Apple's streaming service, AAPL, is reportedly facing losses of around $1 billion annually due to tough competition and changing consumer preferences. The Information reported that Apple has been investing over $5 billion each year to enhance its content library since its launch in 2019, but this amount decreased significantly to $500 million in the previous year.

Despite requests for comments, Apple has not responded.

In an effort to focus on profitability, various media companies are cutting back on spending. Streaming platforms are cracking down on password sharing and bundling their services to retain subscribers. Apple collaborated with Netflix and Comcast's Peacock to introduce the StreamSaver bundle, available exclusively to Comcast broadband internet customers for $15 a month, while a standalone Apple TV+ subscription costs $9.99 per month.

Data from Antenna revealed that Apple's streaming service had a high churn rate in February, with 7% of users leaving compared to Netflix's 2% and Disney+'s 4%.

Apple has a unique strategy of limited content but with critically acclaimed titles like "Severance" and "Ted Lasso," winning prestigious awards. CEO Tim Cook mentioned on an earnings call that Apple TV+ productions received numerous nominations and awards.

Although Apple TV+ does not disclose its subscriber numbers, analysts estimate its user base to be between 30 million and 40 million. In contrast, Netflix has over 300 million subscribers, reaching global markets, unlike Apple TV+, which lacks significant presence in emerging markets.