Apple Acquires Full Rights to “Severance” in $70 Million Deal, Cementing Its Status as a Flagship Franchise

In a bold strategic move that signals Apple’s growing confidence in its streaming ambitions, the tech giant has officially acquired full rights to the critically acclaimed psychological thriller “Severance” from Fifth Season for a reported sum just under $70 million. This acquisition marks a significant milestone for Apple Studios, bringing the Emmy-winning series entirely in-house and setting the stage for what could become one of Apple TV+’s most enduring franchises.

A Calculated Power Move in the Streaming Wars

The deal represents more than just a financial transaction—it’s a statement of intent from Apple as it continues to build its content empire. “Severance,” created by Dan Erickson and executive produced by Ben Stiller, has emerged as one of Apple TV+’s most successful original series since its debut in 2022. The show’s unique premise—employees at a mysterious corporation undergo a procedure that separates their work memories from their personal lives—has captivated audiences and critics alike, earning 27 Emmy nominations and eight wins in 2025 alone.

By acquiring the intellectual property and all associated rights, Apple gains unprecedented control over the show’s future. This move allows the company to bypass licensing fees, streamline production decisions, and potentially expand the “Severance” universe through spinoffs, prequels, and international adaptations—all while keeping the series firmly rooted in its established New York filming locations.

The Production Nightmare That Led to This Deal

The acquisition comes in the wake of a notoriously troubled second season. Sources familiar with the production describe a perfect storm of challenges that pushed the show’s budget to an eye-watering $20 million per episode. The COVID-19 pandemic caused initial delays, followed by Hollywood labor strikes that brought production to a standstill. Script revisions necessitated extensive reshoots and even the scrapping of entire sets, while rising borrowing costs created financial strain for Fifth Season as the studio awaited New York tax credits and funding reimbursements.

The production woes were so severe that Fifth Season reportedly approached Apple for financial advances and even considered relocating filming to Canada, where tax incentives are more generous and the approval process faster. However, Apple executives saw an opportunity in the chaos. By acquiring full ownership, they could better absorb the financial risks associated with lengthy production timelines while maintaining the show’s authentic New York aesthetic—a crucial element of its distinctive atmosphere.

Apple Studios’ Evolution and Strategic Vision

This acquisition represents a maturing of Apple Studios as it approaches its seventh year of operation. Currently, Apple Studios produces approximately half of Apple TV+’s content slate, but the company has been systematically bringing high-performing shows under its direct control. The “Severance” acquisition follows a similar pattern to what happened with “Silo,” another sci-fi series that transitioned to full Apple Studios production after its first season.

Industry analysts view this as part of Apple’s broader strategy to reduce dependency on external studios and build a more sustainable content pipeline. By owning its most valuable IP outright, Apple can make long-term creative and financial commitments without the complications of licensing agreements or profit-sharing arrangements with third-party producers.

A Franchise in the Making

Perhaps the most significant aspect of this deal is Apple’s vision for “Severance” as a multi-generational franchise. The series has already been officially renewed for a third season, with a fourth season considered all but guaranteed. However, Apple’s ambitions extend far beyond these immediate seasons. According to sources cited by Deadline, the company sees “Severance” as a potential flagship franchise that could span multiple iterations and formats.

Creator Dan Erickson and executive producer Ben Stiller have expressed openness to expanding the “Severance” universe. This could include prequel series exploring the origins of Lumon Industries, spinoff shows focusing on different departments within the company, or even international adaptations that explore how the severance procedure might manifest in different cultural contexts. The acquisition gives Apple the creative freedom to pursue these expansions without negotiating rights with external parties.

Production Plans for Season Three

Looking ahead, production on the third season is tentatively scheduled to begin this summer, though sources indicate the start date may slip slightly as the creative team finalizes scripts. Six scripts have reportedly been completed, with additional episodes still in development. Apple and the show’s creative team are determined to avoid the production pitfalls that plagued season two by ensuring all scripts are finished before filming begins.

This approach—often referred to as a “writers’ room first” strategy—represents a significant shift in how Apple approaches high-budget productions. By front-loading the writing process, the company hopes to minimize costly shutdowns, reduce the need for extensive reshoots, and maintain tighter control over the production schedule and budget. It’s a lesson learned from the “Severance” experience that Apple appears eager to apply across its content portfolio.

Cultural Impact and Audience Reception

The timing of this acquisition is particularly noteworthy given “Severance’s” cultural impact. Season two became Apple TV+’s most-watched series at the time of its release, demonstrating the show’s ability to attract and retain subscribers—a crucial metric in the competitive streaming landscape. The series has sparked countless online discussions, fan theories, and even academic analyses exploring its themes of workplace alienation, identity, and corporate control.

The show’s success has also elevated Apple TV+’s profile in Hollywood, helping the platform compete with more established streaming services like Netflix, HBO Max, and Disney+. By acquiring full rights to its breakout hit, Apple is sending a clear message to both audiences and industry competitors: it’s committed to building lasting franchises rather than chasing short-term viewership numbers.

Financial Implications and Industry Context

The $70 million price tag for “Severance” may seem steep, but industry experts suggest it represents a sound investment for Apple. When factoring in the costs of licensing, profit-sharing, and the production challenges of season two, the acquisition could actually prove cost-effective over the long term. Moreover, as Apple continues to expand its services revenue—which includes Apple TV+—owning valuable IP becomes increasingly important for building a sustainable business model.

This deal also reflects broader trends in the streaming industry, where major players are increasingly seeking to own their most valuable content rather than license it. Netflix has pursued a similar strategy, and Disney’s entire business model is built around leveraging its vast library of owned IP. Apple’s acquisition of “Severance” positions the company to compete more effectively in this landscape, where content ownership often translates to long-term profitability and creative control.

Looking to the Future

As Apple TV+ continues to evolve, the “Severance” acquisition offers a glimpse into the company’s long-term content strategy. Rather than simply producing shows for immediate consumption, Apple appears focused on building franchises with multi-season arcs and expansion potential. This approach requires significant upfront investment and patience, but it could pay dividends as the streaming market matures and competition intensifies.

For fans of the show, the acquisition likely comes as welcome news. Full ownership by Apple Studios could mean more consistent production schedules, greater creative freedom for the show’s creators, and the potential for an expanded universe that delves deeper into the mysteries of Lumon Industries. However, it also raises questions about how Apple will balance creative vision with its corporate interests—a tension that has played out in various ways across the entertainment industry.

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