- According to a report in The Information, Apple has spent over $5 billion to attract currently 45 million viewers since Apple TV+ launched in 2019. Unlike other peers, the streaming service’s small library focuses almost exclusively on original content like Severance and Ted Lasso.
Comedian Ben Stiller’s mind-bending trip Severance celebrated its second season finale on Apple TV+ on Thursday, and the actor-director-producer already has plans for more.
Apple CEO Tim Cook just pledged to renew it after it eclipsed Ted Lasso to become the streaming service’s most-watched series. But Apple+ reportedly remains a money loser whose fate depends on the benevolence of Cook.
According to The Information, Apple is fueling its ambitions to compete with industry leader Netflix to the tune of over $5 billion in spending since its launch in 2019, resulting in per annum losses north of $1 billion to keep pumping out content.
The report added it had about 45 million users, though it is not clear how many of which are paying subscribers spending either $9.99 monthly or $99.99 annually versus those accessing it via a bundle like Comcast’s StreamSaver.
Unlike other streaming services like Disney+ and Warner Bros. Discovery’s MAX that have licensed movies and television shows, Apple TV+ is unique in that it almost exclusively offers viewers original content produced by the Cupertino computer company.
More streaming customers demanding discounted super bundles
The report by The Information highlights how only a handful of companies credibly possess the financial firepower to take on Netflix in the cutthroat streaming wars. It’s hard for many tech companies to keep up with Amazon splurging $1 billion to produce the critically-panned and poorly received “Lord of the Rings” series, The Rings of Power, let alone a struggling legacy media company like Paramount.
The costs to fund Apple TV+ are a drop in the bucket for a company hauling in close to $100 billion in annual profits from the sale of iPhones as well as its cut of transactions conducted via third-party apps on iOS.
Due to ballooning budgets and declining box-office takes from previously must-see tentpoles, like the fourth Captain America outing, Disney has repeatedly been cited as a potential takeover candidate for Apple. Cook’s company could benefit from its library of content and Disney-owned franchises.
Current trends suggest consumers are feeling the pinch from the current cost-of-living crisis and are just as unwilling to splash out money on overpriced movie tickets as they are to pay for yet another streaming service.
UK-based Ampere Analysis expects this year more viewers will seek out super bundles that give them greater access to a combined number of TV and movie libraries without paying full price. This includes StreamSaver, which includes Apple TV+, Netflix and Peacock, as well as a discounted offer that combines Disney+, Hulu and Max.
This story was originally featured on Fortune.com
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