- Apple Inc (NASDAQ:AAPL) eyes splurging $1 billion annually to produce movies likely for theatrical release to draw subscribers to its streaming service.
- Apple has approached movie studios about partnering to release a few titles in theaters this year and a slate of more films in the future, Bloomberg reports.
- The list of potential releases includes Martin Scorsese's Killers of the Flower Moon, which stars Leonardo DiCaprio; the spy thriller Argylle, from director Matthew Vaughn, and Napoleon, Ridley Scott's drama about the French conqueror.
- Also Read: Netflixverse? Netflix Shows Interest In Building Franchise, Spends Extravagantly On Avenger Famed Directors For Latest Sci-Fi Project
- The company has pledged to put movies in thousands of theaters for at least a month, in stark contrast to the exclusivity of its previous original film.
- Apple TV+ will likely have 20 million - 40 million subscribers, fewer than rivals such as Netflix Inc (NASDAQ:NFLX) and Walt Disney Co (NYSE:DIS) Disney+.
- Apple approached third-party distributors to manage the theatrical release, which entails substantial distribution fees and marketing budgets.
- Paramount Global (NASDAQ:PARA) Paramount Pictures will release the Scorsese movie in theaters because the project originated at that studio and will collect a 10% distribution fee.
- Tech giants Apple and Amazon.com Inc (NASDAQ:AMZN) are boosting their investment in entertainment while cutting costs elsewhere.
- Apple's plans will boost theater chains struggling to recover from the pandemic. The chains have repeatedly blamed studios' shortage of available films for their woes.
- Contrastingly, the highest content spender Netflix wants its movies to appear in theaters and online simultaneously or within a couple of weeks.
- Price Action: AAPL shares traded higher by 0.98% at $159.37 premarket on the last check Thursday.
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