It seems that, for now, it does not worry much, and the investment It is still 4500 million a yeartrying that, although they do not win money, they can cut distances that other competitors such as Netflix, who only live on this, and cannot use the profits of other products, as if Apple does.
How much money Apple TV+loses, and why
Apple has obtained in the last fiscal year, a Net profit of 93.7 billionso losing only a little more than 1% in Apple TV+, do not consider it a failure, but an investment, and that, as we said, other platforms such as Netflix, cannot do this, and several years of losses could be their ruin, however, Apple takes away a little on one side, to try, in the long run, win it in another, so it is not a bad strategy.
But why do they lose so much money? Well, the reasons are as follows:
- They have no ads: Unlike other platforms, Apple does not use a single advertisement in your payment or free plans, so it is difficult to monetize if you do not use this.
- Its price is low: Only 9.90 euros allow 6 people to see Apple TV+, since you can Share it as a family, touching only 1.66 euros per person. There are no geographical or kinship restrictions, despite being called “family”, so you can share it with your friend from another city if you want.
- Quarterly gifts: When acquiring an iPhone, Mac, Apple TV, Apple Watch, etc., the company usually gives us 3 months tests to its services, among which is Apple TV+, so, if we do not pay for 3 months, and on top of that we can share it with more people, income, obviously, decrease, although, as we said, they increase in the sale of products, which compensates for this.
- Free test: There is a 7 -day test to preview the content of the platform. Many people, using this trick, never pay, and simply create more accounts, so income that could come from these users, never arrive, and it is likely that, the day Apple gets tired, eliminate this option, and begin to collect more, something that already happened to Netflix, for example.
These are just some of the reasons why Apple loses moneyand they are not very worried, continuing with their investments in their own series and films, waiting for their catalog, in the future, to be broader and more popular, where they will already focus on that this reports more money.
And you, did you know this type of strategies where a company loses money to be the largest, and then be able to start generating it? It is something similar to what happened to Amazon, and look where it is now.
