Apple TV+ Reportedly Losing $1 Billion a Year Despite Streaming Hits Such as Severance and Silo

Apple is reportedly facing significant financial losses in its Apple TV+ business due to the high costs associated with producing premium films and TV shows for streaming. According to a paywalled report by The Information, the tech giant is losing over $1 billion annually because of its substantial investment in original programming. In an attempt to curb these costs in 2024, Apple managed to reduce spending by only $500,000, bringing the total expenses down to $4.5 billion from the $5 billion it had been spending each year since launching Apple TV+ in 2019.

Despite these financial setbacks, Apple TV+'s original programming continues to receive high praise from both critics and audiences alike. Shows like Severance, Silo, and Foundation are lauded for their high production values and compelling storytelling, with no hint of cost-cutting evident in their quality. Severance, for instance, has not only been renewed for a third season following the Season 2 finale but also boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind, with a 92% rating, while the newly premiered Seth Rogen-led meta comedy, The Studio, which debuted at SXSW, has garnered an outstanding 97% critics score. Other popular series such as The Morning Show, Ted Lasso, and Shrinking also contribute to Apple TV+'s strong lineup.

Severance Season 2 Episodes 7-10 Gallery

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The critical acclaim of these shows reflects Apple's commitment to quality over cost, a strategy that seems to be resonating with viewers. According to Deadline, Apple TV+ saw an increase of 2 million subscribers last month during Severance's run, suggesting that the company's approach might eventually yield financial returns. With Apple's overall fiscal 2024 revenue reaching $391 billion, it's clear the company has the financial resilience to continue investing in its streaming service for the foreseeable future.