Apple's Apple TV+ service is reportedly facing significant financial challenges due to the high costs associated with producing its premium films and TV shows. According to a report from The Information, which is behind a paywall, Apple is incurring annual losses exceeding $1 billion because of its lavish spending on original content. Despite efforts to curb expenses in 2024, the company only managed to reduce costs by approximately $500,000, bringing the total spending to $4.5 billion for the year. This is a slight decrease from the $5 billion spent annually since the launch of Apple TV+ in 2019.
The quality of Apple TV+'s original programming, however, is undeniable. Shows like "Severance," "Silo," and "Foundation" have not only received critical acclaim but also resonated well with audiences, showcasing a level of production that is anything but budget-conscious.
Severance Season 2 Episodes 7-10 Gallery
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The high-quality approach to content creation has resulted in exceptional critical reception. "Severance," recently renewed for a third season following the success of its Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Similarly, "Silo" is close behind with a 92% rating. Apple's upcoming show, "The Studio," a meta comedy led by Seth Rogen that debuted at SXSW, also holds a strong 97% critics score. Other popular series on the platform include "The Morning Show," "Ted Lasso," and "Shrinking."
Despite the financial losses, Apple TV+ continues to grow its subscriber base. According to Deadline, the service gained an additional 2 million subscribers last month during the run of "Severance." Given that Apple's overall annual revenue for fiscal 2024 reached $391 billion, the company is likely to maintain its current strategy in hopes of long-term success.
