Quote from Alex bobby on March 24, 2025, 1:54 PM

Apple TV+ Struggles to Make a Mark Despite Huge Investments

Apple TV+ has been in the streaming game for nearly five years, investing billions in award-winning shows and high-profile films. Yet, despite its high production values and critical acclaim, the platform is reportedly losing a staggering $1 billion (€923 million) annually. With the final episode of Severance Season 2 airing this week, the tech giant's struggles in the streaming market have become even more apparent.

A Costly Venture with Limited Returns

According to sources close to the company, Apple has been spending approximately $5 billion (€4.62 billion) per year on Apple TV+ since its launch in 2019. However, despite its financial muscle, the platform remains far behind its competitors.

Netflix dominates with over 300 million subscribers, while Amazon Prime Video, though operating on a different model, boasts an estimated 200 million users. Disney+ follows closely with 125 million. In contrast, reports suggest that Apple TV+ has only around 45 million subscribers—a stark reminder of the service’s struggles.

Given Apple’s status as one of the wealthiest companies in the world, this lack of traction raises questions about its strategy and execution in the streaming space.

Award-Winning Content, Minimal Impact

Apple TV+ has certainly not skimped on quality. Severance—a psychological sci-fi series about office workers with split consciousnesses—earned 14 Emmy nominations after its debut season in 2022. The second season has continued to generate buzz, competing with HBO heavyweights like The White Lotus and Adolescence.

Other Apple originals like Ted Lasso and The Morning Show have also garnered significant acclaim, contributing to over 2,500 award nominations and 538 wins across the platform’s catalog, as highlighted by Apple CEO Tim Cook in January.

On the film front, Apple became the first streaming service to win Best Picture at the Oscars with CODA. The company has since partnered with top-tier directors, producing films such as Martin Scorsese’s Killers of the Flower Moon, Ridley Scott’s Napoleon, and Steve McQueen’s upcoming Blitz.

Despite this impressive lineup, the platform still struggles to attract and retain subscribers, indicating that prestige alone isn't enough to win the streaming wars.

The Lack of "Water Cooler" TV

One of Apple TV+'s major issues is its lack of cultural impact. Even with A-list talent and critically acclaimed productions, many of its releases fail to generate the widespread buzz that competitors like HBO consistently achieve.

The term "Water Cooler Television" refers to shows so popular that they dominate workplace and social conversations the next day. HBO has mastered this art with hits like The Sopranos, Breaking Bad, and Succession.

Apple TV+ has struggled to create this kind of must-watch television. Severance has been its best attempt, with its intricate plot and suspenseful cliffhangers drawing weekly discussions. However, this remains the exception rather than the rule.

Many of Apple’s projects, despite their pedigree, have failed to make an impact. Shows like Disclaimer (starring Cate Blanchett), Lessons in Chemistry, Pachinko, Shantaram, and even the Band of Brothers successor Masters of the Air have struggled to attract substantial audiences. Meanwhile, the cancellation of niche favorites like Schmigadoon! has frustrated loyal fans.

Big-Budget Films, Underwhelming Returns

Apple’s film division faces similar struggles. As with most streaming services, Apple does not release viewership figures, making it difficult to gauge success. Box office performance, however, offers some insight.

Killers of the Flower Moon was a critical success but a financial disappointment, grossing $158.8 million (€146.7 million) worldwide against a $215 million (€198.6 million) budget. Meanwhile, Napoleon fared slightly better, making $221.4 million (€204.6 million) against a $200 million (€184.5 million) budget, though still failing to break even by industry estimates.

Despite these setbacks, Apple continues to invest heavily in big-budget productions. Upcoming releases include Joseph Kosinski’s highly anticipated F1 film, as well as new projects from Guy Ritchie, Spike Lee, and Paul Greengrass.

Can Apple Turn It Around?

The challenge Apple TV+ faces isn’t unique. Even Netflix, the industry leader, struggles to maintain cultural relevance beyond the initial release window of its shows. Yet, the difference lies in audience perception and market penetration.

While Severance has been renewed for a third season, Apple TV+ still has a long way to go before its streaming service becomes a true Netflix competitor. The company’s commitment to high-quality content is commendable, but unless it finds a way to generate mass appeal and subscriber growth, its massive investment may continue to go down the drain.