Apple is reportedly facing significant financial losses in its Apple TV+ business due to high production costs for its exclusive films and TV shows. A report from The Information, which is behind a paywall, suggests that Apple is losing more than $1 billion annually because of excessive spending on original content. In 2024, efforts were made to reduce these costs, but the company only managed to cut expenses by about $500,000, bringing the total annual spend down to $4.5 billion from the $5 billion it had been spending since launching Apple TV+ in 2019.
Despite these financial challenges, the original programming on Apple TV+ has been highly praised by both critics and audiences. Shows like "Severance," "Silo," and "Foundation" are prime examples of the high-quality content that Apple is producing. These shows certainly don't skimp on production values, and their excellence is reflected in their critical acclaim. "Severance," which has been renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. "Silo" is not far behind with a 92% score. Additionally, Apple is gearing up for the release of "The Studio," a new meta-comedy starring Seth Rogen that premiered at SXSW and has already earned a remarkable 97% critics score on Rotten Tomatoes. Other successful series like "The Morning Show," "Ted Lasso," and "Shrinking" further underscore Apple's commitment to quality.
Severance Season 2 Episodes 7-10 Gallery
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The critical success of these shows seems to be paying off in terms of subscriber growth. According to Deadline, Apple TV+ added 2 million new subscribers last month during the run of "Severance," suggesting that their strategy might eventually prove profitable. It's also worth noting that Apple's total annual revenue for fiscal 2024 reached $391 billion, indicating that the company has the financial capacity to continue investing in its streaming service for the foreseeable future.
