Apple’s Film Commitment Will Be Over $1B; Question Is, Should It Distribute & Market A Theatrical Slate, Or License Out?

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The media news cycle is in a frenzy today over a Bloomberg piece that Apple will shell out a $1 billion to produce big screen features annually. That’s great news for exhibition, yes. But, in…

, is now closer to $200M. So these five films alone already cost $800M. And features this size demand at least $100M global P&A spends apiece.Still unclear: whether or not deals would need to be renegotiated if the pics go theatrical. Streamers typically buy out talent’s backend upfront. With talent and filmmakers this big, it only makes sense to give them a wide big screen push.

If Apple is going full-on theatrical, why not build its own internal marketing and theatrical divisions? Especially if it’s going to commit billions and money is no object. That way, says one distribution insider, “They can control their own fate” and wouldn’t have to negotiate with a distribution partner over release dates, or haggle over distribution fees.Manchester by the Sea

Apple doesn’t break out its streaming TV subscribers, which are part of the services division including music and other platforms that all contribute to driving the massive Apple ecosystem. It has fewer subs than streaming leaders Netflix and Disney. Natch, the thinking is that a movie’s big screen splash is a bigger advertisement for the streaming service itself in its quest to spike subs.

Major studios from Warner Bros. to Disney are also pushing theatrical now more than they have since Covid and streaming.

 

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