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. According to a paywalled report by The Information, the company is incurring losses exceeding $1 billion annually due to excessive spending on its original content. Despite efforts to curb expenses in 2024, Apple only managed to reduce costs by approximately $500,000, resulting in a yearly expenditure of $4.5 billion compared to the $5 billion it has been spending since launching Apple TV+ in 2019.
Despite these financial setbacks, Apple TV+ continues to receive high praise for its original programming, both from critics and audiences. Shows like *Severance*, *Silo*, and *Foundation* are known for their impeccable quality, and nothing about them suggests budget cuts. The commitment to high-quality production is evident in the critical acclaim these series receive. For instance, *Severance*, which has been renewed for a third season following the Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. *Silo* is not far behind with a 92% rating. Additionally, Apple's upcoming show, *The Studio*, a Seth Rogen-led meta comedy that premiered at SXSW, has garnered an excellent 97% critics score on Rotten Tomatoes. Other successful series on the platform include *The Morning Show*, *Ted Lasso*, and *Shrinking*.
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This focus on quality content is paying dividends in terms of subscriber growth. According to Deadline, Apple TV+ added an additional 2 million subscribers last month during *Severance*'s run, suggesting that the company's strategy may eventually prove successful. It's important to note that Apple generated $391 billion in annual revenue for its fiscal 2024, indicating that it can sustain these losses for the foreseeable future.
