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

Apple is reportedly grappling with significant financial losses in its Apple TV+ venture, primarily due to the high costs associated with producing premium films and TV shows for streaming. According to a detailed report by The Information, which is behind a paywall, the tech giant is incurring losses exceeding $1 billion annually. Despite efforts in 2024 to reduce spending, Apple only managed to cut costs by about $500,000, bringing the annual expenditure down to $4.5 billion from the previous $5 billion it had been spending yearly since launching Apple TV+ in 2019.

The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and audiences alike. Shows like Severance, Silo, and Foundation are not only critically acclaimed but also visually stunning, leaving no room for compromise on production values. The commitment to excellence is evident in the critical reception these shows receive. Severance, which has been renewed for a third season following the finale of Season 2, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% rating. Apple's upcoming show, The Studio, led by Seth Rogen and recently premiered at SXSW, also scores high with a 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 dedication to high-quality content appears to be paying off, as reported by Deadline, which noted that Apple TV+ gained an additional 2 million subscribers last month during Severance's run. While the service continues to operate at a loss, Apple's overall financial health remains strong, with the company generating $391 billion in annual revenue for its fiscal 2024. This robust financial position suggests that Apple will likely continue investing in its streaming service for the foreseeable future.