Yes, Apple generates LOTS of revenue overall, but that doesn't justify bleeding cash on a business line that hasn't produced material returns and has no significant positive trajectory in sight.
It's clear that Apple saw this as their Prime Video bet on their services strategy, but that hasn't worked out. Just look at AppleTV+ market share. It's hilariously miniscule.
TV+ is nice value add on their bundled subscription package so may be driving more people to opt for that. I know it was a major factor in my decision and now I am playing Apple Arcade games and use Apple Music as my primary music service.
Operating TV+ as a halo or loss leader product to get people to try other services within the ecosystem could be a winning strategy for them. Also likely drives some hardware sales.
They have some of the highest sales for high value products in the world.
What the goal of this was obviously to scoop $10 more cream a month from a % of those huge sales numbers.
“Loss Leader” theory makes no sense next to Apples financial and sales reality.
The article is implying that TV+ is losing money. I don’t know that it is but my point is that for Apple it is likely still worth keeping and growing the service even if they are losing money on it at the moment.
AppleTV exists to make existing mega fans happy the ecosystem extends to their TV not to sell things.
I actually haven't seen any numbers on their current marketshare, but I'll give you that they aren't anywhere near their competitors. I don't think the problem is that they're spending too much money.