Apple TV+ Losing $1B Annually Despite Hits

Apple's foray into the streaming world with Apple TV+ has been a costly endeavor, with reports indicating that the tech giant is losing over $1 billion annually due to its hefty investments in original programming. Despite efforts to curb spending in 2024, Apple managed to reduce costs by only $500,000, bringing the yearly expenditure down to $4.5 billion from the $5 billion it had been shelling out since launching the service in 2019.

The quality of Apple TV+'s original content, however, remains unparalleled. Shows like Severance, Silo, and Foundation not only boast high production values but have also received widespread critical acclaim and audience appreciation. These series don't skimp on quality, and it shows in their stellar reviews. Severance, for instance, has been renewed for a third season following its successful second season finale, earning a remarkable 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score, and the newly premiered The Studio, a Seth Rogen-led meta comedy showcased at SXSW, has already garnered a 97% critics score. Other hits like The Morning Show, Ted Lasso, and Shrinking further solidify Apple TV+'s reputation for top-tier content.

Severance Season 2 Episodes 7-10 Gallery

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The high-quality content strategy seems to be paying off, as evidenced by the addition of 2 million new subscribers to Apple TV+ last month during the run of Severance. While the financial losses are significant, they must be viewed in the context of Apple's overall financial health. The company reported a staggering $391 billion in annual revenue for its fiscal year 2024, suggesting that it can sustain these losses in the pursuit of building a robust streaming service. As Apple continues to invest in premium content, the long-term strategy might just turn the tide in its favor.