Apple is reportedly facing significant losses with its Apple TV+ streaming service, attributed to the high cost of producing its original films and TV shows. A report from The Information (paywalled) claims Apple is losing over $1 billion annually due to excessive spending on original programming. While Apple attempted to reduce expenses in 2024, cuts amounted to only about $500,000, leaving annual spending at $4.5 billion, down slightly from the $5 billion spent yearly since the platform's 2019 launch.
Despite the financial setbacks, Apple TV+'s original programming consistently receives critical acclaim and strong audience engagement. Shows like Severance, Silo, and Foundation are visually stunning and exemplify high production values. This commitment to quality is reflected in their positive reception; Severance, recently renewed for a third season, boasts a 96% critics' score on Rotten Tomatoes, while Silo sits at 92%. The upcoming Seth Rogen-led meta-comedy, The Studio, also premiered to rave reviews, currently holding a 97% critics' score on Rotten Tomatoes. Other successful shows include The Morning Show, Ted Lasso, and Shrinking.
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Deadline reports that Apple TV+ gained 2 million subscribers last month, coinciding with Severance's run, suggesting the strategy might eventually prove profitable. Considering Apple's $391 billion in annual revenue for fiscal 2024, the company is likely to maintain its current approach for the foreseeable future.
