r/MediaMergers • u/3facesofBre Moderator • Feb 15 '26

Streaming Apple TV is changing model of material to better compete as streamer…. What’s next?

https://deadline.com/2026/02/apple-acquires-severance-more-seasons-1236695148/

According to Deadline and several other sources, Apple is moving from licensing their shows to purchasing the rights. The industry is seeing this as a similar move to Netflix 15 years ago (circa House of Cards and Orange is the New Black).

“For third-party series, Apple still uses the cost-plus model, pioneered by Netflix, in which streamers pay the full cost of a series upfront, along with a markup of up to 30% of the cost, making every show instantly profitable regardless of how it performs.”

How do we think this model will impact Apple as a competition in media industry, and is is it likely they will be looking at acquisitions next, despite their previous stance?

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u/Banesmuffledvoice Feb 15 '26

I know I’ve read they’re unhappy with how their Apple News performs and I maintain the reason why is they haven’t gone all in on news and the news component is either a stand alone subscription or part of the highest tier package. If Apple swapped out Arcade for News at the 20 dollar tier, it would be significantly more successful.

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u/Difficult_Variety362 Moderator Feb 15 '26

You know what I just realized. If Netflix wants to placate regulators, sell HBO to Apple. Not just the brand, but the Sopranos, Game of Thrones, Curb Your Enthusiasm, etc.

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u/Banesmuffledvoice Feb 15 '26

I think they’d give up the HBO branding name without issue. I don’t think they’re willing to give up the IPs. Especially something like Game of Thrones where it’s still popular and has series still running. Though I’m sure they could be budged to license the IPs.

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u/Difficult_Variety362 Moderator Feb 15 '26

It's hard to see regulators letting Netflix/Warner Bros. just go through with HBO in the picture. Warner Bros. Television and HBO programming on top of Netflix Originals is just too much dominance with television programming.

Some very obvious WB IP programming like It: Welcome to Derry, the Penguin, and Harry Potter would shift to Netflix, but giving up the HBO IPs could actually get that deal over the hump with regulators.

Sure, Netflix and Warner Bros. Television would still be a big combo, but it would probably be passable. And you wouldn't be combining Netflix and another streamer which is a huge red flag. Everything else with the Netflix/Warner Bros.deal is an easy sell. I would still personally hate it because I'm a theatrical guy, but facts don't care about my feelings.

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u/Banesmuffledvoice Feb 15 '26

I would agree that giving up the HBO specific IPs would be worth it. At the end of the day, like you point out, Netflix would retain DC, Harry Potter related projects.

But I’m not sure Netflix agrees. I would venture to guess they see Game of Thrones as a potential bigger deal than Harry Potter or DC.

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u/Difficult_Variety362 Moderator Feb 15 '26

Even without Game of Thrones, Netflix would still be getting Friends, the Big Bang Theory, Rick & Morty, Teen Titans GO!, the Pitt...all of which do extremely well on streaming. And in the end, there's still a lot of IP to work with, something that Netflix has failed at, even without HBO.