Apple is reportedly facing significant financial losses in its Apple TV+ venture due to substantial investments in high-quality films and TV shows. According to a paywalled report by The Information, the company is hemorrhaging over $1 billion annually from its lavish spending on original programming. Despite efforts in 2024 to curb costs, Apple only managed to reduce expenses by about $500,000, bringing the yearly spend to $4.5 billion, down from the $5 billion it had been shelling out since the launch of Apple TV+ in 2019.
The original content on Apple TV+ has garnered high praise from both critics and viewers alike. Shows like *Severance*, *Silo*, and *Foundation* are visually stunning and meticulously produced, with nothing about them hinting at budget constraints.
Severance Season 2 Episodes 7-10 Gallery
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This approach has resulted in exceptional critical acclaim for Apple's shows. *Severance*, which has been renewed for a third season following the finale of Season 2, boasts an impressive 96% critics score on Rotten Tomatoes. *Silo* is not far behind with a 92% rating. Additionally, Apple's upcoming show, *The Studio*, a meta-comedy led by Seth Rogen, premiered at SXSW and is currently enjoying a stellar 97% critics score on Rotten Tomatoes. Other notable successes 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. It's important to note that Apple's fiscal 2024 revenue reached $391 billion, indicating that the company is likely to continue investing in its streaming service for the foreseeable future.
