A widely-used streaming platform famous for its successful series like Severance and Ted Lasso might be close to ceasing operations.
The Apple TV+ high-end subscription service reportedly incurs losses of more than $1 billion annually, as stated in a report released on March 20. The Information .
A portion of these losses stems from the billions of dollars Apple invests annually in producing content for the streaming service.
Since its debut in 2019, the technology firm has been allocating more than $5 billion annually for operations up until last year when they reduced their spending by half a billion dollars.
Even with the setback, the streaming service attracted approximately 45 million new subscribers to their platform over the past year.
Nevertheless, the streaming service's offerings have attracted few audiences, with Nielsen, the media measurement company, reporting that Apple TV+ accounts for under 1 percent of monthly views on smart TVs within the United States.
The streaming platform also provides limited content when compared to Netflix and Amazon , accounting for 8.2% and 3.5% of the total US viewership in February.
Apple offers expensive material that subscribers can enjoy on its streaming service for $9.99 per month or $99.99 annually.
Experts likewise think that Apple hasn't put significant effort into ensuring it distinguishes itself from competing services.
'While Apple is known for disrupting the industry through its hardware and App Store, I don’t perceive this as their primary strength,' said Horace Dediu, founder of the market analysis company Asymco, to The Information.
'The company isn’t recognized for choosing favorites among winners and losers.'
The technology giant had achieved financial success well before launching Apple TV+. In its fiscal year 2024, it reported an impressive annual revenue of $391 billion.
The streaming division constitutes a significant portion of the firm’s operations, contributing 21 percent to Apple's overall income.
By the close of 2024, their streaming division had generated $26.3 billion, marking a 14 percent rise from the previous year at this same point.
Experts forecast that Apple TV+ may incur losses of between $15 billion and $20 billion over its initial ten-year period.
If Apple chooses to discontinue Apple TV+, it won’t be the sole large corporation to close down a streaming platform.
Google had tried to produce both scripted and unscripted original content for YouTube, such as Cobra Kai.
The project failed in 2022, and Cobra Kai subsequently became one of Netflix's most popular series.
Last year, Amazon gained significant attention when it announced the discontinuation of its advertisement-free video streaming service called Freevee.
'To deliver a simpler viewing experience for customers, we have decided to phase out Freevee branding,' an Amazon spokesperson confirmed to Variety last year.
Other streaming platforms that shut down include Quibi, FilmStruck, and Funimation.
The Daily Mail has contacted Apple for their input.
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