Apple TV+ Reportedly Losing $1 Billion a Year Despite Streaming Hits Such as Severance and Silo

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 the company attempted to reduce costs in 2024, cuts amounted to only about $500,000, leaving expenses at approximately $4.5 billion—down slightly from the $5 billion yearly budget 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 known for their high production values, reflecting a commitment to quality over cost-cutting. This dedication to quality is evident in their critical 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 comedy, The Studio, also premiered to critical success at SXSW, achieving a 97% critics score on Rotten Tomatoes. Other successful shows include The Morning Show, Ted Lasso, and Shrinking.

According to Deadline, Apple TV+ gained 2 million subscribers last month, coinciding with Severance's second season. This suggests that Apple's strategy, despite the losses, may eventually yield positive returns. Considering Apple's overall annual revenue of $391 billion in fiscal 2024, the company is likely to continue its current approach for the foreseeable future.

Severance Season 2 Episodes 7-10 Gallery

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