The Apple TV Plus is losing over $1 billion annually, even with 45 million subscribers in 2024, according to a report from The Information.

The report said to be the only Apple subscription service that is not turning a profit.

According to The Information, Apple has reduced its original $5 billion budget for Apple TV Plus content by approximately $500 million in an attempt to adopt a “tougher stance on spending. “

Despite having popular original series like Severance, Apple TV currently accounts for less than 1% of total monthly streaming viewership, compared to Netflix’s 8.2 percent, the report stated.

Apple TV Plus was primarily designed to keep users within the Apple ecosystem.

Netflix co-CEO Ted Sarandos commented on this strategy during a recent interview with Variety, stating, “I don’t understand it beyond a marketing play, but they’re really smart people. Maybe they see something we don’t.”

Apple TV Plus is part of the company’s larger services sector, which generates billions annually through offerings like iCloud Plus, App Store transactions, and search advertising.

However, sources revealed to The Information that Apple Music, which reportedly reached 100 million users through subscriptions and free trials last year, is experiencing a slowdown in growth.

Additionally, Apple News Plus, Fitness Plus, and Apple Arcade reportedly struggle with low usage and profitability.

Sales of digital books have also declined, according to The Information.

Sources indicated that if these services weren’t bundled in the Apple One package—largely purchased for iCloud Plus—they “likely wouldn’t be profitable.”

Last year, Apple also laid off about 100 employees in its News and Books division.

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