<p>When it comes to streaming video, there's <strong>Netflix</strong> <span class="ticker-mention inline-flex items-center font-bold">(NFLX <span class="ml-1 text-red-900">1.21%</span>)</span>, and there's everybody else. The company singlehandedly wrote the winning playbook for a successful streaming business and established many of the steps its rivals imitate to this day.</p>
<p>For example, when Netflix first launched its streaming service, the company relied on licensed movies and television shows from other providers before ultimately bringing the process in-house and betting big on its own original content. Since then, the company has regularly acquired intellectual property and hired some of Hollywood's top talent to create Netflix Originals to augment its licensed content.</p>
<p>Now, it seems <strong>Apple</strong> <span class="ticker-mention inline-flex items-center font-bold">(AAPL <span class="ml-1 text-red-900">1.43%</span>)</span> is taking a page straight out of the Netflix playbook.</p>
<div><img alt="A hand holding an iPhone showing the Apple logo." width="880" height="528" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTY4NDgvYS1oYW5kLWhvbGRpbmctYW4taXBob25lLXNob3dpbmctdGhlLWFwcGxlLWxvZ28ucG5nJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTY4NDgvYS1oYW5kLWhvbGRpbmctYW4taXBob25lLXNob3dpbmctdGhlLWFwcGxlLWxvZ28ucG5nJnc9Mzg0MA"/>
<p>Image source: Getty Images.</p>
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<h2><em>Severance</em></h2>
<p>In a move that turned heads, Apple has acquired full ownership of <em>Severance</em>, according to Hollywood industry publication Deadline. The dystopian thriller is one of the most-watched programs ever on Apple TV and the most-nominated program at the 2025 Emmy Awards, bagging 27 nominations and winning eight awards. It acquired the rights from television studio Fifth Season in a deal reportedly worth $70 million. Apple is also keeping the successful creative team together, including creator, executive producer, and showrunner Dan Erikson and executive producer and director Ben Stiller.  </p><div><div id="foolcom_sidebar_top_container"></div></div>
<p>Despite its popularity, <em>Severance</em> has had its share of challenges, including significant restrictions while filming during the global pandemic and a nearly nine-month shutdown courtesy of back-to-back Hollywood strikes in 2023. That caused a three-year lapse between the release of season one and season two, something Apple is looking to avoid in the future. Fans have been eager for the next chapter of the show, and reports suggest the third season could begin filming as early as this summer.</p><div></div>
<p>Apple has big plans for the critically acclaimed series, including producing future seasons of the hit show in-house and potentially expanding the <em>Severance</em> franchise. Under consideration are possible spin-offs, a prequel, and foreign versions of the show.</p><div><div id="in_line_article_pitch_container"></div></div>
<h2>Why this could be a brilliant move</h2>
<p>As I pointed out earlier, Netflix was a pioneer in the streaming space, relying on licensed content while building a library of wholly owned original programming. Apple's move to acquire the full rights to <em>Severance</em> follows the playbook that Netflix has used so successfully. Furthermore, the show is already a hit, so it's a known quantity and has already established its value for Apple TV.</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Apple Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FBUEwucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FBUEwucG5nJnc9MTI4"/></div><div><h2>NASDAQ: AAPL</h2><div>Apple</div></div></div><div><div><div>Today's Change</div><div>(-1.43%) $-3.77</div><div>Current Price</div><div>$260.58</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$3.8T</div><div>Day's Range</div><div>$260.05 - $264.48</div><div>52wk Range</div><div>$169.21 - $288.62</div><div>Volume</div><div>31M</div><div>Avg Vol</div><div>49M</div><div>Gross Margin</div><div>47.33%</div><div>Dividend Yield</div><div>0.40%</div></div></div></div></section>
<p>While most of the streaming services bill themselves as all-you-can-watch buffets, Apple has taken the high ground, positioning itself as a premium brand. The company continues to focus on fewer creator-driven shows and award-winning programs.</p>
<p>Management doesn't break out Apple TV results, but aggregates them with its services segment. Furthermore, Apple hasn't disclosed how many streaming subscribers it has, though industry estimates put the figure at 45 million. Reports also suggest the company is losing more than $1 billion annually on the service as it builds out its content library and focuses on the long term. </p>
<p>Apple has always positioned itself as a premium brand, and that has worked extremely well for the iPhone, which closed out 2025 as the world's top-selling smartphone. It makes sense that the company would take the same approach with its streaming service. Owning the rights to <em>Severance</em> is another step in establishing its bona fides as a premium provider, a move that will pay dividends for Apple over the long term.</p>
<p>Furthermore, investors shouldn't underestimate Apple. The company has a long history of entering markets slowly and building its business over time before becoming the market leader. The strategy has been used successfully with the iPhone, iPad, AirPods, and Apple Watch. </p>
<p>Netflix closed out 2025 with 325 million subscribers, so Apple may never become the market leader in streaming video, but I certainly wouldn't count the company out. It has proven doubters wrong before.</p>
<p>At 33 times earnings, Apple is selling for a premium, but given the company's track record and the recent rebound in iPhone sales, the stock is worth every penny.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

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<p>Apple has acquired full ownership of the hit series "Severance" for $70 million, following a strategy similar to Netflix's original content model. The show, which has received 27 Emmy nominations, will continue under its original creative team. Apple aims to produce future seasons in-house and explore spin-offs, enhancing its premium brand in the streaming market. Despite current losses in its streaming service, Apple's long-term strategy mirrors its successful approach in other product lines, positioning it as a serious contender in the industry.</p>

- Apple has acquired full ownership of the critically acclaimed series Severance for around $70 million, following Netflix's successful approach of integrating original content.  
- The show has faced challenges, including pandemic-related filming restrictions and Hollywood strikes, but fans anticipate the third season's filming this summer.  
- By owning Severance, Apple aims to strengthen its position as a premium streaming provider, paralleling Netflix's strategy, despite currently incurring losses on its streaming service.

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Apple Just Took a Page Straight Out of the Netflix Playbook. Here's Why It Could Be a Brilliant Move