Apple Acquires Full Rights to ‘Severance,’ Paving the Way for Franchise Expansion
In a strategic move to bolster its original content portfolio, Apple has secured complete ownership of the acclaimed series Severance, transitioning the production entirely under the umbrella of Apple Studios. This acquisition not only grants Apple comprehensive control over the show’s creative and operational aspects but also sets the stage for potential expansions, including spinoffs and prequels.
Transition to In-House Production
Previously, Severance was produced by Fifth Season, with Apple serving as the distributor. Under the new arrangement, Apple Studios will assume direct production responsibilities, while Fifth Season will continue its involvement as an executive producer alongside series creator Dan Erickson and executive producer Ben Stiller. This shift signifies Apple’s commitment to consolidating its content creation processes and enhancing its influence over flagship series.
Financial Considerations and Acquisition Details
According to reports, Apple invested nearly $70 million to acquire the intellectual property and all associated rights to Severance. The decision was influenced by escalating production costs, delays in tax credits in New York, and increased borrowing rates, which collectively imposed financial strains on Fifth Season during the production of Season 2. By bringing production in-house, Apple aims to manage these financial challenges more effectively, mitigating issues related to tax rebate delays and avoiding the need to relocate production for economic reasons.
Expansion Plans and Future Seasons
Severance has already been renewed for a third season, with a fourth season included in Apple’s long-term strategy. While the creators initially envisioned a four-season narrative arc, there is openness to expanding the universe through prequels, spinoffs, or international adaptations. This approach could help maintain audience engagement during intervals between seasons and capitalize on the series’ growing popularity.
Season 2 reportedly had a production cost of up to $20 million per episode. Despite the substantial investment, viewership doubled compared to Season 1, indicating a strong return on investment. Apple now seeks to balance creative ambitions with more stringent cost management practices.
Production for Season 3 is slated to commence in the summer, though filming schedules may adjust as scripts are finalized. Apple plans to complete all scripts before initiating shooting to prevent costly delays and reshoots, ensuring a more streamlined production process.
Strategic Implications for Apple Studios
By securing full ownership of Severance, Apple gains enhanced flexibility in budgeting, talent negotiations, and long-term franchise planning. This move reflects Apple’s broader strategy to strengthen its position in the competitive streaming market by investing in original content that resonates with audiences and defines the platform’s brand identity.
