Why is Apple sinking so much money into its streaming service? F1 gives us a clue

In autumn 2019, Apple launched its Apple TV+ streaming service, with enormous self-confidence and a huge budget. Since then, the iPhone company has stuck to its chosen course: exclusive productions, huge stars and high technical quality are constantly rewarded with lavish financial injections.

For years, industry analysts have been talking about Apple spending at least $1 billion US dollars a year – a figure that has recently entered public discourse once again thanks to the blockbuster F1, which is being promoted with the utmost PR glamour and is out now in cinemas.

F1 is not expected to drop on Apple TV+ until later – the most recent rumours suggest it will be released roughly around fall 2025.

But while Netflix, Disney+ and Amazon’s Prime Video have long been regarded as streaming giants, Apple TV+ remains more of a classy little niche. But why? And what is Apple’s end goal with this streaming platform?

The achievements of Apple TV+ speak for themselves

Apple TV+ is certainly not lacking in awards and artistic recognition – it got 52 Emmy nominations in one year, 20 of which were for Ted Lasso alone, and three Oscars for the film Coda. The service is a hit with critics and award organisations. Huge draws such as the sci-fi series For All Mankind, the biopic drama The Morning Show or, most recently, the Formula 1 big screen project F1 with Brad Pitt, are also made with high production quality in mind.

Some extras are not available with other services. For example, when you buy a device, you get three months for free, after which you can get all of this for just £8.99/$9.99 per month – all in 4K quality. Competitors such as Netflix, Disney+ and Prime Video all lock UHD content behind more premium subscriptions that are much pricier than Apple TV+.

But Apple TV+ is missing some key things

Despite its glamour, international awards and technical excellence, the service falls short in four main areas:

1. Small selection of content
Apple TV+ offers just under 300 films and series, to put it charitably – all other competitors come up with several thousand items of content – Netflix has well over 5,000. Less choice means that viewers are not as likely to stick around in the long run once they’ve finished a show they enjoy.

2. Quality, but not quantity
Apple attaches great importance to prestige series, strong material, and well-known directors. But your typical Netflix hit relaxed sitcom, or mainstream format, is missing. Even the comedy Ted Lasso demands attention and cannot just be put on in the background for easy viewing.

3. Apple-first strategy
Apple TV+ runs best – and most conveniently – on Apple hardware. The company is making more effort to offer its service on other platforms too, but the Apple TV+ button on remote controls is still a long way off, and may never materialise.

4. A crowded market
With every new in-house production, Apple TV+ is competing against a market that has been saturated with streaming services and subscriptions since the pandemic. Consumers have to choose, and usually rely on established platforms with a larger catalogue. The fragmentation of the offering means that Apple TV+ is lagging behind in terms of mass appeal despite its accolades.

Apple TV+ is missing a crowd-pleasing hit

Just because something is high quality doesn’t mean it will be instantly popular. Apple wins critics’ awards and earns standing ovations, but the “must-see” status in everyday family or flat-sharing life remains elusive.

There is a lack of easily accessible formats, series for relaxed binge-watching, such as those perfectly covered by Netflix with Stranger Things and Friends, or Disney+ with The Simpsons and the abundance of shows in films in the Marvel and Star Wars universes. This omission means that Apple TV+ doesn’t feel like a must-have subscription for everyone.

Other providers are also trying their hand at other genres. Netflix is dabbling in live sport, admittedly with not too much success, and games. Amazon’s Prime Video has also branched into sport with the UEFA Champions League, while commissioning new shows traditionally reserved for corners of the internet, such as YouTube. Beast Games is a prime example – there are no critics’ awards for these types of shows, but there is demand from viewers.

Amazon Prime Beast Games

So, why is Apple investing billions per year?

Apple TV+ as a marketing investment

Apple sees TV first and foremost as a platform to strengthen its ecosystem. The streaming site increases the overall value of its devices, making the iPhone, iPad and Mac more attractive. This, in turn, creates another reason to remain loyal to the Apple brand with exclusive content. Anyone who buys a new device gets a subscription for free – the perfect opportunity to retain customers in the long term.

You’ll also notice that characters on these shows exclusively use iPhones and the Apple ecosystem, so it’s a great way to quietly advertise.

Attributed soft power

Apple TV+ is less about gaining market share in the short term and more about creating brand loyalty. Everyone who uses Apple TV+ gives their time and potentially their media usage patterns to their own Apple universe in the long term. This effect can hardly be measured in subscriber numbers, but is a key soft power factor for Apple: TV is publicity, an advertising engine, a showcase for the “best from a single source” approach.

Hoping for the cult moment

With its investment, Apple is constantly buying new opportunities for hype, like Netflix with Squid Game or HBO with Game of Thrones. Every new, big-budget production is potentially a huge hit. With lots of PR and Oscars, Apple is keeping its streaming division in the limelight.

F1 is a prime example of Apple’s strategy in action

The F1 film, which was produced on a whopping $200-$300million budget, shows that Apple TV+ is relying on the strategies mentioned above.

Apple sees F1 as the perfect opportunity to position the service as the streaming home for blockbuster cinema. Brad Pitt as the star, real racetracks as the backdrop, and an orchestrated worldwide cinema release before its streaming debut. It’s a huge amount of money for Apple to drop on a single project, and a key test to win over fans from outside the usual Apple crowd.

The involvement in F1 shows that Apple is ready to combine entertainment, PR and technology storytelling. It is still unclear whether this cinematic experiment will work in the long term, or make its streaming service grow over time – but nobody can deny Apple’s PR impact.

Apple is also using every channel to promote the film. Even this year’s WWDC, an event that is actually for developers, was opened with the theme of F1.

Apple WWDC 2025 Stream

Will Apple’s investment pay off?

Apple TV+ has gained visibility in the streaming market since 2024, but remains well behind the frontrunners. In the UK, Apple TV+’s market share is now large enough to overtake smaller competitors such as Sky’s Now service, but Netflix, Amazon Prime Video and Disney+ are still strides ahead.

It is estimated that the number of paying Apple TV+ subscribers worldwide is around 45 million. By comparison, Netflix and Prime Video are in the range of 200 to over 300 million users, while Disney+ is well over 100 million.

Verdict: Apple TV+ is focused on brand image rather than mass market

Why is Apple sinking a billion dollars (and more) into Apple TV+ every year? It’s not because the service is worthwhile as a subscription alone, or because it has to beat traditional streaming competitors. It’s because Apple as a brand benefits from increasing the value of all its own devices – and the entire platform – with its own content, brilliant productions and a showcase for technologically sophisticated entertainment.

F1, starring Brad Pitt, is the next attempt at a big PR project. It remains to be seen whether this will be enough to get Apple TV+ out of its niche, but at the very least, the service remains perhaps the most expensive prestige project of the digital age.