Apple TV Plus Struggles to Turn a Profit Despite Growing Subscriber Base
On March 20, 2025, a report revealed that Apple TV Plus, despite reaching 45 million subscribers in 2024, continues to face significant financial challenges. The streaming service is reportedly losing over $1 billion annually, making it the only Apple subscription service yet to turn a profit. This raises questions about its long-term viability in an increasingly competitive streaming market.
Launched as part of Apple’s strategy to keep users within its ecosystem, Apple TV Plus has been described by Netflix co-CEO Ted Sarandos as a “marketing play.” Its primary purpose appears to be enhancing Apple’s ecosystem rather than dominating the streaming industry. However, with less than 1% of total monthly streaming viewership, Apple TV Plus lags far behind competitors like Netflix, which commands an 8.2% share.
To address its financial struggles, Apple has taken a more cautious approach to spending. The company reduced its initial $5 billion content budget by $500 million, reflecting efforts to balance ambitious content creation with financial sustainability. Despite these cuts, Apple TV Plus has produced critically acclaimed shows like *Severance*, demonstrating its ability to deliver high-quality content.
The challenges faced by Apple TV Plus are part of a broader trend within Apple’s services division. While Apple Music has reached 100 million users on subscriptions and free trials, its growth has slowed. Other services, such as Apple News Plus, Fitness Plus, and Apple Arcade, also struggle with low usage and profitability. These services are reportedly only profitable because they are bundled in Apple One, which customers primarily purchase for iCloud Plus.
Last year, Apple laid off around 100 employees in its News and Books division, signaling a broader effort to streamline operations. These layoffs, combined with budget cuts, suggest Apple is reevaluating its approach to subscription services.
Emma Roth, the author of the report and a seasoned tech journalist, has been covering the streaming wars and consumer tech for years. Her insights highlight the challenges Apple faces in a crowded and competitive market. When The Verge reached out to Apple for comment, the company did not respond immediately, leaving many questions unanswered.
Despite its financial losses, Apple TV Plus remains a key part of Apple’s services business, which generates billions annually through iCloud Plus, App Store purchases, and search advertising. The service’s ability to produce hit shows like *Severance* demonstrates its potential, but whether it can achieve profitability remains uncertain.
For now, Apple TV Plus serves as a reminder of the challenges tech giants face when entering the streaming industry. While its subscriber base continues to grow, the service must find a way to balance quality content with financial sustainability to secure its future.
As the streaming wars heat up, all eyes will be on Apple to see how it navigates these challenges and whether it can turn its “marketing play” into a profitable venture.
