Apple reportedly losing around $1 billion a year on streaming

Most of the big studios remain cagey with their numbers, but suffice to say they all poured enormous amounts of money into their streaming services before ever turning a profit. But even then, Apple has a reputation for pretty boggling spending for pretty low viewership. That previous report suggested Apple TV+ made up “just 0.2% of TV viewing in the US” and “generates less viewing in one month than Netflix does in one day.” That’s while paying a reported $20 million an episode for a show like Severance. 

If Apple’s strategy seems inscrutable to you, well, you’re not alone. “I don’t understand it beyond a marketing play,” Netflix co-CEO Ted Sarandos said in a recent interview when asked about Apple TV+ as a competitor, “but they’re really smart people. Maybe they see something we don’t.” Because Apple is a tech company first and foremost, it seems to operate under different goals than other studios. (Think of shows like Shrinking as a gateway for Apple to sell you devices and services.) And because it’s the tech company, it can afford to fuck around, to put it in layman’s terms. Apple TV+ is apparently grouped under Apple Services, which also includes Apple Music, Apple Fitness, Apple News+, Apple Arcade, Apple Books, and iCloud. Per The Information report (via IndieWire), Services brought in over $96 billion last year, so a $1 billion loss is a drop in the bucket. Ain’t the marriage of tech and entertainment grand?