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, primarily due to the high production costs of its original films and TV shows. A report from The Information (paywalled) indicates annual losses exceeding $1 billion, a consequence of substantial spending on original programming. While Apple attempted cost-cutting measures in 2024, reducing expenses by approximately $500,000 to $4.5 billion, this remains significantly higher than the $5 billion yearly budget maintained 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 lauded for their high production values, a factor contributing to their positive reception. This commitment to quality is reflected in their impressive Rotten Tomatoes scores: Severance boasts a 96% critics' score, Silo a 92%, and the recently released The Studio an impressive 97%. Other successful titles include The Morning Show, Ted Lasso, and Shrinking.

The recent addition of 2 million subscribers last month, coinciding with the Severance season finale, suggests a potential shift towards profitability. Given Apple's overall fiscal 2024 revenue of $391 billion, the company can likely sustain these losses for the foreseeable future while continuing its investment in high-quality original content.

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