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. A paywalled report by The Information reveals that Apple is hemorrhaging over $1 billion annually due to its lavish spending on original content. Despite efforts to curb spending in 2024, the company only managed to reduce costs by $500,000, leaving annual expenses at $4.5 billion, compared to the $5 billion it had been shelling out each year since launching Apple TV+ in 2019.
The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and audiences alike. Shows like *Severance*, *Silo*, and *Foundation* are visually stunning and meticulously crafted, with nothing suggesting they were made on a shoestring budget.
Severance Season 2 Episodes 7-10 Gallery
16 Images
This dedication to quality is reflected in the critical acclaim these series 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% rating. Apple's upcoming show, *The Studio*, a meta-comedy led by Seth Rogen that premiered at SXSW, is also making waves with a stellar 97% critics score on Rotten Tomatoes. Other hits in the Apple TV+ lineup include *The Morning Show*, *Ted Lasso*, and *Shrinking*.
Despite the financial losses, Apple TV+ saw a boost in subscribers, adding 2 million last month during *Severance*'s run, according to Deadline. This growth suggests that Apple's strategy might eventually yield positive results. Moreover, with Apple generating $391 billion in annual revenue for its fiscal 2024, the company is well-positioned to continue investing in its streaming service for the foreseeable future.
