Earlier this year, we were able to break the news that Apple is making a big push into theatrical releases for their product. What does seem a little less clear, however, is why they’re jumping between distributors to such an extent. With the third partner for the third Apple release now unveiled, Brandon Blake, Blake & Wang P.A’s expert entertainment lawyer, unpacks the news for us.
The Year of Apple’s Theatrical Releases
As we all know, this is the year we’re seeing a massive push from Apple to further its streaming ambitions via splashy theatrical releases. It’s a partnership that works well to boost both bottom lines, so there’s no surprise they’ve finally decided to step out of their ‘tech giant’ box and make a dedicated and future-forward push for real acclaim for their streaming platform. And with a lofty $1B a year now dedicated to the cause of bringing Apple films to life on the silver screen, it’s a juicy deal. Previously, most Apple releases either had very limited theatrical releases on the speciality circuit, or they went directly to streaming. Under the new scheme, they have dedicated themselves to releases spanning thousands of theaters, and a theatrical run of at least a month for each.
It should do a lot to boost not only their bottom line, but also general awareness of their streaming service. While Apple TV+ has done well, even managing to produce a few award-winning shows and nominated movies, they currently only boast somewhere between 20M to 40M subscribers. It’s difficult to be more precise- like all the tech-companies-turned-streamer, Apple plays its data very close to its chest- but what is clear is
that it’s still lagging behind services like Disney+ and Netflix despite those accolades. THis could be exactly what’s needed to give it a boost.
The Bouncing Distribution Question
What is strange, however, is that they have yet to commit to a distribution partner for this endeavor. In fact, it’s hard not to see the constant switches as something of a ‘trial run’ before picking a favorite. With the much-anticipated Killers of the Flower Moon, in partnership with Martin Scorcase, going to Paramount Pictures, and Ridley Scott’s Napoleon now distributed by Sony, few expected another change. Yet Argylle will be distributed through Universal. Again, we don’t know if the partnership will be for one movie, or if this time it will stick.
What’s especially unusual is that Apple certainly has the funds to outright buy a studio- something like what we have already seen from Amazon with the $8.5B MGM deal in March 2022. Additionally, Universal’s own distribution policy (movies below a specific box office cap head to streaming in as little as 3 weekends or 17 days) doesn’t seem a good match to their stated goal of keeping movies in theaters for a month, at least for this film. Universal has offered no statement on the matter, either.
All the same, it’s a three-for-three now for Apple’s theatrical ambitions. Whether this is simply trying to find the right theatrical distribution partner, or part of a larger scheme, will have to remain to be seen.
