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

Apple is reportedly facing significant financial losses in its Apple TV+ business, primarily due to the high costs associated with producing its exclusive films and TV shows. According to a report by The Information, which is behind a paywall, Apple is losing over $1 billion annually. Despite efforts to reduce spending in 2024, the company only managed to cut costs by about $500,000, bringing the total annual expenditure down to $4.5 billion from the previous $5 billion since the launch of Apple TV+ in 2019.

Despite these financial challenges, Apple TV+'s original content has received high praise both critically and from viewers. Shows like Severance, Silo, and Foundation are prime examples of the quality programming offered, showcasing production values that are anything but budget-conscious.

Severance Season 2 Episodes 7-10 Gallery

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The high-quality production of these shows contributes to their strong critical acclaim. Severance, for instance, has been renewed for a third season following the finale of its second season and boasts an impressive 96% critics score on Rotten Tomatoes. Similarly, Silo holds a commendable 92% score. Apple is also set to release The Studio, a new meta-comedy led by Seth Rogen, which premiered at SXSW and currently holds a stellar 97% critics score on Rotten Tomatoes. Other popular 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 investment in quality content might eventually yield positive results. It's important to note that Apple's overall fiscal 2024 revenue reached $391 billion, indicating that the company is likely to continue its current strategy with Apple TV+ for the foreseeable future.