Apple Inc., the world’s most valuable company, is reportedly considering a billion-dollar investment into movie theaters and sports streaming. The company is aiming to drive subscriber growth for its Apple TV+ streaming platform, which lags behind its rivals Netflix and Amazon Prime Video in terms of subscribers.
The plans would see Apple invest $1 billion annually in the production of movies for theatrical release. The company is currently in talks with movie studios to partner on the releases of upcoming films by renowned directors such as Martin Scorsese and Ridley Scott. Additionally, the company is reportedly considering bidding on the streaming rights to English football games.
The increase in entertainment spending marks a significant shift for Apple and may be part of an effort to increase interest in Apple TV+. While the streaming platform has an estimated 40 million subscribers, Netflix and Amazon Prime Video each have at least 200 million subscribers.
Apple also lags behind its rivals in content spending, having spent around $6.5 billion on movies and television in 2021, compared to Amazon and Netflix who spent $9 billion and $17 billion respectively.
Apple’s greatest success in streaming so far has been in television, with the critically acclaimed series Ted Lasso. However, the business of releasing movies for wide theatrical distribution may be more complex, particularly given the current struggles of theater chains to recover from the impact of COVID-19 and compete against streaming services. Movie ticket sales are currently around a third below 2019 levels, with some theater chains citing a shortage of available films as a reason for sluggish sales.
However, Apple’s distribution agreements with theaters could help boost ticket sales. The tech company is not alone in its interest in theaters, with Amazon having acquired major studio Metro-Goldwyn-Mayer for $8.5 billion last year and planning to make up to 15 movies for theatrical release each year. Both Apple and Amazon may aim to drive streaming viewership by later releasing these films on their respective platforms.
In addition to movie theaters, Apple is also reportedly interested in acquiring the streaming rights to English football games, following last year’s $2.5 billion 10-year streaming deal with the US Major League Soccer. However, the terms of any potential deal between Apple and the UK’s Premier League have not been disclosed.
Overall, Apple’s move into movie theaters and sports streaming marks a significant investment into the entertainment industry and shows the company’s ambition to compete against its rivals in the streaming market. Whether the move will pay off remains to be seen, but with Apple’s track record of success in other areas, it is clear that the company is not afraid to take risks in pursuit of growth and success.
- Apple’s interest in producing movies for theatrical release is a departure from its previous strategy, which focused on creating content exclusively for its streaming platform.
- The company is reportedly in talks with major movie studios, including MGM, to partner on the release of upcoming films.
- Apple’s investment in sports streaming, including its recent deal with the US Major League Soccer, is part of a broader push to expand its content offerings beyond movies and TV shows.
- While Apple TV+ has received critical acclaim for its original programming, such as Ted Lasso and The Morning Show, it has struggled to attract a large subscriber base due to the high number of competing streaming services.
- Apple’s entry into the movie theater industry could provide a much-needed boost to struggling theater chains, which have suffered from decreased attendance due to the pandemic.
- However, the shift towards streaming has also had a major impact on the movie industry, with many studios opting to release films on streaming platforms rather than in theaters.
- Apple’s move into sports streaming follows a trend among tech companies, including Amazon and Facebook, which have also invested heavily in sports broadcasting rights in recent years.
- Apple’s investment in entertainment is part of a broader effort to diversify its revenue streams beyond its core products, such as iPhones and Macs.