Apple reportedly shifts to streaming-first movie model with blockbuster exceptions

According to a new report, Apple is adopting a new movie strategy that somewhat mirrors Netflix's approach, prioritizing streaming releases over theatrical ones. The company aims to produce about twelve films annually, with budgets mostly under $100 million, marking a significant shift from its recent foray into big-budget productions. This change comes after some of Apple's recent high-profile movies, such as "Killers of the Flower Moon" and "Napoleon," failed to meet box office expectations despite their star-studded casts and substantial budgets.

The new strategy involves allocating most of its film budget to producing lower-cost films directly for its streaming service, Apple TV+. This aligns with the growing trend among streaming platforms to focus on exclusive content to attract and retain subscribers. However, Apple plans to maintain its commitment of spending $1 billion annually on films. While most new releases will be streaming exclusives, the company will still aim for a couple of major theatrical releases each year.

These theatrical releases, such as the upcoming Formula One racing drama, "F1," will likely be exceptions to the rule, accompanied by larger budgets and wider marketing campaigns. They will likely have limited runs, primarily serving to fulfill award eligibility requirements and comply with Hollywood's traditional expectations. This strategy aligns with Apple's recent handling of the film "Wolfs," which received a one-week limited theatrical release before its Apple TV+ debut.

This Netflix-inspired approach could have several implications for Apple and the film industry. For Apple, it may lead to a more sustainable film production model, allowing them to create a wider variety of content while minimizing financial risks. It could also bolster the appeal of Apple TV+, attracting more subscribers with exclusive film releases.