Apple Considers Theatrical Arm Amid $250M Bet on 'F1: The Movie'

[MacRumors]

Amid its push to promote "F1: The Movie," Apple is considering starting its own theatrical distribution unit, the Wall Street Journal reports.

Apple announced its foray into original video content in 2019 with the launch of Apple TV+, positioning the service as a curated platform for high-quality, original programming. Since then, the company has invested billions of dollars in films and series, drawing in top-tier talent including Leonardo DiCaprio, Robert De Niro, Martin Scorsese, and Cate Blanchett. However, the service has yet to produce a breakout theatrical success or significantly impact the broader streaming landscape in terms of subscriber volume.

Apple reportedly agreed to spend nearly $250 million on F1: The Movie, making it the company's most expensive film project to date. Brad Pitt, who plays the lead role as an aging Formula 1 driver returning to the sport, was apparently paid more than the $20 million baseline typically reserved for A-list actors and will receive a portion of the film's backend profits if the movie performs strongly.

The WSJ describes the success of the movie as a "a referendum on Apple's ability to meld carefully curated content with broad popular appeal after six years in which it hasn't released a single box-office hit." However, according to pre-release surveys, F1 has struggled to generate interest among audiences beyond older men.

Apple is not handling theatrical distribution of F1 directly. Instead, Warner Bros. Pictures is managing the film's global release under a revenue-sharing agreement. A person familiar with the deal said Warner's share of box-office revenue increases in proportion to total ticket sales. Apple has reportedly considered establishing its own theatrical distribution arm, but, for now, the company continues to rely on external partners for wide theatrical releases, which limits its ability to control exhibition timelines, advertising spends, and theater allocation.

F1: The Movie releases in U.S. theaters tomorrow, 27 June. It is expected to stream exclusively on Apple TV+ after its theatrical run.

Article Link: Apple Considers Theatrical Arm Amid $250M Bet on 'F1: The Movie'

 

[klasma]

They could open some iMax theaters.

 

[Mac Fly (film)]

They should start a "let apps from others make movies and tv, and get back to making good products" division. If only Apple had taken gaming more serious instead of this then Apple TV hardware (renamed) might be interesting. What's more, the biggest shortcoming with Macs could be addressed.

 

[Apple Knowledge Navigator]

Opening theatrical distribution? Haha, they need to focus on what’s in front of them first, like a HomePod that’s in limbo, CarPlay Ultra that no one wants, a Mac Pro that been left for dead again, AirPods Max, et al…

What are these guys smoking?

 

[trusso]

Brad Pitt, who plays the lead role as an aging Formula 1 driver returning to the sport...

However, according to pre-release surveys, F1 has struggled to generate interest among audiences beyond older men.

🤭

I'm in my thirties and squarely in the millennial cohort. I enjoy many Brad Pitt films. I simply have no interest in racing or racing films. But it totally tracks that my parents' generation wants to see themselves as the heroes in their own story, even as the world gives plenty of evidence to the contrary. The older generation is, ironically, stuck in adolescence.

 

[Mac Fly (film)]

Opening theatrical distribution? Haha, they need to focus on what’s in front of them first, like a HomePod that’s in limbo, CarPlay Ultra that no one wants, a Mac Pro that been left for dead again, AirPods Max, et al…

What are these guys smoking?

Respectfully disagree on CarPlay Ultra. Want.

 

[steve62388]

This won't be a breakout hit. The problem is the subject matter, just not enough people interested.

 

[DocMultimedia]

This movie better do well or Apple might start considering changes.

 

[sinoka56]

I guess more push notification ads on Apple Wallet to promote movies 😂

 

[StudioMacs]

I guess more push notification ads on Apple Wallet to promote movies 😂

Ironically, one of the changes in iOS 26 is a toggle to opt out of ads in the Wallet app.

 

[Johnstrass2]

They should start a "let apps from others make movies and tv, and get back to making good products" division. If only Apple had taken gaming more serious instead of this then Apple TV hardware (renamed) might be interesting. What's more, the biggest shortcoming with Macs could be addressed.

If they take the crazy amount of money they're spending on making films and dump more into engineering for the next generation Apple Vision Pro, then they won't need to get into the theatrical release business. Everybody would love watching movies on their" Apple Vision light".

I don't know why they just don't become part owner of a major film studio and just get dibs for first streaming release on Apple platforms...

20 years from now, Harvard business school will have Apple as a case report example about how not sticking to its core skills and core consumer needs leads to the end of a company...

 

[roklanhavok]

I felt Craig driving an F1 car on top of the Apple building was a little desperate. I guess they feel that if they just make enough people aware that the movie exists that it will work. We'll see if they're right

 

[SW3029]

Opening theatrical distribution? Haha, they need to focus on what’s in front of them first, like a HomePod that’s in limbo, CarPlay Ultra that no one wants, a Mac Pro that been left for dead again, AirPods Max, et al…

What are these guys smoking?

My dude, the hardware and software engineers at Apple aren't being pulled away to produce or distribute films. Apple is a massive company with multiple arms. They don't need to shut out options for additional business models because a HomePod hasn't been updated in a while.

 

[philstubbington]

I guess more push notification ads on Apple Wallet to promote movies 😂

First time I’ve seen a notification in the Apple TV on my iPhone.

 

[SW3029]

I guess they feel that if they just make enough people aware that the movie exists that it will work.

This is the core tenet of all marketing. You need to make a critical mass of people aware that a product exists. That's why marketing exists.

 

[CharlesShaw]

has struggled to generate interest among audiences beyond older men.

Yeah, older men would be happy with a movie about installing Network Attached Storage, so not a wide audience.

 

[iBug2]

Opening theatrical distribution? Haha, they need to focus on what’s in front of them first, like a HomePod that’s in limbo, CarPlay Ultra that no one wants, a Mac Pro that been left for dead again, AirPods Max, et al…

What are these guys smoking?

Probably the sum of all those products don't make as much money as one movie that goes to billion dollars in theaters.

 

[Middling]

F1 has struggled to generate interest among audiences beyond older men.

I don't know how Apple could have expected any other outcome.

$250 million is a rediculous amount to spend on this. Instead of throwing money at over-priced stars i wish they'd do something similar to Film4 and finance good quality lower budget films. They could have had 50 Indie films for the cost of this car racing flick.

 

[hondo77]

Apple hasn't even figured out filmmaking and they think they *might* be able to figure out film distribution? Remember when they grotesquely underestimated the amount of effort to compete with Google Maps? Film distribution is like that but shadier.

 

[sc00ba]

Wouldn't it be great if Apple could once again become the great computer company that produced the best hardware and software instead of producing sterilised movies & tv shows with diverse casts with scripts that subliminally pander to/lecture the viewer for the umpteenth time about racism & human rights etc.

I bet a lot of Apple's user base would like stable and functional software & a movie or tv show that took a "risk" once in a while, but I have a feeling we won't see it again thanks to the folks over in the DEI department at Apple which seem to have unlimited access to Apple's bank accounts.

 

[macbookj0e]

Respectfully disagree on CarPlay Ultra. Want.

I think he meant no manufacturers want it. End users probably do.

 

[Apple Knowledge Navigator]

Apple hasn't even figured out filmmaking and they think they *might* be able to figure out film distribution? Remember when they grotesquely underestimated the amount of effort to compete with Google Maps? Film distribution is like that but shadier.

This. They think they can just waltz into an industry and take a significant margin all because they make some hiring and know how to market.

 

[imDavid]

While doing an Fitness+ workout today, the instructor Kyle mentioned the movie mid workout.
Like c'mon, Apple. Enough.

 

[contacos]

I am too gay for this movie.

 

[Macaholic868]

However, according to pre-release surveys, F1 has struggled to generate interest among audiences beyond older men.

In other totally shocking news, water is wet. Do you care about Formula 1 racing? I don’t and neither does anybody I know. Do you care about seeing an aging Brad Pitt on screen? I don’t and neither does anybody I know. The last few flicks I’ve seen with him in it were average to sub-par at best and I have zero desire to rewatch any of them. World War Z was the last entertaining movie I can remember him being in. That’s was a long time ago at this point.

I know there are fans of both, so people will go and people will stream it, but will enough people go to the movies and stream it to justify the 250 million dollar budget in this day and age? I doubt it. If I see this at all it’ll be via Apple TV+ one day when I’m completely and totally bored.