Apple TV+, the streaming service from the world’s richest tech giant, has an intriguing yet troubling statistic: it generates over $1 billion in annual losses for its owners.
For a company like Apple, known for producing iPhones and Macs, this might seem like pocket change — especially when considering the billions sunk into ventures like the Apple Vision Pro. Still, it stings, particularly given Apple’s relentless push to outshine Netflix and Disney combined.
To tackle these losses, Apple TV+ has raised its monthly subscription price from $9.99 to $12.99—a $3 jump. The company justifies this steep increase by pointing to its robust library of premium content and its steadfast refusal to introduce an ad-supported tier.
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However, the real story behind this move is less rosy: investor discontent, a lack of a fiercely loyal audience, and a questionable strategy of handing out free promo codes to anyone buying a new smartphone.
With this promotional model, even high-profile additions like Formula 1 content are unlikely to turn the tide. Apple’s attempt to salvage its streaming ambitions may hinge on more than just price hikes — it needs a rethink of its approach to win over viewers.
