Apple TV+ Losing $1B Annually Despite Hits Like Severance, Silo

Apple's venture into the streaming world with Apple TV+ is facing significant financial challenges, reportedly incurring losses exceeding $1 billion annually due to its heavy investment in high-quality original content. Despite efforts to reduce spending in 2024, the company only managed to shave off $500,000 from its budget, leaving annual expenditures at around $4.5 billion. This is a slight decrease from the $5 billion it has been spending each year since the launch of Apple TV+ in 2019.

The quality of Apple TV+'s original programming, however, remains top-notch, earning both critical acclaim and audience appreciation. Shows like Severance, Silo, and Foundation exemplify the high production values and compelling storytelling that Apple invests in. These series do not cut corners, and their excellence is reflected in their critical reception. Severance, recently renewed for a third season following the conclusion of its second, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score. Additionally, Apple's latest offering, The Studio, a meta comedy led by Seth Rogen, premiered at SXSW and has received an outstanding 97% critics score. Other popular series on the platform include The Morning Show, Ted Lasso, and Shrinking.

Severance Season 2 Episodes 7-10 Gallery

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The high-quality content is starting to pay dividends, with Apple TV+ gaining an additional 2 million subscribers last month during the run of Severance, according to Deadline. This suggests that Apple's strategy might eventually bear fruit. It's important to note that Apple's overall financial health remains robust, having generated $391 billion in annual revenue for its fiscal 2024, which indicates that the company can sustain its investment in Apple TV+ for the foreseeable future.