CUPERTINO, CALIFORNIA: Apple's ambitious foray into streaming is proving costly, with the company reportedly losing over US$1 billion annually on Apple TV+, according to a report from The Information this week.

Since launching the service in 2019, Apple has been pouring more than $5 billion per year into content creation, though spending was trimmed by approximately $500 million in 2023, the report said.

Apple did not immediately respond to a request for comment from Reuters.

Despite producing critically acclaimed originals like Ted Lasso, The Morning Show, Shrinking, and Severance, Apple TV+ has struggled to compete with streaming giants such as Netflix, Disney+, and Amazon Prime Video in terms of subscriber numbers.

While Netflix leads the industry with 301.63 million subscribers, Disney+ follows with 124.6 million, and Warner Bros. Discovery sits at 116.9 million. Apple does not disclose its subscriber count, but analysts polled by Visible Alpha estimate Apple TV+ had 40.4 million subscribers by the end of 2024.

CEO Tim Cook highlighted Apple TV+'s industry recognition during a January earnings call, stating that the platform's productions have garnered more than 2,500 award nominations and 538 wins.

As competition intensifies, streaming platforms are looking for new ways to attract budget-conscious consumers. Many companies have turned to bundling services at discounted rates to drive subscriptions.

Apple TV+ is included in a Comcast bundle alongside Peacock and Netflix for $15 per month. When purchased separately, Apple TV+ costs $9.99 per month in the U.S. The service is also part of Apple's broader Apple One subscription plan, which combines offerings like iCloud and Apple Music.