Apple is facing challenges in making its streaming service, Apple TV+, profitable, despite investing billions of dollars in original content.

According to Reuters, the company has been losing over $1 billion annually, even after cutting its content budget by $500 million in 2023.

Subscriber growth but continued losses

While Apple TV+ has steadily grown its subscriber base, it remains Apple’s only unprofitable subscription service, raising concerns about its long-term sustainability. Since launching in 2019, Apple has spent over $5 billion per year on content, betting on exclusive films and series to compete with industry giants.

However, the platform still accounts for less than 1% of total U.S. streaming viewership, trailing far behind Netflix (8.2%) and Amazon Prime Video (3.5%), as of February 2025.

Tim Cook questions financial viability

Apple CEO Tim Cook has reportedly begun questioning the platform’s financial future, particularly scrutinizing expensive productions that have failed to attract significant subscriber growth.

One high-profile flop was Argylle, a $200 million spy action-comedy that failed to generate expected traction. This has led to increased internal scrutiny over spending on Apple TV+, an unusual shift for a company known for its financial discipline.

Tighter oversight on spending

Apple originally planned for $15 billion to $20 billion in losses over a decade, but the company largely avoided financial scrutiny in its early years under senior executive Eddy Cue. However, in 2022, Cook began tightening oversight, implementing stricter budget controls and even curbing lavish perks such as private jet travel for Hollywood stars.

While losses are common in the streaming industry, Apple’s situation raises questions about whether Apple TV+ can ever become profitable or if it will remain a costly experiment in original content production.