Toy figures of people are seen in front of the displayed Apple TV + logo, in this illustration taken, Jan. 20, 2022. Reuters-Yonhap

Apple is losing more than $1 billion a year on its streaming service, the Information reported on Thursday, citing two people familiar with the matter.

The tech giant has spent more than $5 billion a year on content since launching Apple TV+ in 2019 but trimmed it by around $500 million last year, the report said.

Apple did not immediately respond to a Reuters request for comment.

Apple TV+, known for original shows such as "Ted Lasso", "The Morning Show", "Shrinking", and "Severance", has lagged behind rivals Netflix, Disney+ and Amazon.com's Prime Video in terms of subscribers.

Industry leader Netflix had a total subscriber count of 301.63 million, according to the latest data, while Disney+ had 124.6 million users followed by Warner Bros Discovery at 116.9 million.

The iPhone maker does not break down the subscribers for Apple TV+ but it is estimated to have reached 40.4 million at the end of 2024, according to five analysts polled by Visible Alpha.

Apple TV+ productions have earned more than 2,500 nominations and 538 wins, CEO Tim Cook said in a post earnings call in January.

As competition heats up in the streaming industry, media companies are increasingly bundling their services at discounted rates to appeal to price-conscious consumers.

Apple TV+ is part of a bundle offered by Comcast that combines the service with Peacock and Netflix at $15 per month. Apple TV+ costs $9.99 per month in the U.S . when bought separately.

The Cupertino, California-based company also bundles Apple TV+ with services such as iCloud, Apple Music and others under the Apple One program. (Reuters)