Apple’s ambitious plans to first do a wide release of its films before streaming them on its Apple TV+ streaming service has apparently proven too ambitious, as the Cupertino company is changing its mind about the process. The move comes after experiencing box office disappointment on some of its high-profile releases, Bloomberg reports.
Apple reportedly planned at the beginning to spend $1 billion annual on big-budget movies that were intended to play in theaters to compete with traditional movie studios, The company was hoping to drive ticket sales with blockbuster films that would perform well at the box office while also scoring with critics. Unfortunately for Apple, that plan has been less than successful.
The company financed several high-profile films, including Martin Scorsese’s Killers of the Flower Moon, Ridley Scott’s Napoleon, and Matthew Vaughn’s Argylle. Unfortunately, the box office for all three of the movie were disappointing, leading Apple to scale back on their initial plans. The company now plans to opt for limited releases in theaters, then streaming them exclusively on Apple TV+.
One of the first movies to follow this new plan, the George Clooney and Brad Pitt action buddy comedy Wolfs, premiered on Apple TV+ last week. The movie ran for a short period of time in a limited number of theaters before moving over to the streaming service. Even though the film received mostly positive reactions from reviewers, the company reportedly decided against a wide theatrical release for the fil, due to the less than profitable movies mentioned above.
While Apple remains committed to spending on content for its service, it is working to control costs in its entertainment division. New plans involve scaling back on big theatrical releases and holding tightly on the reins of the budgets for its films, keeping budgets for most films to under $100 million each.
Apple will still release blockbusters from time to time. It’s next big flick will be the Brad Pitt-helmed F1, which is set for a June 2025 release. The film is said to be Apple most expensive film to date, with a production budget of over $300 million.
Apple is going ahead with its plans to construct a 536,000-square-foot facility that will serve as headquarters for 3,000+ employees by 2026 in Culver City, California. However, writers, producers, and actors can expect tighter budgets than they may have expected.