Apple (AAPL, Financial) reported that its streaming service, Apple TV , is nearing 45 million subscribers while still incurring annual losses of about $1 billion, according to a Thursday report by The Information.

The service, a key component of Apple's Services division, has trimmed its yearly content spending from roughly $5 billion to around $4.5 billion following several high-profile film underperformances, including the recent flop of Argylle.

Meanwhile, the Services division set a new revenue record last quarter at $26.34 billion, up from $23.11 billion a year earlier.

CEO Tim Cook and other executives are scrutinizing spending strategies to enhance profitability amid fierce competition in the streaming market.

Despite growing subscriber numbers, the ongoing losses underscore the challenges Apple TV+ faces in monetizing its expanding digital content platform.