Apple TV+ Losing $1B Annually Despite Hits

Apple's Apple TV+ service is reportedly facing significant financial losses due to its substantial investment in high-quality original content. According to a report by The Information, Apple is losing over $1 billion annually due to its spending on films and TV shows. Despite efforts to curb expenses in 2024, the company only managed to reduce costs by about $500,000, bringing the annual expenditure down to $4.5 billion from the $5 billion it had been spending since launching Apple TV+ in 2019.

The original programming on Apple TV+ has been well-received by both critics and audiences. Shows like Severance, Silo, and Foundation are prime examples of the service's commitment to high production values. There's no mistaking the quality and attention to detail in these series, which certainly doesn't suggest any corners were cut.

Severance Season 2 Episodes 7-10 Gallery

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The meticulous approach to production is reflected in the critical acclaim these shows receive. Severance, recently renewed for a third season following the conclusion of Season 2, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score. Apple's upcoming series, The Studio, a meta-comedy led by Seth Rogen that premiered at SXSW, also received high praise with a 97% critics score on Rotten Tomatoes. Other hits include The Morning Show, Ted Lasso, and Shrinking, further solidifying Apple TV+'s reputation for quality content.

According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during the run of Severance, hinting at potential long-term success. With Apple's fiscal 2024 annual revenue reaching $391 billion, the company is likely to continue its investment in Apple TV+ for the foreseeable future.