Since its launch in 2019, Apple TV+ has had a notable impact on the film industry, producing movies that have not only been critically acclaimed but have also set milestones, such as CODA, the first film from a streaming platform to win the Oscar for Best Picture. In recent years, Apple has increased the budget for the movies it produces, and the response to this move has led the company to rethink its strategy for Apple TV+.
Movies like Killers of the Flower Moon, Napoleon, and Argylle were among the most recent high-budget productions, with theatrical releases and certain expectations for their box office performance. They did not, however, recoup their production costs, which apparently has led Apple to reevaluate how to allocate its film budget and what approach to take in the future.
The new strategy: more streaming, less box office
According to Bloomberg, Apple has decided to modify its approach regarding the movies it will produce. The company plans to maintain its annual investment of one billion dollars in film production, but with a significant change in the composition of its release portfolio.
The goal will be to produce around a dozen movies a year, most of them with budgets under 100 million dollars. With this, the company will focus more on content directed straight to the streaming service, rather than betting on major theatrical releases.
According to Bloomberg, Apple will not completely abandon the release of some movies in theaters, but these releases will become the exception rather than the norm. The company is expected to make only one or two major box office bets per year, with high budgets and hopes of capturing the audience’s attention in theaters. The F1 movie, starring Brad Pitt, will be a clear example of this type of release.
A movement similar to Netflix?
Apple’s strategic shift reminds us of the approach Netflix has long taken. Instead of allocating large sums to theatrical releases, Netflix has prioritized its streaming platform, offering original movies directly to subscribers and limiting theatrical releases to special cases or titles with potential to win awards.
Apple’s new strategy, if we pay attention to the leaks, involves adapting to a cinematic landscape that continues to evolve with changes in consumption habits. While the experience of going to the cinema is still valued by many, the reality is that most people now prefer immediate access to new movies from the comfort of their homes.
For Apple, focusing on lower-budget films for Apple TV+ is a way to continue producing engaging and diverse content without taking on the financial risks associated with major theatrical releases. At the same time, by reserving a couple of big annual productions for theaters, Apple continues to maintain its relevance in the traditional film industry, its good relationship with Hollywood, and the options to present certain productions for awards they may deserve.
