Apple’s $70M ‘Severance’ Acquisition Mirrors Netflix’s Content Strategy
Apple acquired 'Severance' rights and IP from Fifth Season for about $70 million, establishing its own studio to produce four additional seasons. The move mirrors Netflix’s in-house content strategy that boosted its profitability and heightens competition for subscriber growth and content margins in streaming.
1. Apple Acquires 'Severance' Rights for $70M
Apple Studios paid around $70 million to acquire full rights and intellectual property for the series 'Severance' from Fifth Season, securing production control for at least two existing seasons and planning four more.
2. Netflix’s In-House Model Yields Profit
Netflix transitioned from licensing content to producing original shows decades ago, and its self-produced titles have driven margins higher, with viewership doubling from season one to season two on key series.
3. Increased Streaming Competition
By building its own studio, Apple directly adopts the content model that underpins Netflix’s profitability, intensifying competition for subscribers, negotiating leverage, and content budgets across the streaming landscape.