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

By Danny Vena, CPA – Feb 20, 2026 at 3:02AM ESTKey PointsApple recently turned heads, acquiring the full rights to its hit show "Severance."The company plans to add new seasons and expand the existing franchise.Netflix was a pioneer in streaming, building a library of fully owned content to augment its licensed content, a strategy that was wildly successful. We’re bullish on these 10 stocks ›NASDAQ: AAPLAppleMarket Cap$3.8TToday's Changeangle-down(-1.49%) $3.93Current Price$260.42Price as of February 19, 2026 at 3:58 PM ETNetflix augmented its licensing deals with its owned original content. Apple is playing follow the leader.When it comes to streaming video, there's Netflix (NFLX 1.21%), 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. 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. Now, it seems Apple (AAPL 1.49%) is taking a page straight out of the Netflix playbook. Image source: Getty Images. Severance In a move that turned heads, Apple has acquired full ownership of Severance, 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. Despite its popularity, Severance 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. Apple has big plans for the critically acclaimed series, including producing future seasons of the hit show in-house and potentially expanding the Severance franchise. Under consideration are possible spin-offs, a prequel, and foreign versions of the show. Why this could be a brilliant move 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 Severance 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. ExpandNASDAQ: AAPLAppleToday's Change(-1.49%) $-3.93Current Price$260.42Key Data PointsMarket Cap$3.8TDay's Range$260.05 - $264.4852wk Range$169.21 - $288.62Volume1.2MAvg Vol49MGross Margin47.33%Dividend Yield0.40% 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. 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. 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 Severance is another step in establishing its bona fides as a premium provider, a move that will pay dividends for Apple over the long term. 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. 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. 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.Read NextFeb 18, 2026 •By Daniel SparksIn a Vote of Confidence for Apple Stock, It Is Berkshire Hathaway's Biggest Investment as Warren Buffett Steps Down as CEOFeb 18, 2026 •By Catie HoganDown 6%, Should You Buy the Dip on Apple?Feb 17, 2026 •By Joe TenebrusoWhy Apple Stock Rose TodayFeb 17, 2026 •By Eric TrieStock Market Today, Feb. 17: Apple Rebounds as AI Strategy Heads Into High-Profile March EventFeb 16, 2026 •By Neil PatelShould You Buy Apple Stock While It's Under $270?Feb 12, 2026 •By Joe TenebrusoWhy Apple Stock Fell TodayAbout the AuthorDanny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.TMFLifeIsGoodX@dannyvenaStocks MentionedAppleNASDAQ: AAPL$260.42 (1.49%) $3.93NetflixNASDAQ: NFLX$77.05 (1.21%) $0.94*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.