Reports indicate that Apple is facing substantial financial losses with its Apple TV+ service, primarily due to the high costs of producing original films and series.

A paywalled report from The Information reveals that the company is losing more than $1 billion annually because of excessive spending on its original content. While Apple attempted to reduce expenditures in 2024, it only managed to cut around $500,000, bringing costs down to $4.5 billion. This is still significantly higher than the $5 billion it had been spending each year since the launch of Apple TV+ in 2019.

Apple TV+’s original programming is widely praised by critics and audiences alike, with hit series like Severance, Silo, and Foundation boasting exceptional production quality. There’s no question that these shows look premium in every way.

Severance Season 2 Episodes 7-10 Gallery

16 Images

This commitment to quality is reflected in the outstanding critical reception these shows receive. Severance, which was recently renewed for a third season following its Season 2 finale, holds an impressive 96% critics score on Rotten Tomatoes. Silo follows closely with a 92% rating. Apple also has a major new release, The Studio, a meta-comedy starring Seth Rogen that premiered at SXSW. It, too, has earned an exceptional Rotten Tomatoes score of 97%. Other popular titles include The Morning Show, Ted Lasso, and Shrinking, among others.

According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during the run of Severance — indicating that its strategy might eventually prove successful. It’s also important to note that Apple reported $391 billion in annual revenue for fiscal 2024, so the company is well-positioned to continue investing in high-quality content for the foreseeable future.