Apple Acquires Severance IP from Fifth Season

Apple has acquired the intellectual property and all rights to its Emmy-winning drama series Severance from production company Fifth Season in a deal valued at just under $70 million, finalized late last year. The move shifts production of the sci-fi workplace thriller in-house to Apple Studios, while Fifth Season retains a role as executive producer.

The acquisition comes amid significant financial challenges faced by Fifth Season during the production of the show's first two seasons. Costs for Season 2 escalated to as much as $20 million per episode, compounded by months of COVID-19 protocols, a prolonged shutdown due to the 2023 Hollywood strikes, writers' room adjustments, script revisions that led to scrapped sets and reshoots, and delays in New York tax credit payments. Borrowing rates for the studio rose from 1 percent to between 5.5 and 6 percent, straining finances over the 36-month gap between seasons. Fifth Season sought advances and payment assistance from Apple and even considered relocating production to Canada for faster tax rebates. Apple, viewing itself as better positioned to absorb these costs, initiated the buyout to integrate director-executive producer Ben...