Apple is losing more than $1 billion a year on its streaming service Apple TV+, the Information reported today, citing two people familiar with the matter.
Apple has spent more than $5 billion a year on content since launching Apple TV+ in 2019 but trimmed that budget by around $500 million last year, the report said.
That’s sad to hear. The content on there is amazing for the most part. But, apparently, not cluttering it up with a bunch of junk is actually costing them somehow.
It’s a loss leader. They make money selling the hardware and use AppleTV as a feature. That’s why the content is so good; it has to be to make it a compelling addition to their existing products.
That would make sense if it wasn’t available on every other platform.
It’s still good marketing. People will associate a good service, with good/great shows/movies and without all the fluff that Netflix has, with a good company.
Netflix is just as good as Apple and doesn’t annoy me with ads, failed skips and subscription upsells so I don’t see that working, personally.
appletv plus doesnt have ads. netflix is full of garbage, and requires 2 factor authorization like every couple weeks.
Really? It doesn’t play an ad for a different show every time you start playing a show? Its not littered with ads for MLS? Paramount? HBO?
Yes. It is.
A downvote is just as good as an upvote.
Yeah but it got you to create an Apple account
Which I used to buy nothing
They can extract value from just the existence of your account. If they wanted to run an ad campaign to convince people to use them they can cross reference your email and any other demographic info.
Someone - maybe not you but someone like you - will buy an Apple product because of this.
Source: I used to work for a big data company
Doesn’t sound like something worth $1B
Good content is expensive. And from what I understand, the financials are all fucked up across the industry.
Just look at Netflix, they just blew $320 million on a huge piece of garbage, The Electric State.