Apple reportedly plans to invest $1 billion a year in theatrical film production

Apple Inc plans to invest $1 billion a year in producing theatrical films, people familiar with the matter said today, as part of a plan to raise its profile in Hollywood and attract subscribers to its streaming service.

Apple has approached movie studios about releasing several theatrical films this year, and will release more theatrical films in the future, the people said.

Possible releases include Martin Scorsese's "Killers of the Flower Moon" starring Leonardo DiCaprio, Matthew Vaughn's spy thriller "Argyle" and Ridley Scott's drama about French conqueror Napoleon, the people said.

Apple declined to comment.

The investment is a significant increase compared to the past few years. For most of Apple's previous original movies, they were either released exclusively on streaming services or released in a limited number of theaters. Now Apple plans to release these movies in thousands of theaters for at least a month, people familiar with the matter said today. Of course, the plan has not yet been finalized.

While Apple's decision to release the film in theaters is intended to gain a competitive advantage in its "entry into Hollywood," Apple also sees theaters as a way to build awareness for its "TV+ streaming service." It is estimated that Apple TV+ currently has 20 million to 40 million subscribers, fewer than competitors such as Netflix and Disney+.

At present, Apple has not yet determined how to release these movies in theaters. So far, Apple does not have the experience and expertise to release movies in thousands of theaters around the world at the same time, which is why Apple has begun to contact third-party distributors.

First, Apple needs to reach an agreement with potential partners on distribution fees and marketing budgets. Movie studios' marketing expenses can generally exceed $100 million, which is much higher than the investment of streaming media.

Like most other streaming services, Apple's Apple TV+ spends more of its budget on TV shows. But Apple has been financing movies since the establishment of its Hollywood studio. In 2021, Apple TV+'s "CODA" won the Best Picture Award at the 94th Academy Awards, becoming the first film from a streaming service to win the award in history. Since then, Apple's ambitions in the film field have been growing.

Analysts say Apple's plan could help boost box office revenue for struggling theater chains, which are currently earning only about one-third of their 2019 revenue due to the pandemic.

In addition to Apple, last year it was reported that Amazon also plans to produce 12 to 15 theatrically released films each year. In addition, Paramount, Walt Disney and Warner Bros. Discovery are also looking to increase their theatrical film production.