Apple has acquired all rights to the hit series "Severance". According to a report by Deadline, the company paid approximately $70 million to fully acquire the intellectual property. The series now belongs directly to Apple Studios. This move has both financial and strategic motivations and could significantly impact the future of the show.
Previously, "Severance" was produced by Fifth Season, with Apple acting as the distributor. With the acquisition of the rights, this structure changes fundamentally. Apple will now produce the series itself through Apple Studios. However, Fifth Season will remain involved and will serve as an executive producer alongside series creator Dan Erickson.
The decision is not solely motivated by creative reasons. It is primarily related to increased production costs and financial burdens surrounding season 2.
Apple secures the intellectual property rights to "Severance"
The deal includes all intellectual property and rights to "Severance". Apple reportedly paid nearly $70 million. The series is now fully owned by Apple Studios.
Previously, Fifth Season was the lead producer, with Apple acting as the streaming partner via Apple TV. The acquisition gives Apple complete control over production, financing, and marketing. A key factor in the deal was Fifth Season's financial situation.
Rising production costs and financial problems
"Severance" is being filmed in New York. There are government tax credits for film and television productions there. However, there have been delays in the disbursement of these credits.
At the same time, production costs for season 2 rose significantly. In addition, there was a massive increase in interest rates. While loans had previously carried interest at around 1 percent, rates rose to 5.5 to 6 percent. This made bridging finance considerably more expensive.
The long gap between season 1 and season 2 was particularly problematic. Approximately 36 months passed between the seasons. During this time, high production costs had to be pre-financed. If tax refunds were delayed and interest rates rose, the financial burden would increase accordingly.
According to the report, Fifth Season asked Apple TV for advances and assistance with payments. Internally, they also considered moving production from New York to Canada, where larger and more readily available tax refunds would have been possible.
Apple TV's management concluded that it made more financial sense for Apple to own the series itself. As the owner, Apple could better bear the financial burden and stabilize it in the long term.
Expansion of the "Severance" universe planned
Currently, "Severance" is planned for four seasons. But the creative minds behind the series are thinking ahead. Producers Ben Stiller and Dan Erickson are open to additional projects in the same universe. Among those being discussed are:
- Prequels
- Spin-offs
- Foreign versions
Such expansions could help bridge long waiting times between seasons while simultaneously increasing the brand's profitability.
Season 2 attracted roughly twice as many viewers as Season 1. At the same time, costs reached up to $20 million per episode. With full control, Apple will be able to better balance growth and cost management in the future.
New compensation model at Apple TV
Another aspect concerns the business structure behind the series. In 2024, Apple TV became the first streaming service to introduce a performance-based compensation model for actors in series produced by Apple Studios. The model is based on a points system. The amount of the bonuses depends on:
- how many people sign up for Apple TV because of a series
- how high the audience numbers are in relation to the production costs
This system is similar to the earlier model of television syndication. It follows the principle of "more risk, more reward". Most major streaming providers have now adopted similar models.
With full control over "Severance", Apple can now recalibrate the compensation of the actors as well as backend deals and adjust them to its own economic goals.
Season 3 in preparation, filming start likely delayed
Most of the scripts for season 3 are already finished. Nevertheless, the development process took longer than originally planned.
Apple still hopes to begin filming this summer. However, according to reports, the planned start of filming is likely to be delayed by several weeks.
Strategic move: Apple secures the rights to "Severance"
The purchase of all rights to "Severance" is primarily a business decision. Rising production costs, higher interest rates, and delayed tax breaks put the previous producer under pressure. Apple responded with the complete acquisition.
This gives the corporation control over financing, production, and potential expansions of the universe. Up to four seasons are planned, but additional projects such as spin-offs or international versions are possible.
At the same time, Apple's own compensation model and direct studio responsibility allow it to better control costs and growth. "Severance" thus remains a key component of Apple's streaming strategy. (Image: Apple)
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