Apple TV+, the tech giant's streaming service, is reportedly hemorrhaging over $1 billion annually, despite boasting 45 million subscribers as of 2024, according to a report from The Information. This staggering loss makes Apple TV+ the only Apple service that isn't generating a profit.

The report suggests that Apple has taken measures to curb its spending, slashing its initial $5 billion budget for Apple TV+ content by around $500 million. Despite this cost-cutting effort, the service still captures less than 1% of total monthly streaming services viewership, a far cry from Netflix's 8.2% market share, as per data from Nielsen.

Industry experts believe that Apple TV+ was primarily created to keep users within the Apple ecosystem, rather than being a standalone profitable venture. Netflix co-CEO Ted Sarandos echoed this sentiment in a recent interview with Variety, stating that he doesn't understand Apple TV+'s strategy beyond being a "marketing play."

Apple TV+ is part of the company's broader services business, which generates billions of dollars in revenue each year through iCloud Plus, App Store purchases, and search advertising. However, other Apple services, such as Apple Music, Apple News Plus, Fitness Plus, and Apple Arcade, are reportedly struggling with low usage and profits. Sources claim that if these services weren't bundled with the Apple One package, which is largely driven by iCloud Plus demand, they likely wouldn't be profitable.

The struggles of Apple's services business are further compounded by the decline of digital book sales and the layoffs of around 100 people in its News and Books division last year. Apple has yet to comment on the report, despite being reached out to by The Verge.

The news raises questions about Apple's long-term strategy for its streaming service and the broader implications for the tech industry. As the streaming wars continue to intensify, Apple will need to reassess its approach to remain competitive in the market. With Apple TV+ still struggling to find its footing, the company's decision to cut costs and reevaluate its strategy may be a sign of things to come.

As the tech landscape continues to evolve, it remains to be seen how Apple will navigate the challenges facing its services business. One thing is certain, however: the company will need to adapt quickly to stay ahead of the curve in an increasingly crowded and competitive market.