Apple is reportedly facing significant financial losses in its Apple TV+ business due to the high costs associated with producing its premium films and TV shows. According to a detailed report by The Information, which is behind a paywall, Apple is losing more than $1 billion annually due to its substantial investments in original content. Despite efforts to reduce spending in 2024, the company only managed to cut costs by $500,000, bringing the annual expenditure to $4.5 billion from the $5 billion it had been spending since the launch of Apple TV+ in 2019.
Despite these financial challenges, Apple TV+ continues to earn high praise for its original programming. Shows like Severance, Silo, and Foundation are not only critically acclaimed but also beloved by audiences for their impeccable production quality. There's no doubt that these shows are anything but budget-friendly.
Severance Season 2 Episodes 7-10 Gallery
16 Images
This commitment to quality is reflected in the critical acclaim these series receive. Severance, recently renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo isn't far behind, with a 92% rating. Apple's upcoming show, The Studio, a meta-comedy led by Seth Rogen that premiered at SXSW, is also making waves with a stellar 97% critics score 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 during the run of Severance, suggesting that the company's strategy might eventually yield positive results. With Apple generating a massive $391 billion in annual revenue for its fiscal 2024, it is likely that the tech giant will continue to support its streaming service for the foreseeable future.
