Apple TV+ Losing $1B Annually Despite Hits

Apple is reportedly facing significant financial losses with its Apple TV+ service due to the high costs associated with producing premium films and TV shows for streaming. A detailed report from The Information, behind a paywall, reveals that Apple is incurring losses exceeding $1 billion annually, primarily because of excessive spending on its original content. Despite efforts to curb these costs in 2024, Apple only managed to reduce expenses by approximately $500,000, bringing the total annual spending to $4.5 billion. This figure is slightly less than the $5 billion the company has been spending each year since launching Apple TV+ in 2019.

Despite the financial strain, the quality of Apple TV+'s original programming remains top-notch, earning high praise from both critics and viewers. Shows like Severance, Silo, and Foundation are prime examples of the platform's commitment to excellence, with no apparent shortcuts in production values.

Severance Season 2 Episodes 7-10 Gallery

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This dedication to quality is reflected in the critical acclaim these shows receive. Severance, which has been renewed for a third season following its Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score. Additionally, Apple's upcoming series, The Studio, a meta-comedy led by Seth Rogen that premiered at SXSW, is also generating buzz with a stellar 97% critics score on Rotten Tomatoes. Other popular series on the platform include The Morning Show, Ted Lasso, and Shrinking.

According to Deadline, Apple TV+ saw an increase of 2 million subscribers last month during the run of Severance, suggesting that Apple's investment in high-quality content may eventually pay off. It's important to note that Apple's fiscal 2024 revenue reached $391 billion, indicating that the company has the financial resilience to continue supporting its streaming service despite current losses.