Apple TV+ Hits 45M Users but Bleeds $1B a Year-Will It Turn Profitable?
Apple's (AAPL, Financial) streaming platform, Apple TV , has nearly reached 45 million subscribers, yet it continues to operate at an estimated $1 billion annual loss, according to a report from The Information.
Since its launch in 2019, Apple has allocated approximately $5 billion per year toward content production. However, that budget has been scaled back to around $4.5 billion as CEO Tim Cook and company executives reassess expenses following a series of underwhelming movie performances, including Argylle, the report stated, citing sources familiar with the matter.
Apple TV+ is part of the tech giant's Services division, which achieved a record $26.34 billion in revenue last quarter, up from $23.11 billion in the same period last year. It is important to note that Apple stock has shed 14% of its value YTD, and around 5.7% over the past six months. The past month has been especially tough where the stock lost more than 12% of its value.
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