Apple’s weighing major shift to prove it’s serious about theatrical movies

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Apple’s biggest theatrical gamble ever, the $250 million F1 The Movie, arrives in US theaters tonight. On the heels of its release, a new report reveals that the company is weighing a big move that would prove it’s serious about theatrical.

Apple might start its own theatrical distribution unit, per WSJ

Ben Fritz and Joe Flint write at The Wall Street Journal:

Apple hasn’t invested in the capacity to release and advertise its own movies, as Amazon did when it acquired MGM. Warner Bros. is distributing “F1” for Apple and gets a percentage of box-office revenue that increases with ticket sales, according to a person familiar with the arrangement.

That approach saves Apple on overhead costs, but puts it at the mercy of partners that may prioritize their own productions. Warner Bros. is releasing “Superman,” its most important movie of the year, two weeks after “F1.”

A Warner spokeswoman said it is giving “F1” a “robust global marketing campaign that befits a film of its size.”

Apple executives have discussed starting their own theatrical distribution unit, people familiar with the matter said.

That last sentence is thrown in with little additional comment at the article’s conclusion. But it would actually be very big news if Apple follows through on the move.

Apple’s history with theatrical efforts has been all over the place.

In the early days of Apple TV+, Apple focused on indie, Oscar bait-type films and found success with that approach. CODA was the first movie from a streamer to win the Oscar for Best Picture.

With these films, Apple would only provide a limited theatrical release for awards eligibility.

Then the company shifted gears and started releasing big-budget, wide theatrical efforts. Think Killers of the Flower Moon, Napoleon, and Argylle.

This approach was less fruitful. After several disappointing releases in a row, Apple canceled the wide theatrical plan for Wolfs last minute, and stacked its movie release slate with straight-to-TV+ films.

F1 The Movie is the one big exception.

Because of Apple’s complicated history with movie theaters, Hollywood is understandably wary.

This is no doubt why Eddy Cue made a point to tell Bloomberg, “This concept that theaters are going away, it’s not true…Theatrical experiences are great, and I’m a huge fan.”

If Apple opened its own theatrical distribution unit though, it would signal in a big way that movie theaters are part of the company’s content plans for the long haul.

Do you think Apple should commit more strongly to theatrical, or continue pulling back? Let us know in the comments.

Apple TV+ is available for $9.99 per month and features hit TV shows and movies like Ted Lasso, Severance, The Morning Show, Silo, and Shrinking.