Today, management and production company Sugar23 and Fifth Season, the production and distribution company behind shows like Apple TV+’s Severance, announced a new film and TV studio that aims to co-finance over $100 million in production with brand partners over the next three years.

The two companies will work closely with brands to create stories that resonate with their respective audiences. The joint venture will produce a range of content, including scripted, non-scripted, documentary, and feature films, as well as develop and produce series and films in more traditional models. 

Michael Sugar, co-founder and CEO of Sugar23, said his company has always been focused on finding a new bridge between advertisers and their audiences, and he believes the partnership with Fifth Season will continue to do that. 

“Our team comes from both worlds, so we’re not just going to a brand looking for money,” Sugar told ADWEEK. “We’re going to a brand looking for partnership on the kinds of entertainment properties that are actually going to be very helpful and create cultural moments for the brand.”

Sugar said the partnership will be two-fold in that he wants brands to have ownership in the entertainment proposition and bring them the opportunities at the earliest stage possible. By bringing in brands as seed investors, they’ll also have an impact on shaping the creative and production.

“They’re normally paying to be integrated,” Sugar said. “In this case, the brands are going to be investing rather than paying. That isn’t the critical thing, but it’s a big thing because brands are not normally invited to get involved that early. What this does is put fuel in the speed with which that transformation is going to happen because we’re hopeful that we become a first stop for brands and producers alike.”

The concept goes beyond simple branded content, Sugar said. The Sugar23 CEO previously spoke at ADWEEK’s Brandweek about the need for branded content to scale. He noted that the new projects are brand-funded and brand-forward premium entertainment.

Chris Rice, co-CEO of Fifth Season, said that Sugar’s experience working with brands combined with Fifth Season’s global reach will help take the productions to the next level.

Fifth Season has production hubs in the United States, United Kingdom, Australia, Canada, and continental Europe. Along with Severance, the company is also behind Max’s Tokyo Vice, HBO’s Scenes from a Marriage, and Hulu’s Life & Beth and Nine Perfect Strangers.

According to Rice, today, brands are often integrated at the point of production, or lower-tiered shows seek out brands when they can’t find funding elsewhere. The new studio is looking to move beyond that.

“What Michael has done is try to find what those tier-one opportunities are. What are the best creators, actors, directors—and how can we find the bridge to take the best ideas that naturally integrate themselves with a brand’s value in both directions, where it’s an enhancement for what the show is—not just a pure attempt at financing,” Rice said.

The deal was brokered on behalf of Sugar23 by David Fox and Dennis Buckle of Myman Greenspan Fox Rosenberg & Light.

Moving forward, Sugar emphasized that he wants to establish meaningful relationships with the holding companies, brands, and agencies they work with. The idea is to work within the advertising and brand landscape, not circumvent it.

“We’re not looking to disintermediate anybody or any group,” Sugar said. “We’re looking to eliminate friction. That’s where we found our success. We’ve created a faster path and a different model, but we are excited to continue to work both with the brands directly as well as their agencies and all the producers in Hollywood, many of whom are coming to us already and are invited into this model as well.”

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