Apple TV+ Losing $1B Annually Despite Hits

Apple is reportedly facing significant financial setbacks with its Apple TV+ streaming service, primarily due to the high costs associated with producing its original films and TV shows. According to a report by The Information, which is behind a paywall, the tech giant is incurring losses exceeding $1 billion annually. Despite efforts to reduce spending in 2024, Apple only managed to trim costs by about $500,000, bringing the total annual expenditure to $4.5 billion. This is down from the $5 billion it had been spending each year since launching Apple TV+ in 2019.

The quality of Apple TV+'s original programming, however, remains top-notch, earning high praise from both critics and viewers. Standout series like "Severance," "Silo," and "Foundation" are visually stunning and meticulously crafted, reflecting none of the cost-cutting measures. "Severance," which has just been renewed for a third season following the finale of Season 2, boasts an impressive 96% critics score on Rotten Tomatoes. "Silo" is not far behind with a 92% score. Additionally, Apple's upcoming show, "The Studio," a meta-comedy led by Seth Rogen that recently premiered at SXSW, has garnered a remarkable 97% critics score. Other popular series on the platform include "The Morning Show," "Ted Lasso," and "Shrinking."

Severance Season 2 Episodes 7-10 Gallery

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This commitment to quality content seems to be paying off, at least in terms of subscriber growth. According to Deadline, Apple TV+ added another 2 million subscribers last month during the run of "Severance." While the financial losses are substantial, Apple's overall revenue for fiscal 2024 was $391 billion, suggesting that the company can sustain its current strategy for the foreseeable future.