Apple's streaming service, Apple TV+, maybe achieving impressive viewership figures and breaking records with its new shows, yet the technology and media powerhouse is reportedly incurring annual losses of one billion dollars. A recent report from The Information indicates that insiders have revealed significant financial setbacks in the streaming sector, prompting the company to reduce its spending.

Significant Financial Losses for Apple TV+

The report referenced two anonymous sources who disclosed that Apple has invested approximately $5 billion annually in content since the launch of Apple TV+ in 2019. However, this expenditure was reduced by $500 million last year. This reduction occurred despite the popularity of series such as The Morning Show, Ted Lasso, Severance, and Shrinking, which have all achieved global acclaim and record viewership. Nevertheless, the report noted that revenue remains inadequate.

Additionally, the report highlighted that Apple is facing losses of up to $1 billion each year from its streaming service. In February, research firm Antenna estimated that Apple TV+ gained 2 million subscribers, largely attributed to the success of Severance, its most popular show to date. Although Apple does not routinely disclose viewership statistics, Nielsen reported earlier this month that Severance has become the most-watched show on the platform, accumulating over 3 billion streamed minutes.

Apple's Position Compared to Competitors

In terms of subscriber numbers, Apple TV+ has fallen behind competitors such as Netflix, Disney+, and Amazon Prime Video. Apple has not provided a response to Reuters' request for comments.

As per the latest data, industry leader Netflix boasts a total of 301.63 million subscribers, followed by Disney with 124.6 million and Warner Bros Discovery with 116.9 million. While Apple does not disclose specific subscriber figures for Apple TV+, analysts from Visible Alpha estimate that the service will reach approximately 40.4 million subscribers by the end of 2024.

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