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

Apple is reportedly facing significant financial losses with its Apple TV+ service, largely due to the high costs associated with producing premium films and TV shows for streaming. According to a detailed report by The Information, Apple is losing over $1 billion annually due to its substantial investment in original content. Despite efforts to reduce expenses in 2024, the company only managed to cut costs by $500,000, bringing the annual spending down to $4.5 billion from the $5 billion it has been spending since launching 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 Apple's commitment to excellence, with no hint of cost-cutting evident in their polished production values.

Severance Season 2 Episodes 7-10 Gallery

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This dedication to quality content is reflected in the critical acclaim these shows receive. Severance, recently 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% rating. Apple is also set to launch The Studio, a new Seth Rogen-led meta comedy that premiered at SXSW and currently holds an outstanding 97% critics score on Rotten Tomatoes. Other successful series on the platform include The Morning Show, Ted Lasso, and Shrinking.

According to Deadline, Apple TV+ saw an increase of 2 million subscribers last month during the run of Severance, suggesting that the company's strategy might eventually prove profitable. It's important to note that Apple's overall fiscal 2024 revenue reached $391 billion, indicating that the company can sustain its current approach to Apple TV+ for the foreseeable future.