Emma Roth, reporting for The Verge:

Apple TV Plus is losing more than $1 billion every year despite reaching 45 million subscribers in 2024, according to a report from The Information. It’s reportedly the only Apple subscription that isn’t generating a profit.

As part of an effort to take “a harder line on spending,” Apple cut its initial $5 billion budget for Apple TV Plus content by around $500 million, The Information reports. Even with hit original shows like Severance, Apple TV currently captures less than 1 percent of total monthly streaming services viewership, as opposed to Netflix’s 8.2 percent, according to data from Nielsen cited by The Information.

People online have been saying the $1 billion number isn’t so bad because Apple makes a profit on Apple TV+ subscriptions eventually by getting people into its product ecosystem of iPhones, iPads, and Macs. But that’s untrue: Apple TV+ is pre-installed on nearly every new smart television, is available via an Android app, and has a great website. People don’t need to buy an Apple device to view TV+ content, and they aren’t incentivized to, either, since the third-party experiences are as good as the native apps on Apple devices. The Apple TV+ part of the business isn’t meant to generate a profit nor push more Apple device sales — it’s a way for Apple to immerse itself in pop culture.

The second season of “Severance” — available to stream exclusively on Apple TV+ and the TV+ channel on Amazon Prime Video — is a global cultural phenomenon. The Democratic Party is posting images of Britt Lower’s character, Helly Riggs, on its X feed to poke fun at the president, for heaven’s sake. Even Max, the streaming service owned by Warner Bros. Discovery, decided to post screenshots of the main “Severance” cast in its shows. Anyone who hasn’t watched “Severance” is missing out on a lot of fun, and the only way they can is by subscribing to Apple TV+.

The best part about the “Severance” spectacle is that the first season wasn’t even very popular. It was a slow burner and only began to take off after the season finale in April 2022 when everyone began watching and hearing about it on Twitter. Eventually, it did indeed become popular — and the TV critics loved it — but Apple could’ve skimped out on the amount of money it gave the creators. 2023 was a tough year for television thanks to the SAG-AFTRA and Writers Guild of America strikes, and it wasn’t immediately apparent if a second season of “Severance” would even be a hit. That would be the calculus if “Severance” was on any other network, especially Warner Bros. Discovery, which is notorious for canceling movies midway for tax breaks. It’s hideous how bad the entertainment industry is with funding good shows; Ted Sarandos, Netflix’s co-chief executive, publicly voiced confusion about why Apple TV+ exists.

Sarandos, David Zaslav, Warner Bros. chief executive, and Bob Iger, Disney’s chief executive, all have one thing in common: they see profitability as paramount. (Same with Paramount’s owners — pun unintended.) I’m not saying they don’t have good reason to because Netflix, Max, and Walt Disney Studios wouldn’t survive if they weren’t profitable. But the unprofitability of Apple TV+ is much of the reason why TV+ shows are so good and consistently renewed. Apple spent $20 million per episode on a show that wasn’t even a widespread success yet, and the gamble paid off. I don’t think “Severance” is profitable, but Apple TV+ was a must-have streaming service for a few months. When the next season of “Ted Lasso” comes out, people will subscribe again; same with “Shrinking.” None of these shows are profitable, but they’re cultural phenomena. That’s priceless.

“Severance” is such an artfully, beautifully crafted show — especially Season 2. Netflix’s shows are meant to be binged intermittently during social media scroll breaks. Disney+ is objectively for children and “Star Wars” die-hards. Max’s situation is perhaps the most dire, as a company once known for making the most well-crafted television has now turned into a B-list sitcom channel. Apple TV+ is what HBO used to be — a home for high-quality content made for adults with an attention to detail. “Severance” is not meant to be binged, and looking away for even a second is less than advisable because of how much detail is packed into each frame. There’s a whole subreddit and wiki dedicated to the most clever and hysterical theories about the show. No show in recent history has cultivated this much fandom. The “Severance” universe really does live on its own, and every bit of it is captivating. This attention to detail is only possible because Apple doesn’t pressure the creators to make binge-able television.

There’s no advertising-supported version of Apple TV+. There’s no need for one, either, because even the mere existence of one would tick off the astute viewers of TV+ content so much that Apple’s brand reputation would be in the toilet. There’s only one hugely successful company in the world that would lose over a billion dollars yearly just to make its content a tiny bit better: Apple. Profitability isn’t the focus — entertainment quality is. That’s why “Severance” exists — it caters to the same people who buy Apple products for their design or thoughtful technology. “Severance” has Apple’s DNA all over it, and it wouldn’t exist on any profit-driven network.