Apple is reportedly grappling with substantial financial losses in its Apple TV+ venture, primarily due to the high costs associated with producing its original films and TV shows. According to a paywalled report by The Information, Apple is hemorrhaging over $1 billion annually because of its lavish spending on content. Despite efforts to curb expenses in 2024, the company only managed to reduce costs by approximately $500,000, bringing the total annual expenditure to $4.5 billion, down from the $5 billion it had been spending each year 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 visually stunning and meticulously crafted, with no hint of budget constraints. This commitment to excellence is reflected in the critical acclaim these series receive. For instance, 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's upcoming show, The Studio, a meta-comedy led by Seth Rogen that premiered at SXSW, has already garnered a stellar 97% critics score on Rotten Tomatoes. Other hits like The Morning Show, Ted Lasso, and Shrinking further underscore Apple's success in creating compelling content.
Severance Season 2 Episodes 7-10 Gallery
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This dedication to quality content is paying off in terms of subscriber growth. According to Deadline, Apple TV+ added another 2 million subscribers last month during Severance's run, suggesting that the company's strategy might eventually yield positive financial results. It's important to note that Apple's fiscal 2024 generated $391 billion in annual revenue, indicating that the company has the financial resilience to continue investing in its streaming service for the foreseeable future.
