Apple's foray into the streaming service market with Apple TV+ has been marked by significant financial losses, primarily due to the high costs associated with producing its original content. A recent report from The Information, accessible behind a paywall, reveals that Apple is hemorrhaging over $1 billion annually from its streaming service due to lavish spending on its programming. In an attempt to curb these expenses in 2024, Apple managed to reduce its costs by just $500,000, bringing the total to $4.5 billion, down from the $5 billion it had been shelling out yearly since the launch of Apple TV+ in 2019.
Despite the financial strain, Apple TV+'s original programming has been met with widespread acclaim, both critically and from viewers. Shows like Severance, Silo, and Foundation stand out with their high production values and compelling storytelling, clearly not skimping on quality. The dedication to excellence is evident in the critical reception these series receive. For instance, Severance, which has just been renewed for a third season following its Season 2 finale, boasts an impressive 96% critics score on Rotten Tomatoes. Silo is not far behind with a 92% score. Apple's upcoming show, The Studio, a meta-comedy led by Seth Rogen, which premiered at SXSW, also received a stellar 97% critics score. Other hits on the platform include The Morning Show, Ted Lasso, and Shrinking.
Severance Season 2 Episodes 7-10 Gallery
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The quality of these shows seems to be paying dividends in terms of subscriber growth. According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during the run of Severance. This growth suggests that Apple's investment in premium content might eventually bear fruit. It's important to note that Apple's overall financial health remains robust, with the company reporting $391 billion in annual revenue for its fiscal year 2024. This strong financial position indicates that Apple can sustain its current strategy for the foreseeable future.
