Apple's investment in original content for Apple TV+ is reportedly leading to significant financial losses, according to a recent report by The Information. The tech giant is said to be losing over $1 billion annually due to high production costs and aggressive spending on original programming. Despite efforts in 2024 to reduce expenses, the company only managed to cut costs by approximately $500 million, bringing annual spending down to $4.5 billion from a consistent $5 billion since the service launched in 2019.

Despite the financial strain, Apple’s strategy of investing heavily in premium content has resulted in critically acclaimed and visually stunning series. Shows like Severance, Silo, and Foundation are prime examples of this approach, offering production quality that rivals—and often exceeds—industry standards. These shows do not reflect budget constraints, with their intricate storytelling and cinematic visuals drawing widespread praise.

Severance Season 2 Episodes 7-10 Gallery

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This commitment to excellence has paid off in terms of audience reception and critical acclaim. Severance, recently renewed for a third season following the successful release of its second season, holds an impressive 96% critics score on Rotten Tomatoes. Similarly, Silo enjoys a strong 92% rating, while the new Seth Rogan-led series The Studio—which premiered at SXSW—currently boasts a stellar 97% critics score. Other popular titles such as The Morning Show, Ted Lasso, and Shrinking have also contributed to the platform's growing reputation.

According to Deadline, Apple TV+ gained an additional 2 million subscribers last month during the run of Severance Season 2, suggesting that its content-driven strategy may slowly begin to yield tangible returns. With Apple reporting $391 billion in revenue for fiscal year 2024, the company appears well-positioned to continue funding its streaming ambitions for the foreseeable future.