Apple is reportedly facing significant financial losses with its Apple TV+ service due to the high costs associated with producing premium films and TV shows. A report from The Information, behind a paywall, reveals that the company is losing over $1 billion annually due to this lavish spending on original content. Despite efforts to reduce costs in 2024, Apple managed to cut only $500,000, leaving their yearly expenditure at $4.5 billion, down from the $5 billion they've been spending since launching Apple TV+ in 2019.
The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and viewers. Shows like Severance, Silo, and Foundation are prime examples of the service's commitment to excellence, with no hint of cost-cutting in their production values.
Severance Season 2 Episodes 7-10 Gallery
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This dedication to quality is reflected in the critical acclaim these shows receive. Severance, recently renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind 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 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 their strategy might eventually prove successful. It's important to note that Apple's fiscal 2024 revenue reached $391 billion, indicating that the company can sustain these losses for the foreseeable future.
