Apple is reportedly facing substantial financial losses in its Apple TV+ business due to significant investments in creating high-quality films and TV shows for streaming. According to a paywalled report by The Information, the company is losing over $1 billion annually due to its hefty spending on original programming. Despite efforts in 2024 to reduce costs, Apple only managed to cut expenses by $500,000, bringing the yearly budget down to $4.5 billion from the $5 billion it had been spending since launching Apple TV+ in 2019.
The original content on Apple TV+ has received high praise from both critics and audiences. Shows like Severance, Silo, and Foundation are prime examples of the platform's commitment to quality, with production values that are anything but cheap. This dedication to excellence is evident in the critical acclaim these series have garnered. Severance, recently renewed for a third season following the success of its Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score. Additionally, Apple is set to release The Studio, a new Seth Rogen-led meta comedy that premiered at SXSW and has earned a remarkable 97% critics score on Rotten Tomatoes. Other popular hits include The Morning Show, Ted Lasso, and Shrinking.
Severance Season 2 Episodes 7-10 Gallery
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The positive reception of these shows may be contributing to subscriber growth. According to Deadline, Apple TV+ added an additional 2 million subscribers last month during Severance's run, suggesting that the company's strategy might eventually prove profitable. It's important to note that Apple generated $391 billion in annual revenue for its fiscal 2024, indicating that it has the financial capacity to continue investing in its streaming service for the foreseeable future.
