The raging success of Apple TV+ original shows like ‘Severance’ and ‘Ted Lasso’ would give the impression that the streaming service is raking in millions, with even a previous estimate suggesting that the highly popular sports comedy-drama television series was pulling in an impressive $600 million. Unfortunately, a new figure reveals the exact opposite scenario, claiming that the technology giant is losing around $1 billion yearly despite an increase in subscribers.
Compared to all other categories, Apple TV+ is the only one that is losing money, even after it was reported that the expenditure will be controlled
It is no secret that TV shows and movies are expensive to make, and when you have a streaming service like Apple TV+, you can believe that the firm will spare no expense in delivering the best original content possible. According to The Information, these ambitions have caused an orifice of cash to flow in the negative, with the service said to be losing $1 billion annually, even though Apple TV+ added 45 million subscribers to the overall tally.
A hit show like Severance, which reportedly cost $20 million per episode to make, was going through a massive winning streak, with positive reviews praising the science fiction psychological thriller. This popularity surge would have likely increased the subscriber count. The total investment in regards to Apple TV+ was previously reported to have reached $20 billion, with the company taking measures to curb such mammoth levels of spending. Apple’s senior VP of services, Eddy Cue, was said to have appointed two Hollywood studio executives to keep a watchful eye on the budget.
This level of expenditure is expected to keep Apple TV+ alive and thriving, meaning that it could take a while before the streaming service posts a profit. Currently, it is the only business that continues to lose money for Apple, but the California-based behemoth should have little cause for concern. After all, during its Q1 2025 earnings, the company registered a record $124.3 billion in revenue, of which it pocketed $36.3 billion. Based on these numbers, the $1 billion loss is a meager 2.75 percent of Apple’s net earnings for just this quarter, suggesting that it should not flinch to hear of another loss of $1 billion for the year.
News Source: The Information
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