Apple TV+ Losing $1B Annually Despite Hits

Apple is facing significant financial setbacks with its Apple TV+ service, primarily due to the high costs associated with producing premium films and TV shows. A report from The Information, behind a paywall, indicates that the company is incurring annual losses exceeding $1 billion, attributed to lavish spending on its original content. Despite efforts to reduce expenses in 2024, Apple only managed to trim costs by $500,000, bringing the annual expenditure down to $4.5 billion from the $5 billion spent annually since the launch of Apple TV+ in 2019.

Apple TV+'s original programming has earned widespread acclaim from both critics and viewers. High-quality productions such as Severance, Silo, and Foundation exemplify the premium nature of the content, with no visible compromises in production values. Severance, for instance, has been renewed for a third season following the success of its Season 2 finale and boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score. Apple's upcoming project, The Studio, a meta-comedy led by Seth Rogen that premiered at SXSW, also received a stellar 97% critics score on Rotten Tomatoes. Other hits on the platform include The Morning Show, Ted Lasso, and Shrinking.

Severance Season 2 Episodes 7-10 Gallery

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The critical acclaim of these shows reflects Apple's commitment to high-quality content. According to Deadline, Apple TV+ saw an increase of 2 million subscribers last month, spurred by the popularity of Severance. This growth suggests that Apple's strategy might eventually prove profitable. 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.