Apple is Reportedly planning to spend $1 Billion a year on Films to raise its profile with Hollywood and Lure more Apple TV+ Subscribers
A new report this morning claims that Apple Inc. plans to spend $1 billion a year to produce movies that will be released in theaters that's part of an ambitious effort to raise its profile in Hollywood and lure subscribers to its streaming service.
Apple has approached movie studios about partnering to release a few titles in theaters this year and a slate of more films in the future. The list of potential releases includes Martin Scorsese’s Killers of the Flower Moon, which stars Leonardo DiCaprio; the spy thriller Argylle, from director Matthew Vaughn; and Napoleon, Ridley Scott’s drama about the French conqueror.
The investment is a significant increase from years past. Most of Apple’s previous original movies have either been exclusive to the streaming service or released in a limited number of theaters. The company has pledged to put movies in thousands of theaters for at least a month, said the people, though it hasn’t finalized any plans.
While Apple has agreed to theatrical releases in order to please talent and outmaneuver competitors for projects, the company also views theaters as a way to build awareness for its TV+ streaming service. If the company is going to spend hundreds of millions of dollars on a Scorsese movie, it wants to turn that into a cultural event. Apple TV+ is estimated to have between 20 million and 40 million subscribers, fewer than rivals such as Netflix and Disney+.
Netflix wants its movies to appear in theaters and online at the same time, or within a couple weeks. Major cinema chains have refused this arrangement." For more, read the full Bloomberg report.
If Major cinema chains refused to work with Netflix's arrangement, you wonder how Apple is going to get around this issue? Amazon addressed this by acquiring Metro-Goldwyn-Mayer in 2021 for $8.45 billion. Which makes you wonder if Apple is thinking of going this route themselves over time or advance "Apple Studios" to a whole new level.