Apple Buys ‘Severance’: Future Seasons & Expansion Plans Revealed

Apple has taken complete ownership of the critically acclaimed drama series Severance, acquiring all intellectual property rights from Fifth Season in a deal finalized late last year. The move signals a significant shift in how the series will be produced, with Apple Studios now taking the reins directly, while Fifth Season will continue as an executive producer. The acquisition, reportedly valued at just under $70 million, reflects Apple’s growing commitment to in-house content creation and its confidence in the long-term potential of the show.

Severance has quickly become a flagship title for Apple TV+, garnering significant viewership and critical acclaim, including numerous Emmy nominations. The second season, however, presented substantial production challenges, prompting Apple to consolidate control. The series’ complex narrative and high production value—estimated at $20 million per episode for the ten-episode second season—created financial pressures that Apple believes it can better manage through direct ownership.

A Prolonged Second Season Drives the Change

The second season of Severance experienced a particularly lengthy and complex production cycle, spanning from October 2022 to April 2024—a total of eighteen months. This extended timeline was impacted by a combination of factors, including an eight-and-a-half-month pause due to the Hollywood writers’ and actors’ strikes, ongoing COVID-19 protocols extending into May 2023, script revisions, and the need to rebuild sets following location changes. These disruptions significantly increased production costs.

Financial strain on Fifth Season was exacerbated by delays in receiving tax credits from New York State and rising interest rates, which climbed from 1% to 5.5%-6%, making it more difficult to finance the production gap of up to 36 months between seasons. Fifth Season even considered relocating production to Canada to take advantage of more favorable tax incentives. However, Apple recognized the creative importance of maintaining production in New York, where the show’s elaborate sets are located and a skilled production team is established.

By assuming full ownership, Apple can absorb potential delays in tax rebates and avoid relocating production solely for financial reasons. This allows for greater stability and creative control over the series’ future.

Four Seasons Confirmed, with Expansion Potential

Apple has officially renewed Severance for a third season, and a fourth season is already in advanced planning stages. While the creative team, led by director Ben Stiller and creator Dan Erickson, initially envisioned a four-season arc, Apple is now exploring opportunities to expand the Severance universe beyond that timeframe. This includes considering prequels, spin-offs, and even international adaptations of the series.

This strategy is designed to maintain audience engagement during potential gaps between seasons and capitalize on the growing popularity of the franchise. The long production cycles and high costs associated with Severance necessitate a diversified approach to content creation.

Season Three Production to Begin This Summer

Apple aims to begin production on the third season this summer, with six scripts already completed, a seventh in outline form, and a few more still in development. A key lesson learned from the second season is the importance of having a fully developed script bank before commencing filming. Severance’s intricate plot requires a cohesive narrative structure, and changes made during production can be costly and time-consuming to rectify.

Kogonada, known for his work on Apple TV+’s Pachinko, will direct the upcoming season, bringing a distinct visual style and pacing to the series. His involvement underscores Apple’s commitment to maintaining the show’s high production quality.

Apple Studios Strengthens its Position

This acquisition is part of a broader strategy by Apple to build out Apple Studios, its in-house production arm. Over the past six years, Apple Studios has grown to produce nearly half of the content on Apple TV+. Initially, Apple relied on licensing series from external studios, such as Ted Lasso and The Studio, to quickly scale its streaming service. However, the company has increasingly focused on internal production to gain greater control over costs, creative decisions, and scheduling.

The transition mirrors a similar move with the series Silo, which also shifted from AMC Studios to Apple Studios after its first season. By producing content in-house, Apple avoids paying the 20-30% premium typically charged by external studios for management and overhead. Apple has also introduced a performance-based bonus system for its in-house productions, allowing talent to earn additional compensation based on subscriber growth and viewership metrics. This incentivizes creative teams to deliver high-quality content that attracts and retains viewers.

The third season of Severance is currently slated for release in 2027. Apple’s substantial investment and commitment to the series suggest a long-term vision for the franchise, and the acquisition marks a significant step in solidifying Apple Studios’ position as a major player in the streaming landscape.