Apple's ambitious foray into the streaming market with Apple TV+ is reportedly costing the tech giant over $1 billion annually, according to a recent report from The Information. Despite its reputation for innovation and financial discipline, Apple has struggled to rein in the high costs associated with producing premium original content. In 2024, the company managed to reduce its spending by only about $500 million, bringing annual expenses down to $4.5 billion—still significantly higher than many industry competitors.
Since launching Apple TV+ in 2019, Apple has consistently invested heavily in top-tier productions, aiming to compete with established players like Netflix and HBO. The result has been a slate of visually stunning, critically acclaimed series such as Severance, Silo, and Foundation—shows that exude quality and offer no hint of budgetary restraint. This commitment to excellence has won over both critics and audiences, but at a steep financial cost.
Severance Season 2 Episodes 7-10 Gallery
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The critical reception speaks volumes: Severance, recently renewed for a third season following the conclusion of Season 2, holds an impressive 96% critics score on Rotten Tomatoes. Similarly, Silo enjoys a strong 92% approval rating. Apple also continues to impress with new releases like The Studio, a meta comedy led by Seth Rogen that premiered at SXSW to rave reviews—currently sitting at a stellar 97% on Rotten Tomatoes. Other popular titles such as The Morning Show, Ted Lasso, and Shrinking further bolster Apple’s growing content library.
Despite the financial strain, there are signs that Apple’s long-term strategy may be gaining traction. According to Deadline, Apple TV+ added approximately 2 million new subscribers during the run of Severance Season 2. With Apple reporting $391 billion in revenue for fiscal 2024, the company appears willing and able to sustain its investment in original content for the foreseeable future. While the current losses are substantial, Apple’s deep pockets and continued subscriber growth suggest it may eventually turn its streaming ambitions into a sustainable success.
