Apple TV+ Retreating From Ambitious Film Strategy Following Disappointing Results
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Apple is pulling the reins back on its original ambitious plans to first release its films in wide theater release before streaming them exclusively on its Apple TV+ streaming service. The move comes after several of its big budget releases disappointed at the box office, Bloomberg reports.
Last year, Apple reportedly planned to spend $1 billion annually on big-budget blockbusters to play in cinemas, competing with traditional Hollywood movie studios. The company was looking to quickly gain a good reputation in the industry by driving ticket sales with blockbuster cinematic events that would do well at the box office while scoring with critics and winning awards. Unfortunately for Apple, that’s not how things have panned out so far.
Apple spent $700 million on several films that were expected to do well at the box office, including Ridley Scott’s Napoleon, Matthew Vaughn’s Argylle, and Martin Scorsese’s Killers of the Flower Moon. However, all three of those films delivered disappointing returns on their investments. This has led Apple to scale back on its initial plans, instead opting for more limited releases in theaters, followed quickly by streaming them exclusively on Apple TV+.
Case in point: last week’s streaming premiere of the George Clooney and Brad Pitt action comedy vehicle Wolfs. While Apple had planned a wide theatrical release for the film, it instead released it in a limited number of theaters for a short time before premiering it on Apple TV+ last week. While the film received a mostly positive reception from critics, the Cupertino company is believed to have decided against a wide release due to the less-than-spectacular box office performance of other recent Apple Original films, including the three previously mentioned movies.
Apple has reportedly been working to control costs for its entertainment division. The company remains committed to spending large amounts of money on movies and other content while scaling back on the number of theatrical releases and keeping the budget under control for the movies it produces. According to a source familiar with Apple’s plans, the company’s production studio will continue to crank out around a dozen films per year but will work to keep the budgets for most of those to under $100 million each.
This doesn’t mean we won’t see any big-budget blockbusters from Apple. However, such projects will likely be limited to one or two major titles per year. One such film is the upcoming Brad Pitt vehicle F1, which is set for a global release in June 2025. The film is expected to be Apple’s most expensive flick to date, with a reported production budget of more than $300 million.
Apple is also still proceeding with its plans for a 536,000-square-foot office building in Culver City, California, that will serve as headquarters for 3,000+ employees by 2026. However, actors, producers, writers, and stagehands in Hollywood may have to temper their expectations of huge paydays.
Apple’s change in plans comes as other big streaming services, like Netflix and Amazon, are also re-examining their strategies. Both streamers are considering cutting back on budgets and perhaps the number of films they produce each year.
