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Apple TV+ Bleeding Over $1 Billion Yearly As Streaming War Heats Up: Report - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

1. Apple TV+ incurs annual losses exceeding $1 billion since its launch in 2019. 2. Apple has cut its content budget by $500 million last year. 3. Apple TV+ struggles to compete with Netflix and Disney+ in subscriber growth. 4. The service is projected to incur $15-$20 billion losses by 2029. 5. Apple aims to strengthen its ecosystem through Apple TV+'s selective content strategy.

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FAQ

Why Bearish?

Apple TV+'s unprofitability and growing losses could negatively affect investor confidence, similar to Netflix's struggles in early 2022 which impacted its stock significantly.

How important is it?

The article highlights significant financial challenges for Apple TV+, a crucial part of Apple's services revenue, directly impacting investor sentiment and potential future profitability.

Why Long Term?

The ongoing losses in Apple TV+ could pose risks to Apple’s broader financial health over the next several years, as this segment is currently unprofitable.

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