Apple TV+ Losing $1B Annually Despite Hits

Apple is reportedly facing substantial financial losses on its Apple TV+ streaming service, primarily due to the high costs associated with producing its original films and TV shows. According to a detailed report from The Information, Apple is losing more than $1 billion annually. Despite efforts to reduce spending in 2024, the company only managed to cut costs by $500,000, bringing total expenses down to $4.5 billion from the previous $5 billion spent each year since the launch of Apple TV+ in 2019.

The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and audiences alike. Standout series like "Severance," "Silo," and "Foundation" are visually stunning and meticulously crafted, reflecting Apple's commitment to premium content. "Severance," in particular, has been a critical darling, boasting a 96% critics score on Rotten Tomatoes. Its success has led to a third season greenlight following the Season 2 finale. Other hits such as "Silo" and the newly premiered "The Studio," a Seth Rogen-led meta comedy, have also received stellar reviews, with scores of 92% and 97%, respectively. Apple's portfolio also includes popular shows like "The Morning Show," "Ted Lasso," and "Shrinking."

Severance Season 2 Episodes 7-10 Gallery

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This focus on high-quality content is reflected in the critical acclaim these shows receive. The success of "Severance" and other series is evident in the growth of Apple TV+'s subscriber base. According to Deadline, the platform added 2 million new subscribers last month during the run of "Severance," suggesting that Apple's investment in premium content could eventually yield positive results. It's important to note that Apple's overall fiscal 2024 revenue reached $391 billion, indicating that the company has the financial resilience to continue its current strategy with Apple TV+ for the foreseeable future.