On Sunday, Apple Inc.'s (AAPL  0.24%) services chief Eddy Cue shared insights into Apple TV+'s selective content strategy while praising the global success of "Severance," calling it one of the most culturally impactful shows of recent years.

What Happened: During a panel at the SXSW festival in Austin, Texas, Cue joined actor-director Ben Stiller for a wide-ranging discussion on the breakout success of Severance and Apple TV+'s content approach.

"It's been a long time since we've seen a show capture the imagination like this," Cue said of Severance, which Apple says is now its most-watched series ever on the platform.

Despite having early access to episodes, Cue admitted he still waits for each weekly drop: "I tend to wait... I just love the storytelling."

Cue emphasized Apple TV+'s strategy of focusing on quality over quantity. "We're not going to throw 20 shows up against the wall and hope that one sticks," he said. "The ones that we do - they all need to stick. Otherwise, we have nothing else."

Why It's Important: Cue's remarks highlight Apple's continued focus on prestige programming in a crowded streaming landscape.

Rather than emulate rivals like Netflix Inc. (NFLX  3.49%) with a high-volume output, as Cue highlighted, Apple TV+ plans to carve out a niche with select, critically acclaimed titles.

Severance, created by Dan Erickson and directed by Stiller, explores a dystopian workplace where employees are surgically separated from their personal lives.

With appearances by Adam Scott, Patricia Arquette, and Christopher Walken, Severance is shaping up to be Apple TV+'s flagship franchise.

Now in its second season, the series has earned critical acclaim and a cult following. Apple has already confirmed a third season is in development.

Unlike Netflix shows that drop all episodes at once for binge-watching, "Severance" follows a weekly release schedule, with its season 2 finale set for March 21.

Apple's streaming service costs $9.99 per month, making it one of the more affordable ad-free options available.

Price Action: Apple's stock ended Friday at $239.07, gaining 1.59%. It later slipped 0.15% in after-hours trading, according to Benzinga Pro data.