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 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.