To counter this, streamers have had to turn to all avenues to balance costs with revenue to satisfy the market. Some have turned to advertising as an additional source of revenue, others are cracking down on password sharing or offering different subscription tiers. But virtually all of them have raised subscription prices, as the previous price provided short-term losses for long-term growth.
Apple TV+ doesn’t have ads on any plan, and it hasn’t broken down its offering into tiers. (Some other streaming services charge more for 4K content, for example.) So the monthly cost is the only button it can turn to confront these realities, passing on new costs to consumers.
Despite all of this, it’s still very possible that even with the successes of Ted Lasso’s Slavery Studio and The Dismissal , Apple TV+ is losing some money every year. In its quarterly investor reports, Apple lumps TV+ into a larger “services” category that includes Apple Music, the App Store, iCloud, Applecare, and more, making it difficult for outsiders to gauge how well Apple TV+ is doing specifically.
Sure, its shows have been critically well-received. Both The Revenge and Studio , in particular, have garnered positive attention from streaming services. But the landscape is brutal for a relatively new entry like Apple, so expect Apple’s approach to continue to evolve.
