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, primarily due to the high costs associated with producing premium films and TV shows for streaming. A report from The Information, which is behind a paywall, indicates that Apple is losing over $1 billion annually due to excessive spending on its original content. Despite efforts to curb costs in 2024, Apple managed to reduce spending by only $500,000, resulting in a total expenditure of $4.5 billion, down from the $5 billion it had been spending yearly since launching Apple TV+ in 2019.

The quality of Apple TV+'s original programming remains top-notch, earning high praise from both critics and audiences. Shows like Severance, Silo, and Foundation exemplify the platform's commitment to excellence, with nothing about their production hinting at budget constraints. Severance, in particular, has been a critical darling, boasting a 96% critics score on Rotten Tomatoes and recently receiving a green light for a third season following the Season 2 finale. Silo isn't far behind, with a 92% score. Additionally, Apple's upcoming show, The Studio, led by Seth Rogen and premiered at SXSW, has already garnered a stellar 97% critics score on Rotten Tomatoes. Other hits on the platform include The Morning Show, Ted Lasso, and Shrinking.

Severance Season 2 Episodes 7-10 Gallery

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This focus on quality content has started to show promising results. According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during Severance's run, suggesting that the strategy might eventually lead to financial success. It's important to note that Apple's overall fiscal 2024 revenue reached $391 billion, indicating that the company can sustain these investments in content for the foreseeable future.