Apple TV+ Losing $1B Annually Despite Hits

Apple is reportedly facing substantial financial setbacks in its Apple TV+ venture due to the high costs associated with producing premium films and TV series for streaming. A report from The Information, behind a paywall, indicates that the company is losing over $1 billion annually due to its lavish spending on original content. Despite efforts to curb costs in 2024, Apple only managed to reduce its expenditure by approximately $500,000, bringing the total down to $4.5 billion from the $5 billion it had been spending each year since launching Apple TV+ in 2019.

The quality of Apple TV+'s original programming has been highly acclaimed, earning both critical and audience approval. Standout series such as *Severance*, *Silo*, and *Foundation* are noted for their impeccable production values, which certainly do not suggest any cost-cutting measures. These shows exemplify Apple's commitment to high-quality content.

Severance Season 2 Episodes 7-10 Gallery

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This dedication to quality translates into exceptional critical reception. *Severance*, recently renewed for a third season following 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 launch *The Studio*, a new meta-comedy series led by Seth Rogen that premiered at SXSW and currently holds a stellar 97% on Rotten Tomatoes. Other hits on the platform include *The Morning Show*, *Ted Lasso*, and *Shrinking*.

According to Deadline, Apple TV+ saw an increase of 2 million subscribers last month, spurred by the popularity of *Severance*. This growth suggests that Apple's strategy of investing in high-quality content might eventually yield positive results. It's important to note that Apple's fiscal 2024 generated $391 billion in annual revenue, indicating that the company can sustain its current approach for the foreseeable future.