Apple is reportedly facing significant financial losses in its Apple TV+ business, primarily due to the high costs associated with producing premium films and TV shows for streaming. According to a paywalled report by The Information, the company is losing over $1 billion annually due to its substantial investment in original programming. Despite efforts to reduce spending in 2024, Apple only managed to cut costs by about $500,000, bringing the total annual expenditure to $4.5 billion, down from the $5 billion it had been spending each year since launching Apple TV+ in 2019.
The quality of Apple TV+'s original content is undeniable, earning high praise from both critics and audiences. Shows like Severance, Silo, and Foundation are prime examples of the platform's commitment to excellence, with nothing about their production suggesting budget constraints. Severance, in particular, has been a standout success, recently renewed for a third season following the conclusion of its second season. It boasts an impressive 96% critics score on Rotten Tomatoes, while Silo is not far behind with a 92% rating. Apple's upcoming show, The Studio, a meta-comedy led by Seth Rogen, premiered at SXSW and has already garnered a stellar 97% critics score. Other hits on the platform include The Morning Show, Ted Lasso, and Shrinking.
Severance Season 2 Episodes 7-10 Gallery
16 Images
The high-quality content on Apple TV+ is clearly resonating with viewers, as evidenced by the platform's recent growth. According to Deadline, Apple TV+ added another 2 million subscribers last month during the run of Severance, suggesting that the company's strategy might eventually prove profitable. It's important to note that Apple's overall financial health remains robust, with the company generating $391 billion in annual revenue for its fiscal 2024. This strong financial position indicates that Apple will likely continue to invest in its streaming service for the foreseeable future.
