Last week, several US media outlets reported that Apple TV+, a streaming platform owned by consumer electronics giant Apple, loses $1 billion a year. The source of the data is the technology new media "The Information" founded by former Wall Street Journal reporter Jessica Lessin. According to it, Apple TV+, which has been around for five years, now makes its parent company Apple lose more than $1 billion a year. As of last year, the platform had only 45 million users, far less than Netflix's 300 million global users, and even less than Hulu's platform with 53 million users, and only better than Peacock, a streaming platform owned by Universal, with 36 million users.
"The Cut," which just finished its second season, is currently the highest-rated series on Apple TV+.
It is worth mentioning that the report issued by "Information" did not provide any real-name information sources. On the other hand, Apple also declined the emails for verification that came later and did not respond to the report. In the past, the company has never disclosed the financial status and number of users of Apple TV+. The streaming media business is classified by Apple as the so-called "service" category. In addition, Apple Music and Apple Store also belong to the "service" category. In the last quarter of 2024, the revenue of the "service" category reached US$26.3 billion, a year-on-year increase of 14%. It is not difficult to see that for Apple, which has such a rich quarterly revenue in a single category, the streaming business lost US$1 billion last year, which is really not a big deal. What's more, this does not count Apple's main iPhone sales revenue. In the 2024 financial report they released at the end of last year, the full fiscal year revenue reached US$391 billion and the net profit was US$93.7 billion. In contrast, US$1 billion is like a drop in the bucket.
On the other hand, the loss of $1 billion is not a small amount for any traditional Hollywood film and television company. Moreover, no matter how much money there is, it is not something that comes out of thin air. The report of "The Information" mentioned that in the past two years, Apple TV+ has spent about $4.5 billion a year on the production and acquisition of content, which has been reduced by $500 million compared to the $5 billion in the first few years of its establishment. In addition, it is said that Apple itself is also emphasizing the need to cut costs, including the use of private jets to transport actors to and from the set. Compared with the unrestrained use in the first few years, there are now requirements for reasonable use and cost reduction.
Indeed, because it does not have its own film library, the technology giant's streaming platform basically contains its own original content. The investment is much higher than the cost of directly acquiring ready-made old films, so the number of its works is far less than that of streaming platforms such as Disney+ that have accumulated over the years.
Logically speaking, if there are fewer programs, naturally fewer people will watch them. According to this report, all programs on Apple TV+ currently account for less than 1% of the total viewing volume of streaming programs in the United States, which is only one-eighth of Netflix. On the homepage of Apple TV+, they listed the top ten dramas with the highest ratings. The first-ranked "Life Cutting", the second-ranked "The Drug Thief", the fourth-ranked "Surfaced", the seventh-ranked "Mythical Quest", and the eighth-ranked "The Main Target" are new dramas this year. The remaining "Football Coach", "In Treatment", "The Bunker", "The Exile", etc. are all old works that have been completed or the season has ended. In contrast, the competition for the top ten ratings on Netflix is very fierce. Few dramas can stay in the first place for a long time. The hot spots shift very quickly, and the "back waves" emerge in endlessly.
A list of the most-watched shows and movies on Apple TV+.
In addition to the difference in quantity, Apple TV+ may also have many shortcomings in terms of quality. In an article titled "Does anyone really watch the shows on Apple TV+?" published last week by The Guardian reporter Stuart Heritage, he sarcastically said: "There is no doubt that it can attract big stars. Natalie Portman has a work on Apple TV+; Harrison Ford also has a work; Austin Butler, Cate Blanchett, Jake Gyllenhaal, Colin Farrell and Brie Larson also have a show. But the problem is that even if you put a gun to your head, you can't tell the specific names of these works."
The British film journalist described the streaming works shot by the above-mentioned Hollywood stars for Apple TV+ as "the star ranking is very big, but the light is very weak". The so-called "weak light" does not necessarily mean that there is any problem with the quality of the works, but that the public's awareness is really too low. For example, the series "The New Look" that he really praised tells the story of two fashion masters, Christian Dior and Coco Chanel, in France during the German occupation of World War II. It is very watchable, and the performances of Ben Mendelsohn and Juliette Binoche are also very wonderful, and the costumes and props are first-class. "But the problem is that you can stop passers-by on the street and ask, but it may take several months to find someone who has really watched this series."
The drama "New Look" has a good production quality but is not well known among the public.