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Apple TV+, Apple’s streaming service that scored 72 Emmy Award nominations<\/a> and nine Golden Globe nominations<\/a> last year, is reportedly costing the company billions of dollars.<\/p>\n According to a report from The Information<\/a> on Thursday, Apple has spent more than $5 billion annually creating high-quality prestige TV shows<\/a> like the World War II miniseries “Masters of the Air” and the hit science fiction show “Severance.” The Information reported that despite Apple obtaining 45 million Apple TV+ subscribers, the company has lost more than $1 billion per year on the streaming service.<\/p>\n The news aligns with previous reports. Bloomberg noted last year that Apple spent more than $20 billion<\/a> on original content from 2019 to 2024, but only attracted 0.2% of U.S. TV viewership overall.<\/p>\n Apple’s 45 million subscribers lag behind the number racked up by competitors. Industry leader Netflix has over 300 million subscribers<\/a> while Disney+ has nearly 125 million<\/a>.<\/p>\n Related:<\/b> Amazon Prime Video Doesn’t Want to Be Just a Default Prime Perk. Here’s How the Streaming Service Became a Major Player.<\/a><\/p>\n Apple also charges less for Apple TV+ compared to rivals. An ad-free subscription to Apple TV+ costs $9.99 per month compared to Netflix’s lowest ad-free tier<\/a> of $17.99 per month and Disney+’s lowest ad-free category<\/a> of $15.99 per month. Apple tucks in Apple TV+ into other purchases, bundling three free months<\/a> of Apple TV+ with the purchase of any Apple device and offering a free subscription to the streaming service with $5.99 per month Apple Music Student Plans.<\/p>\n Though a $1 billion loss may seem significant, it barely makes a dent in Apple’s overall revenue. Apple TV+ falls under the company’s Services division, which also houses Apple Music, Apple Fitness, Apple News+, Apple Arcade, Apple Books, and iCloud. The company’s most recent earnings<\/a> for the quarter ending in January show that Apple brought in $124.3 billion in revenue overall, with $26.3 billion coming from Services. For the full year of 2024, Services yielded $96 billion in revenue.<\/p>\n Since launching in November 2019<\/a>, Apple shows have set themselves apart for their top-notch production and star-studded casts. For example, “The Morning Show” featured Reese Witherspoon and Jennifer Aniston, and “Oprah’s Book Club<\/a>” starred Oprah Winfrey as the host.<\/p>\n The approach has resulted in critical acclaim, with the show “Ted Lasso” earning 11 Emmy Awards<\/a> overall and the movie “Coda” being the first from a streaming service<\/a> to take home an Oscar for best picture<\/a> in 2022. Apple has established an extensive library of content, building<\/a> over 80 original movies and 120 original shows from the ground up, including comedy shows like “Mythic Quest” and action-packed movies like “Wolfs.”<\/p>\n Related: <\/b>This Streaming Service Beat Netflix as the No. 1 One Market Leader in the U.S.<\/a><\/p>\n Apple CEO Tim Cook said in a post-earnings call<\/a> in January that the streaming service had earned more than 2,500 award nominations and 538 wins since it began.<\/p>\n Apple is the most valuable company in the world at the time of writing, with a market cap<\/a> of over $3.2 trillion.<\/p>\n<\/p><\/div>\n