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

Apple's foray into streaming with Apple TV+ has been marked by significant financial losses, reportedly over $1 billion annually, due to the high costs of producing original content. Despite efforts to curb spending in 2024, the company only managed to reduce costs by $500,000, bringing the yearly expense down to $4.5 billion from the $5 billion spent since the service's inception in 2019.

Despite the financial strain, Apple TV+ has earned critical acclaim and a strong audience following for its high-quality programming. Shows like "Severance," "Silo," and "Foundation" are prime examples of the service's commitment to excellence, with "Severance" recently renewed for a third season following the conclusion of its second season. The show boasts an impressive 96% critics score on Rotten Tomatoes, while "Silo" is close behind at 92%. Additionally, the upcoming series "The Studio," a Seth Rogen-led meta comedy that premiered at SXSW, has also received high praise, currently holding a 97% critics score on Rotten Tomatoes. Other popular shows on the platform include "The Morning Show," "Ted Lasso," and "Shrinking."

Severance Season 2 Episodes 7-10 Gallery

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The quality of Apple's programming is reflected in its reception, with "Severance" gaining a third season on the heels of its Season 2 finale. This critical acclaim underscores Apple's dedication to producing top-tier content, even if it comes at a steep price.

According to Deadline, Apple TV+ added another 2 million subscribers last month during the run of "Severance," suggesting that the company's investment in quality content might eventually yield positive returns. Moreover, with Apple's fiscal 2024 revenue reaching $391 billion, the company is well-positioned to sustain its current strategy in the streaming market for the foreseeable future.