There’s a possibility that Apple is losing over $1 billion per year on Apple TV. The so-called “loss” is plausible, it’s also a rather ordinarily-sized expense considering Apple’s relatively high scale other marketing expenses.

Consider this: Another report suggests that Apple spent $775 million per year on ads in 2023, with $512 million of that going to YouTube. This unsourced estimate pegs it closer to billions.

Apple TV is special to Apple, because it gets greater creative control and brand association over the work. It also encourages the 45 million people who subscribe to Apple TV to commit to watching its work—if you’re paying $10 per month, you’re going to check in every so often. Google owns YouTube, but Apple owns Apple TV.

Some shows feature literal product placement. It’s not subtle in Ted Lasso, which shows the viewer literally how an Apple product would fit their lifestyle. Many other shows, like Foundation, do not feature an Apple device at all. What’s special to Apple is it gets a chance to be associated with this work, to further elevate its own brand.

Even if it’s not profitable, it makes a lot of sense to me.

P.S., I didn’t even get into how Apple TV offers additional value for its channel partners at T-Mobile and Verizon.