Apple Inc AAPL owned streaming platform AppleTV+ is one of the smaller players in the streaming market.
When it comes to star power, Apple has landed some big names. A movie with two of the biggest actors around could help boost the future outlook.
What Happened: With ballooning budgets and tough decisions on whether to play movies in cinemas, and then stream them on AppleTV+, the technology giant recently announced it would scale back movie budgets.
That decision comes after Apple recently debuted “Wolfs” in a limited theatrical release ahead of its Sept. 27 streaming premiere on AppleTV+.
While most films starring George Clooney and Brad Pitt, would command a premium budget and likely see a strong box office run, the “Wolfs” stars have denied getting a reported $35 million each and said they were paid less for the film
After originally planning on releasing the movie widely in movie theaters, Apple made the decision to switch to a limited run ahead of the streaming premiere.
The decision may have paid off with Apple saying “Wolfs” is now the most viewed movie in AppleTV+ history, without providing a specific figure.
“Wolfs” helped boost viewership on AppleTV+ by 30% week-over-week after the movie’s premiere according to a report from Deadline.
The film, which premiered at the Venice Film Festival, has already been green lit for a sequel by Apple, with the film’s writer and director Jon Watts returning.
“When George, Brad and Jon approached us with the idea for ‘Wolfs,’ it was an easy call – a crackling, fun movie starring two Oscar winners who everyone knows are iconic together,” Apple Original Films’ head of features Matt Dentler said.
Dentler said AppleTV+ could be the “home for the world’s most talented artists to create and deliver their best work” and the audience viewership has been existing.
Did You Know?
Why It Matters: Apple TV+ was launched on Nov. 1, 2019. It marked Apple’s entry into the competitive streaming market, which is dominated by Netflix Inc NFLX.
While the decision not to run the movie in theaters may have been tough for Apple and left money on the table, it likely means a boost to streaming viewership figures and potentially an uptick in subscriber.
Apple has seen recent success at the Academy Awards with “CODA,” which won a historic Oscar for Best Picture at the 94th Academy Awards.
Other Apple-produced movies also saw theatrical releases. They include:
- “Killers of the Flowers Moon“: $67.9 million domestic, $89 million international, $156.9 million global
- “Napoleon“: $61.5 million domestic, $159.5 million international, $221 million global
- “Argylle“: $44.2 million domestic, $48.2 million international, $92.5 million global
In total, the three movies cost around $700 million for Apple and grossed $470.4 million worldwide, according to BoxOfficeMojo.
While the box office figures didn’t break even on costs, a studio source told Variety that both “Killers of the Flower Moon” and “Napoleon” were profitable thanks to other revenue streams.
Netflix, in contrast, rarely uses the theater distribution model for its films. But Apple has adopted a strategy of premiering its major films in theaters before offering them exclusively on its streaming platform, Apple TV+.
This model helps Apple recover some of its costs and could also help the company be a staple for award shows that require a theatrical run.
Apple finds itself in a difficult place with the need to spend more on content to boost subscribers, but also having less to spend on movies and content due to a smaller subscriber base. With the parent company a cash cow, Apple may be able to maintain losses for its streaming business if it chooses to, but could also push for a larger focus on profits.
Reports say Apple is considering launching an ad-supported streaming plan soon, which could help alleviate some of the revenue concerns and bring in more money to be spent on content.
The company previously acquired the rights to Major League Soccer and select Major League Baseball games. The MLS bet paid off with superstar Lionel Messi joining the league and Apple seeing a boost in subscribers to the platform.
Apple will release “Blitz” in select theaters on Nov. 1 with a streaming premiere on AppleTV+ on Nov. 22. The company also has “F1,” which stars Pitt, opening in theaters on June 25, 2025.
Check This Out:
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
