Apple is reportedly facing significant financial setbacks with its Apple TV+ streaming service, primarily due to the high costs associated with producing its original films and TV series. According to a detailed report by The Information, which is behind a paywall, Apple is incurring losses exceeding $1 billion annually. Despite efforts in 2024 to curb spending, the company only managed to reduce costs by approximately $500,000, bringing the total expenses down to $4.5 billion from the $5 billion it had been spending each year since launching Apple TV+ in 2019.
Despite these financial strains, Apple TV+'s original content has been met with widespread acclaim from both critics and viewers alike. Shows like "Severance," "Silo," and "Foundation" are not only visually stunning but also critically celebrated. "Severance," which has been renewed for a third season following the finale of Season 2, boasts an impressive 96% critics score on Rotten Tomatoes. "Silo" is not far behind with a 92% score. Apple's upcoming show, "The Studio," a meta-comedy led by Seth Rogen that premiered at SXSW, has also received high praise with a 97% critics score on Rotten Tomatoes. Other successful series include "The Morning Show," "Ted Lasso," and "Shrinking."
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This dedication to quality content is reflected in the positive reception these shows receive. According to Deadline, Apple TV+ saw an increase of 2 million subscribers last month, largely driven by the success of "Severance." While the service continues to operate at a loss, Apple's broader financial performance remains robust, with the company generating $391 billion in annual revenue for its fiscal 2024. This suggests that Apple may continue to invest heavily in its streaming service, anticipating long-term gains from its current strategy.
