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Silo and Severance season 2 may have scored over 90% on Rotten Tomatoes, but Apple is reportedly losing over $1 billion a year on streaming

Silo and Severance season 2 may have scored over 90% on Rotten Tomatoes, but Apple is reportedly losing over $1 billion a year on streaming

  • 22.03.2025 06:14
  • msn.com
  • Keywords: Ben Stiller’s Severance grew streaming service by two million subscribers in February, Silo season 2 has just come to an end, with...

Apple is losing over $1 billion annually on streaming despite hits like Severance and Silo, while March Madness saw upsets and standout performances, including Kentucky's narrow escape and Liberty's scare.

Apple NewsApple ReportsAAPLsentiment_dissatisfied

Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Losing over $1 billion a year on streaming due to overspending on content.

Severance

Positivesentiment_satisfied
Analyst rating: N/A

Grew the streaming service by two million subscribers in February.

Context

Business Insights and Market Implications Analysis

Apple's Streaming Service Challenges

  • Revenue Loss: Apple is reportedly losing over $1 billion annually on streaming despite housing successful shows like Severance and Silo.
  • Content Spending: The company spent approximately $4.5 billion on content in 2024, down slightly from $5 billion the previous year.
  • Subscriber Growth: Despite high costs, Apple TV+ saw a boost with Severance adding two million subscribers in February.

Market Strategy and Competitive Dynamics

  • Content Focus: Apple's strategy centers on premium original content to attract subscribers, similar to Netflix and Disney+.
  • Upcoming Titles: Future releases like Seth Rogan’s The Studio (March 26) and Brad Pitt’s F1 (June) aim to drive further subscriber growth.

Business Implications

  • High Content Costs: The $4.5 billion spent highlights the expensive nature of streaming content, raising questions about sustainability.
  • Subscriber Dependency: Success hinges on attracting enough subscribers to offset high spending, a challenge given Apple's premium model.

Long-Term Effects and Strategic Considerations

  • Financial Risk: Continued heavy investment in content could strain Apple’s profitability unless subscriber numbers grow significantly.
  • Model Adjustments: Potential need to explore alternative revenue streams or adjust pricing strategies to improve financial health.

This analysis underscores the challenges of high-content streaming models and the importance of balancing investment with sustainable growth.