Out of all of Apple’s business, its Services division has ended up being the most reliable, generating revenue growth for the past 10 quarters, with the company’s Q1 2025 earnings revealing that the category brought in a whopping $26.34 billion. It is likely that this figure would be higher if loss-making services such as Apple TV+ would turn things around, but that is the nature of such businesses, and it is expected to bleed money long before it finally turns a profit. What the company can now do is slow the ‘burn rate’ of that cash, and according to the latest figures, Apple TV+ expenditure was reduced by $500 million in 2024, and even then, the service reportedly registered a $1 billion loss.
Executives were asked to negotiate better flight deals for movie and TV show stars, as private jet trips were adding to those Apple TV+ expenditures
Some new figures were spotted by MacRumors while digging around a paywalled report published at The Information, and it found that Apple TV+ had an expenditure of $5 billion since the service’s inception in 2019. While it is expected that this sector will continue to lose money for years, as Apple’s business plan has predicted to suffer between $15 billion and $20 billion in its first decade, there are certain measures the company has to take to ensure that the rate at which these losses transpire is reduced.
For instance, its costs were reduced by $500 million in 2024, with CEO Tim Cook looking at various areas with a closer eye that can be trimmed further. One move Apple’s head honcho has asked executives to change is negotiating better deals with flight-chartering companies. Since stars wish to travel using private accommodation, the bill is endured by Apple and can rack up to tens of thousands of dollars if it remains unchecked.
Furthermore, the California-based giant has stopped Apple TV+ original movies from being screened at cinemas as part of a belt-tightening move to reduce costs. Even with these measures, the total expenditure has reportedly reached $20 billion. Only recently, the streaming service became available on Android, meaning that Apple TV+ has capitalized on the opportunity to bring in more subscribers to its 45 million tally, but only time will tell if its latest decisions have curbed its voracious spending.
News Source: The Information
