Apple is reportedly facing significant financial losses in its Apple TV+ business due to the high costs associated with producing premium films and TV shows for streaming. A recent report from The Information, which is behind a paywall, highlights that the company is losing over $1 billion annually due to its heavy investment in original programming. Despite efforts to reduce spending in 2024, Apple managed to cut costs by only about $500,000, bringing the total expenditure to $4.5 billion, down from the $5 billion it had been spending each year since launching Apple TV+ in 2019.
The quality of Apple TV+'s original content is undeniable, earning high praise from both critics and audiences. Shows like Severance, Silo, and Foundation are prime examples of the company's commitment to excellence, with no hint of cost-cutting in their production values. This dedication to quality is reflected in the critical acclaim these shows receive. Severance, for instance, which has been renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo follows closely with a 92% score. Additionally, Apple's upcoming show, The Studio, a Seth Rogen-led meta comedy that premiered at SXSW, is also receiving rave reviews with a 97% critics score on Rotten Tomatoes. Other successful series include The Morning Show, Ted Lasso, and Shrinking.
Severance Season 2 Episodes 7-10 Gallery
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The focus on quality content appears to be paying off, as Apple TV+ saw an increase of 2 million subscribers last month during the run of Severance, according to Deadline. This suggests that Apple's strategy might eventually prove successful. It's also important to note that Apple's overall financial health remains robust, with the company generating $391 billion in annual revenue for its fiscal year 2024. This strong financial position indicates that Apple will likely continue its current approach to content creation on Apple TV+ for the foreseeable future.
