Apple TV+ Losing $1B Annually Despite Hits

Apple is reportedly facing significant financial losses in its Apple TV+ business 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 because of its substantial investment in original programming. Despite efforts to reduce spending in 2024, Apple only managed to cut costs by approximately $500,000, leaving annual expenses at $4.5 billion, down from the $5 billion it has been spending yearly since launching Apple TV+ in 2019.

The quality of Apple TV+'s original content is undeniable, with critically acclaimed and audience-favorite shows like Severance, Silo, and Foundation. These series are known for their high production values, which certainly do not suggest any corners have been cut. The commitment to excellence is evident in the critical acclaim these shows receive. For instance, Severance, recently renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% rating. Apple's upcoming series, The Studio, a meta comedy led by Seth Rogen, premiered at SXSW and has garnered a stellar 97% critics score on Rotten Tomatoes. Other popular shows like The Morning Show, Ted Lasso, and Shrinking also contribute to the platform's success.

Severance Season 2 Episodes 7-10 Gallery

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This focus on quality content is paying off in terms of subscriber growth. According to Deadline, Apple TV+ added another 2 million subscribers last month during Severance's run, suggesting that the company's strategy may eventually lead to financial success. It's important to consider that Apple generated $391 billion in annual revenue for its fiscal 2024, indicating that the company can sustain its current approach to Apple TV+ for the foreseeable future.