Apple TV+ Loses $1B Annually Despite Hits

Apple is reportedly facing significant financial losses with its Apple TV+ service, primarily due to the high costs associated with producing premium films and TV shows. According to a paywalled report by The Information, Apple is hemorrhaging over $1 billion annually due to its substantial investments in original content. In 2024, the company attempted to reduce its spending but only managed to cut costs by approximately $500,000. This adjustment brought the annual expenses down to $4.5 billion, compared to the $5 billion spent each year since the launch of Apple TV+ in 2019.

Despite these financial setbacks, Apple TV+'s original programming has received widespread acclaim from both critics and audiences. Shows like "Severance," "Silo," and "Foundation" are prime examples of the high-quality content Apple is producing, with no signs of cost-cutting evident in their polished production values.

Severance Season 2 Episodes 7-10 Gallery

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The commitment to quality is reflected in the critical acclaim these shows have received. "Severance," recently renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. "Silo" is not far behind, with a 92% rating. Additionally, Apple is set to release "The Studio," a new meta-comedy led by Seth Rogen that premiered at SXSW and currently holds an outstanding 97% on Rotten Tomatoes. Other successful series include "The Morning Show," "Ted Lasso," and "Shrinking."

According to Deadline, Apple TV+ saw a significant increase of 2 million subscribers last month during the run of "Severance," suggesting that the company's strategy might eventually yield positive results. It's important to note that Apple's fiscal 2024 generated $391 billion in revenue, indicating that the company can likely sustain these losses for the foreseeable future as it continues to invest in high-quality content.