Apple is facing significant financial setbacks with its Apple TV+ streaming service, largely due to the high costs associated with producing its acclaimed original content. A recent report from The Information, behind a paywall, reveals that Apple is incurring losses exceeding $1 billion annually. Despite efforts to reduce spending in 2024, the company only managed to cut costs by $500,000, bringing the total annual expenditure to $4.5 billion, down from the $5 billion it had been spending since launching Apple TV+ in 2019.
The quality of Apple TV+'s original programming is undeniable, earning high praise from both critics and viewers. Shows like Severance, Silo, and Foundation are prime examples of the service's commitment to excellence, with no hint of cost-cutting in their production values. Severance, in particular, has been a standout success, recently renewed for a third season following the conclusion of its second season, boasting an impressive 96% critics score on Rotten Tomatoes. Silo follows closely with a 92% score, while the newly premiered The Studio, a meta-comedy led by Seth Rogen, has garnered a stellar 97% critics score after its debut at SXSW. Other popular series on the platform include The Morning Show, Ted Lasso, and Shrinking.
Severance Season 2 Episodes 7-10 Gallery
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The critical acclaim these shows receive is a testament to Apple's dedication to quality content. Amid the success of Severance, Apple TV+ saw an increase of 2 million subscribers last month, according to Deadline. This growth suggests that Apple's strategy might eventually prove profitable. It's also important to note that Apple's overall financial health remains robust, with the company reporting $391 billion in annual revenue for fiscal 2024, indicating that it can sustain its current approach to content creation for the foreseeable future.
