Apple Inc (NASDAQ:AAPL) is reviewing its movie strategy, part of a turnaround strategy by its Hollywood studio leaders, Zack Van Amburg and Jamie Erlicht, to contain costs.
Apple plans to produce a dozen movies annually, most of which will cost less than $100 million, Bloomberg cites familiar sources.
Reportedly, Apple spent $700 million on the three blockbuster movies Killers of the Flower Moon, Napoleon, and Argylle, which grossed $470.4 million globally.
Also Read: Movie Theater Analyst Sizes Up AMC, Cinemark And More, Predicts ‘Box Office Rebound In 2025’
Apple’s George Clooney and Brad Pitt-starring action comedy Wolfs began streaming on Apple TV+ after debuting in limited venues. Apple is considering a similar strategy for subsequent releases, including the World War II drama Blitz.
However, the streaming business emerged as a battleground led by Netflix Inc (NASDAQ:NFLX), with Walt Disney Co (NYSE:DIS) and Amazon.Com Inc (NASDAQ:AMZN) fighting for market share.
Netflix had a market share of 22% in subscription video-on-demand (SVOD) services in the second quarter of 2024. Walt Disney Co (NYSE:DIS) streaming service Disney+ followed with a market share of 11% and Apple TV+ at 9%, as per Statista.
Netflix spends $17 billion annually on content and eyes over $600 billion in revenue opportunity.
Disney scored a big win in 2024 with proven franchises Deadpool & Wolverine, grossing $1.32 billion, and Inside Out 2 clocking $1.69 billion globally, according to Box Office Mojo.
Comcast Corp’s (NASDAQ:CMCSA) Despicable Me 4, another proven franchise, grossed $0.95 billion. Apple’s next theatrical release, F1, starring Pitt, is slated for June.
Price Action: AAPL stock is up 0.18% at $227.94 at the last check on Friday.
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This article Apple’s Reviews Strategy, Cuts Film Budgets After Blockbuster Spend – What’s Next for Apple TV+? originally appeared on Benzinga.com
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