A new report from Bloomberg indicates that Apple plans to spend $1 billion yearly on theatrical film releases. The move is part of the tech giant’s efforts to boost its profile in Hollywood and attract subscribers to its streaming platform, Apple TV+.
According to the Bloomberg report, the company has approached film studios about collaborating upon such titles for release this year and in the coming years.
Theatrical film releases can be a big moneymaker for cinema stocks and the movie industry. They help boost a title’s profile, especially when it’s coming out during awards season. They also help boost ticket sales for the movie.
The film industry has been battling to preserve theatrical distribution since the digital revolution, with many major stars and filmmakers pushing for it. But the digital age has shortened the life span of a film, and with so much content now being released to the internet, it’s hard for an audience to get behind a movie that has yet to be seen in a theatre.
That’s why streaming companies like Amazon and Netflix have been stepping up their efforts to produce more films for theaters. As a result, these movies can often attract Academy Awards nominations or bring in the most money at the box office.
As a result, they’re investing in marketing campaigns that can cost upwards of $100 million per movie. This involves creating trailers, sending stars to different locations to promote the movie, holding press junkets, and other activities.
This could be a significant step for Apple, which has previously primarily devoted its budget to streaming original content. Last year, the tech giant spent $6.5 billion on television programs and films. With this report, Bloomberg suggests that Apple partner with established film production companies to handle international theatrical distribution. This will be separate from Apple’s plans for its upcoming Apple Original Films unit, which is currently underway.
The reports suggest that the company has been in talks with various distributors and has internally committed to screening films in thousands of theatres for at least one month.
However, the details are still being worked out, including the size of marketing budgets and distribution commissions for the partner studio.
Some of the possible theatrical titles include Martin Scorsese’s upcoming crime drama Killers of the Flower Moon, Matthew Vaughn’s spy thriller Argylle, and Ridley Scott’s historical drama Napoleon.
These high-profile projects would likely attract a substantial theatrical release shortly.
A significant theatrical release can help a film build a reputation and help it attract the attention of crucial talent. It also helps increase awareness of the movie’s streaming data, which can drive subscriptions to the Apple TV+ service.
But the plan is still in its early stages, and Apple’s commitment could put it in a tighter battle with streaming services like Amazon and Netflix.
