Apple is reportedly facing significant losses with its Apple TV+ streaming service, attributed to the high cost of producing its original films and TV shows. A report from The Information (paywalled) indicates annual losses exceeding $1 billion due to overspending on programming. While Apple attempted cost reductions in 2024, slashing approximately $500,000 from its yearly budget, expenses still remained at $4.5 billion—a substantial figure compared to the $5 billion spent annually since the platform's 2019 launch.
Despite the financial setbacks, Apple TV+'s original programming consistently receives critical acclaim and strong audience engagement. Shows like Severance, Silo, and Foundation are lauded for their high production values, reflecting a commitment to quality over cost-cutting. This dedication to quality is evident in their critical reception; Severance, recently renewed for a third season, boasts a 96% critics score on Rotten Tomatoes, while Silo stands at 92%. Further bolstering Apple's content library is the recently SXSW-premiered The Studio, a Seth Rogan-led comedy currently holding a 97% critics score on Rotten Tomatoes. Other successful shows include The Morning Show, Ted Lasso, and Shrinking.
Recent subscriber growth offers a glimmer of hope. Deadline reports a 2 million subscriber increase last month, coinciding with Severance's second season. Considering Apple's overall fiscal 2024 revenue of $391 billion, the company likely has the financial capacity to sustain these losses for the foreseeable future, betting on the long-term payoff of its high-quality programming strategy.
Severance Season 2 Episodes 7-10 Gallery
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