Apple TV+ Loses $1B Annually Despite Hits

Apple is reportedly facing significant financial losses with its Apple TV+ streaming service, largely due to the high costs associated with producing premium films and TV shows. A report from The Information, behind a paywall, reveals that Apple is hemorrhaging over $1 billion annually because of this overspending on original content. In 2024, Apple attempted to reduce its expenditures, managing to cut costs by approximately $500,000. However, this only brought the annual spending down to $4.5 billion from the previous $5 billion it had been spending each year since launching Apple TV+ in 2019.

Despite the financial strain, Apple TV+'s original programming continues to receive high praise from both critics and audiences. Shows like "Severance," "Silo," and "Foundation" are prime examples of the platform's commitment to quality, with none of these series showing signs of budget constraints in their production values.

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The dedication to quality content is evident in the critical acclaim these shows have received. "Severance," which has been renewed for a third season following the conclusion of its second season, boasts an impressive 96% critics score on Rotten Tomatoes. "Silo" is close behind with a 92% score. Additionally, Apple is set to launch "The Studio," a new meta comedy series led by Seth Rogen that debuted at SXSW and currently holds a stellar 97% critics score on Rotten Tomatoes. Other successful series 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 investment in high-quality content may eventually yield positive results. It's important to note that Apple's overall annual revenue for fiscal 2024 was $391 billion, indicating that the company has the financial resilience to sustain its current strategy with Apple TV+ for the foreseeable future.