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

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

Apple TV F1
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.

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Top Rated Comments

Apple Knowledge Navigator Avatar
15 weeks ago
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?
Score: 34 Votes (Like | Disagree)
klasma Avatar
15 weeks ago
They could open some iMax theaters.
Score: 25 Votes (Like | Disagree)
steve62388 Avatar
15 weeks ago
This won't be a breakout hit. The problem is the subject matter, just not enough people interested.
Score: 21 Votes (Like | Disagree)
Mac Fly (film) Avatar
15 weeks ago
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.
Score: 19 Votes (Like | Disagree)
sinoka56 Avatar
15 weeks ago
I guess more push notification ads on Apple Wallet to promote movies ?
Score: 14 Votes (Like | Disagree)
SW3029 Avatar
15 weeks ago

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.
Score: 13 Votes (Like | Disagree)