Report: Executives Scrutinize Apple TV+ Costs Amid $1 Billion Annual Losses

Core Insights - Apple executives are closely examining the costs associated with Apple TV+, which is currently the only unprofitable segment of Apple's services business, losing over $1 billion annually despite having around 45 million subscribers [1][2] Group 1: Financial Performance - Apple TV+ was projected to incur losses between $15 billion to $20 billion in its first decade, which is typical for new streaming services [2] - The services sector has generated nearly $100 billion in revenue over the past year, with a 14% year-over-year increase in the fourth quarter [3][4] - Apple trimmed approximately $500 million from the $5 billion annual budget for Apple TV+ content last year as part of cost scrutiny [2] Group 2: Subscriber Growth and Engagement - The company reported over 1 billion subscriptions across its services, including Apple TV+ and iCloud, with paid subscriptions growing at a double-digit rate [3][4] - Apple TV+ has been recognized for its rapid release of original content and award nominations since its launch on November 1, 2019 [5] Group 3: Market Expansion - In February, Apple made the Apple TV app available on Android devices, expanding its reach beyond Apple’s ecosystem to include Android users [4][6]