Apple is reportedly facing substantial financial setbacks with its Apple TV+ service due to the high costs associated with producing premium films and TV series for streaming. A paywalled report from The Information reveals that the tech giant is incurring losses exceeding $1 billion annually, primarily because of its substantial investment in original content. In 2024, Apple attempted to reduce its spending, but managed to cut only $500,000, bringing the total expenditure to $4.5 billion compared to the $5 billion it had been spending each year since launching Apple TV+ in 2019.
Despite the financial strain, Apple TV+'s original programming has earned high praise both critically and from viewers. Shows like Severance, Silo, and Foundation are lauded for their quality and meticulous production values, which are anything but budget-constrained. Severance, in particular, has been a critical darling, boasting a 96% critics score on Rotten Tomatoes, and it was recently renewed for a third season following the success of its Season 2 finale. Similarly, Silo enjoys a 92% rating, while the newly premiered The Studio, a meta-comedy led by Seth Rogen, has already achieved a 97% critics score after its debut at SXSW. Other notable hits on the platform include The Morning Show, Ted Lasso, and Shrinking.
Severance Season 2 Episodes 7-10 Gallery
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The acclaim these shows receive reflects Apple's commitment to quality over cost-cutting, a strategy that seems to be resonating with audiences. According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during Severance's run, hinting that the company's approach may eventually prove profitable. This growth is particularly noteworthy when considering that Apple's fiscal 2024 generated $391 billion in revenue, suggesting that the company can sustain its investment in Apple TV+ for the foreseeable future.
