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Apple reportedly losing over $1B a year on streaming service as subscriptions sit well below Netflix

1. Apple loses over $1 billion yearly on Apple TV+ streaming service. 2. Annual content spending exceeds $5 billion, trimmed by $500 million recently. 3. Apple TV+ has estimated 40.4 million subscribers, lagging behind major competitors. 4. Apple bundles TV+ with services like iCloud and Apple Music to increase appeal. 5. Rising competition pressures companies to offer bundled services at discounted rates.

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FAQ

Why Bearish?

The reported losses and lagging subscriber numbers can erode investor confidence. Historical data shows that streaming losses have pressured tech stocks, impacting their valuations.

How important is it?

The financial strain of Apple TV+ and competitive challenges could prompt strategic shifts. While significant, the impact on core iPhone business remains secondary.

Why Short Term?

Immediate investor reaction likely due to reported losses and competitive landscape. Short-term pressure on stock value is expected as market adjusts to news.

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