Apple TV+ Losing $1B Annually Despite Hits

Apple's foray into the streaming world with Apple TV+ is reportedly causing significant financial strain, with losses exceeding $1 billion annually due to the high costs associated with producing its original content. Despite efforts to curb spending in 2024, Apple only managed to reduce its expenses by about $500,000, bringing the total down to $4.5 billion from the previous $5 billion spent annually since the launch of Apple TV+ in 2019.

The quality of Apple TV+'s programming, however, remains unassailable. Shows like *Severance*, *Silo*, and *Foundation* are not only critically acclaimed but also beloved by audiences, showcasing Apple's commitment to excellence in storytelling and production. There's no hint of cost-cutting in these productions; they are as polished and engaging as any top-tier series on the market.

Severance Season 2 Episodes 7-10 Gallery

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The investment in quality content is reflected in the critical acclaim these shows receive. *Severance*, fresh off its Season 2 finale and greenlit for a third season, boasts an impressive 96% critics score on Rotten Tomatoes. *Silo* follows closely with a 92% score. Apple's upcoming show, *The Studio*, a meta comedy led by Seth Rogen that premiered at SXSW, also enjoys a stellar 97% critics score. Other hits like *The Morning Show*, *Ted Lasso*, and *Shrinking* further cement Apple TV+'s reputation for high-quality programming.

Despite the financial losses, there are signs of growth. According to Deadline, Apple TV+ gained an additional 2 million subscribers last month, driven by the popularity of *Severance*. Given Apple's substantial annual revenue of $391 billion in fiscal 2024, the company is likely to continue investing in its streaming service, with hopes that the strategy will eventually turn profitable.