Apple Inc.
Losses Mount Despite Emmy Success
The price adjustment comes as The Information reported Apple TV+ loses over $1 billion annually, making it the only unprofitable segment in Apple's services portfolio.
The platform trails Netflix Inc.
Apple has allocated over $5 billion annually to content since 2019, though this budget was reduced by approximately $500 million last year. Analysts estimate Apple TV+ reached 40.4 million subscribers by end-2024, significantly behind Netflix's 301.63 million and Disney's 124.6 million subscribers.
Strategic Expansion Efforts Continue
The company maintains its expansion strategy despite losses. In February, Apple launched the TV+ app on Android devices, with Bank of America Securities analyst Wamsi Mohan estimating a potential $2 billion revenue impact from penetrating 1.5% of Android's installed base. The move aims to increase brand awareness beyond the iOS ecosystem.
Yearly Rate Unchanged, Bundle Pricing Stable
Apple preserved its $99.99 annual subscription rate and maintained Apple One bundle pricing at $19.95 monthly. The streaming service previously increased from $6.99 to $9.99 in 2023, following its initial $4.99 launch price.
Industry data shows consumers spend an average $52.97 monthly on streaming services, with Apple TV+ ranking highest in content quality despite having the smallest library among major platforms, according to Self Financial study using IMDb ratings.
