Apple is reportedly facing significant financial losses with its Apple TV+ service, primarily due to the high costs associated with producing its exclusive films and TV shows. According to a report by The Information, which is behind a paywall, Apple is incurring losses exceeding $1 billion annually due to its hefty investment in original content. Despite efforts in 2024 to curb spending, the company only managed to reduce costs by approximately $500,000, bringing the total expenses to $4.5 billion, down from the $5 billion it had been spending each year since the launch of Apple TV+ in 2019.
The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and viewers. Shows like "Severance," "Silo," and "Foundation" are prime examples of the service's commitment to excellence, with nothing about their production suggesting any cut corners.
Severance Season 2 Episodes 7-10 Gallery
16 Images
This dedication to quality is reflected in the critical acclaim these shows receive. "Severance," recently renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. "Silo" follows closely with a 92% rating. Apple's latest venture, "The Studio," a Seth Rogen-led meta comedy that premiered at SXSW, also enjoys a stellar 97% critics score on Rotten Tomatoes. Other notable hits on the platform include "The Morning Show," "Ted Lasso," and "Shrinking."
Despite the financial losses, there are signs of growth. According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during the run of "Severance." This increase suggests that Apple's strategy may eventually prove successful. Moreover, with Apple generating $391 billion in annual revenue for fiscal 2024, the company is well-positioned to continue investing in its streaming service for the foreseeable future.
