The cinema success of car-racing yarn “F1: The Movie” propels Apple TV+’s original film ambitions that have been an enigma since the late Steve Jobs ran the tech giant.
In 2007, journalists demanded to know why the company didn’t drop its then-foundering Apple TV hardware product suite, to which Jobs answered, “For us, Apple TV is just a hobby.” That flip reply drew chuckles and defused journalists nagging.
Now, after a string of so-so or disappointing original movies, “F1” is a hit in cinemas and will certainly lift Apple TV+ when it lands on the steamer in a few months. The PG-13-rated drama about Formula 1 racing premiered in domestic cinemas June 27-29, posting $51 million for its opening weekend (distributed by Warner Bros. Pictures). After 10 days in theaters, boxoffice is a solid $109 million domestically and $298 million worldwide.
The film starring Brad Pitt, who portrays an over-the-hill racer who invigorates a failing Formula 1 team, cost between $200 million-$250 million to make (not clear how much subsidies and support from its many promotional partners reduced actual spend).
Today, Apple TV+ is a video streaming service in a high-cost arena facing larger Netflix, Disney+ and others. Apple’s philosophy toward video streaming content is clearly to embrace upmarket fare, which fits its brand image built around elegant digital devices. So, no “Gong Show,” low-brow reality TV or other unsophisticated fare, even if that would be profitable and enlarge the Apple TV+ streaming footprint.
The expectation is Apple will broaden its film scope, given “F1” is upmarket but also undeniably a crowd pleaser. Earlier movies were more high-brow, but commercial disappointments. “Six years into the tech giant’s foray into the movie business, the company has fielded underperforming auteur-driven fare (Martin Scorsese’s pricey ‘Killers of the Flower Moon,’ Ridley Scott’s equally expensive ‘Napoleon’) and critically derided flops (‘Fly Me to the Moon’ and ‘Argylle’),” writes Rebecca Rubin in Variety. These are comparable to major-Hollywood-studio tentpole films that cost $200 million to make.
“But nothing that’s been remotely commercial,” Variety continues. “Apple seemed to be rethinking its film strategy after deciding to curtail the theatrical release of 2024’s ‘Wolfs,’ a tepidly reviewed crime drama with Pitt and George Clooney.” In a change of distribution plan, “Wolfs” went direct to streaming, skipping a meaningful theatrical run.
The Variety story says Apple’s film ambitions could turn any one of a handful of directions, including going large by buying an existing film company, or building in-house studio capability, or remaining opportunistic without a big studio-like overhead.
“Theater owners want to see more from Apple at a time when they’re often struggling with a lack of compelling material, especially for grown-ups,” writes Ryan Faughnder in the Los Angeles Times. “With ‘F1,’ they saw a glimpse of hope. … Ask anyone in Hollywood why, exactly, Apple is in the movie business at all and you’ll get varied answers.” Apple declined to comment.
Whatever Apple wants to do, money is no obstacle. The Cupertino, Calif.-based technology behemoth posts annual revenue of $391 billion, has $62 billion in cash in its coffers, relatively low corporate debt and an astonishing stock market capitalization of $3 trillion (value of its common stock). In comparison, consider that Paramount Communications (owner of CBS Television and Paramount Pictures) has a pending distressed sale at just $8 billion.
The film leader among tech companies is Amazon, whose Amazon Studios include the acquired Hollywood-legacy-studio MGM (with its United Artists film library) and a beefy slate of originals.
For video streamers, original TV series are king because their episodic format keeps subscribers tuned in. But in second position, one-shot films have a significant value too, to plug gaps in release schedules and bask in the glow of theatrical awards. Prestige is meaningful to streamers because it coaxes adult subscribers to renew their monthly bill.
Where are Apple’s film ambitions going? A line cited several times in the “F1” movie about car racing may apply: “drive fast.”
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