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

Apple's foray into the streaming world with Apple TV+ has been marked by significant financial losses, primarily due to its substantial investment in high-quality original content. A recent report from The Information, behind a paywall, reveals that Apple is hemorrhaging over $1 billion annually. Despite efforts to curb spending in 2024, the company only managed to reduce costs by $500,000, bringing the total down to $4.5 billion from the previous $5 billion spent annually since the launch of Apple TV+ in 2019.

The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and viewers. Shows like Severance, Silo, and Foundation are prime examples of the platform's commitment to excellence, with no hint of cost-cutting in their production values. Severance, in particular, has seen remarkable success, being renewed for a third season following the finale of its second season, and boasting an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% rating.

Severance Season 2 Episodes 7-10 Gallery

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The platform's dedication to quality content is also evident in its upcoming shows. The Studio, a meta-comedy led by Seth Rogen, premiered at SXSW and has garnered a stellar 97% critics score on Rotten Tomatoes. Apple TV+ also boasts other hits such as The Morning Show, Ted Lasso, and Shrinking, further solidifying its reputation for quality programming.

Despite the financial losses, there are signs of growth. According to Deadline, Apple TV+ added 2 million subscribers last month during the run of Severance, suggesting that the company's strategy might eventually yield positive results. Moreover, with Apple's fiscal 2024 revenue reaching $391 billion, it is clear that the tech giant has the resources to continue investing in its streaming service for the foreseeable future.