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Rumor: Apple may be setting aside $1 billion annual budget for movie creation, looking to tie into theatrical releases

Apple is apparently looking to jump into the movie business, and may be setting aside a $1 billion annual budget to do so.

Following up on Apple TV+’s becoming the first streaming service to win the prestigious Oscars Best Picture award in 2022, for Sundance acquisition CODA, Apple may be looking to upgrade its film slate.

According to Bloomberg, Apple may be significantly expanding its original films division to focus on blockbuster titles that will debut widely in theatres first, before arriving on the streaming service. Apple will purportedly spend $1 billion annually on its movie slate.

Until now, Apple Original Films releases have seen small theatrical runs which were mostly just enough to qualify for awards eligibility. The company is now said to be in talks to release films in thousands of theaters at least a month ahead of their streaming date. A large theatrical release will help build buzz for a title, helping to promote the Apple TV+ service in the process.

Apple might also be looking to secure top talent, such as an as-yet-untitled upcoming original film starring George Clooney and Brad Pitt. The stars reportedly chose Apple over distributors like Netflix, because Apple pledged theatrical distribution.

The plans could rival those of Amazon, which has announced plans to spend $1 billion per year on theatrical movies.

Apple is also said to be looking to partner with established movie studios to hand international theatrical distribution, rather than doing it all internally as it lacks the expertise internally. It has not yet finalized agreements such as the size of marketing budgets and distribution commission for the partner studio.

One Apple TV+ title that will get significant theatrical distribution through Paramount is the upcoming Martin Scorsese-directed feature ‘Killers of the Flower Moon’, starring Leonardo DiCaprio.

Apple has forked out around $200m to pay for the highly-anticipated production, with the film likely premiering at Cannes film festival in May, followed by a wide cinema release for a few months before arriving on Apple TV+ streaming service.

Stay tuned for additional details as they become available.

Via 9to5Mac and Bloomberg