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

Apple is reportedly facing substantial financial losses in its Apple TV+ business, attributed to the high costs associated with producing premium films and TV shows for streaming. According to a paywalled report by The Information, the tech giant is incurring losses exceeding $1 billion annually due to its substantial investments in original programming. Despite efforts to curb spending in 2024, Apple only managed to reduce costs by approximately $500,000, leaving the annual expenditure at $4.5 billion, down from the $5 billion it had been spending yearly since launching Apple TV+ in 2019.

The quality of Apple TV+'s original content is undeniable, earning both critical acclaim and a strong audience following. Shows like *Severance*, *Silo*, and *Foundation* are not only visually stunning but also critically acclaimed, with no hint of budget cuts affecting their production values. *Severance*, in particular, has been a standout success, recently receiving a green light for a third season following the finale of Season 2. It boasts an impressive 96% critics score on Rotten Tomatoes, closely followed by *Silo* at 92%. Additionally, Apple's upcoming show, *The Studio*, a meta-comedy led by Seth Rogen, premiered at SXSW and currently holds an outstanding 97% critics score on Rotten Tomatoes. Other hits like *The Morning Show*, *Ted Lasso*, and *Shrinking* further solidify Apple TV+'s reputation for high-quality programming.

Severance Season 2 Episodes 7-10 Gallery

16 Images

The dedication to quality content is reflected in the critical reception of these series. This approach seems to be paying off, as evidenced by the addition of 2 million new subscribers to Apple TV+ last month during *Severance*'s run, according to Deadline. While the financial losses are significant, they must be viewed in the context of Apple's overall financial health. The company reported an annual revenue of $391 billion for its fiscal year 2024, suggesting that it has the capacity to sustain its current strategy with Apple TV+ for the foreseeable future.