for Apple which normally exercises fiscal discipline.
Executives such as Eddy Cue initially shielded ?Apple TV?+ executives from budget scrutiny and rejected a proposal to increase oversight of programming costs. Apple did not have internal data on whether ?Apple TV?+ would tempt customers to buy Apple devices.
Despite successes such as "CODA" winning an Oscar for best picture, Cook began closely scrutinizing ?Apple TV?+'s financial performance from 2022 and advocated more oversight. The use of private jet travel for stars at the cost of hundreds of thousands of dollars per flight came under particular scrutiny, and led Apple to ask executives to negotiate better deals with flight-chartering companies.
Apple's overall corporate profits are so significant that it can easily absorb the losses from its streaming service, but it continues to forgo widespread appeal.
Apple Music, Arcade, News+, and Fitness+
Services is Apple's fastest and most profitable category, with gross margins exceeding 75%, compared to just under 40% for hardware. In its most recent fiscal year, services revenue rose 13% to more than $96 billion. However, other than iCloud+, Apple's other services are said to be in poor health.
Apple Music's growth has reportedly virtually stopped and it remains "only marginally profitable." Since it pays artists and labels more than 70% of its revenues, it has a single-digit–percentage gross margin. Cue apparently told some colleagues privately that he doesn't believe the service will ever reach 100 million paying subscribers. Moreover, overall iTunes Store sales are now actively shrinking.
Apple News+, Fitness+ and Apple Arcade are said to be struggling with low usage and profits. ?Apple Arcade? only had two million users during its first year of operation, with roughly 25% of them on free trials.
Similarly, ?Apple News?+ purportedly suffers with low engagement and the number of monthly active users is in the low single-digit millions. Apple Books and ?Apple News?+ was subject to layoffs in 2024 due to weak performance.
Longtime Apple services executive Peter Stern, who oversaw platforms including ?Apple TV?+, abruptly departed the company in early 2023, claiming he was unable to run the streaming service in the way he needed to amid pressure to increase subscriber numbers. Apple subsequently reshuffled his former group, separating ?Apple TV?+, ?Apple Music?, and international content from News+, Fitness+, Apple Books, and ?iCloud?+.
Apple One
The report adds that most users do not sign up directly for Apple's services, instead opting for an Apple One bundle, which inflates the perceived interest in each service. Many who sign up to ?Apple One? are motivated to subscribe so primarily because of ?iCloud?+ rather than other services. Without ?Apple One?, ?Apple Arcade? and Apple Fitness+ would not be profitable.......
.................losing so much.........money.............?!
Re: hematoma?!.....Apple TV+ losing billions annually..... - d4 - 03-21-2025
Of all my relatives, friends, coworkers, and acquaintances, I don't know of anyone that pays for Apple TV+, Apple Music, Arcade, News+, or Fitness+
I just pay $2.99 for iCloud+. And my kids ask me to charge a couple of bucks here and there for games. That's about it.
Re: hematoma?!.....Apple TV+ losing billions annually..... - JoeM - 03-21-2025
I'm actually paying for Apple TV + but really don't watch it. Probably a good reminder to pull the plug.
Re: hematoma?!.....Apple TV+ losing billions annually..... - vision63 - 03-21-2025
They recently put out an AppleTV app for Android. That should help a lot.
Re: hematoma?!.....Apple TV+ losing billions annually..... - iaJim - 03-21-2025
I pay for it, and I watch it too.
Re: hematoma?!.....Apple TV+ losing billions annually..... - special - 03-21-2025
I pay for Apple One which includes everything.
I use iCloud, News+, Music and AppleTV
I rarely use Fitness and Arcade. Maybe I should try those more often.
Re: hematoma?!.....Apple TV+ losing billions annually..... - sekker - 03-21-2025
We watch AppleTV sci-fi shows. And Ted Lasso.
It’s worth it for us.
Re: hematoma?!.....Apple TV+ losing billions annually..... - pqrst - 03-21-2025
Silly question but Apple TV plus, is that the same as Apple TV? In other words, there’s only one Apple TV?
I’ll add that as a whole, and given the spending of $200 million ish each on napoleon & argyle, that both went to
Theater and bought tickets for. That I worry about the money drain that Apple TV is. All the streaming services are losing money or barely breaking even, and I worry that it is a drag on Apple. I sold some of my shares back when it peaked at $250. And haven’t bought any shares for five or six years.
Re: hematoma?!.....Apple TV+ losing billions annually..... - N-OS X-tasy! - 03-21-2025
Billions?
Re: hematoma?!.....Apple TV+ losing billions annually..... - Michael - 03-21-2025
pqrst wrote:
Silly question but Apple TV plus, is that the same as Apple TV? In other words, there’s only one Apple TV?
Apple TV is a hardware box that allows streaming content from various providers. Like a Roku.
AppleTV is a free app that consolidates streaming from a variety of sources (I've seen it with and without a space before TV.)
AppleTV+ in on that AppleTV app and has Apple original content if one was to subscribe.
We used to use a Roku with AppleTV and several TV series that I bought from Apple (e.g. Mash) as well as some movies that I bought from various places and brought to AppleTV. Then we subscribed to Apple One so we get everything and that AppleTV app became AppleTV+ and we can still see the things we've bought along with Apple content, like Ted Lasso.