Apple’s (AAPL) streaming platform is losing a reported $1 billion a year as the company faces stiff competition and a more choosy consumer.
According to a report in the Information, Apple — which just shed around $700 billion as a result of Wall Street’s latest tech rout — has consistently spent over $5 billion annually to beef up its content slate since launching in 2019. That number, though, dramatically decreased to just about $500 million last year, the report said.
Apple did not immediately respond to Yahoo Finance’s request for comment.
The update comes as many media giants have pulled back on spending in favor of profitability. More streaming platforms are cracking down on password sharers and have also bundled their respective offerings to prevent churn, or users abandoning their subscription plans.
Last year, Apple partnered with Netflix (NFLX) and Comcast’s Peacock (CMCSA) to launch a new bundle dubbed StreamSaver, exclusively available to Comcast broadband internet service customers for a cost of $15 a month. The monthly price of a solo Apple TV+ subscription currently sits at $9.99, although users can bundle Apple’s streaming service with other Apple-related products like Apple Arcade and Apple News+.