Apple’s Plan to Spend $1 Billion a Year to Release Films Into Cinemas Boost Movie Theater Stocks

Apple’s Plan to Spend $1 Billion a Year to Release Films Into Cinemas Boost Movie Theater Stocks

Apple is aiming to invest $1 billion a year to release its upcoming original films in cinemas. The production company plans on distributing between 12-15 movies on the big screen per year, Bloomberg is reporting. The news comes after Amazon announced a similar plan in November, stating that it will release between 12 and 15 films in theaters each year.

Apple’s plan is aimed to help make the brand more present across Hollywood. The company also wants to introduce new users to its streaming service, Apple TV+, which will serve as the final destination for the movies Apple premieres in theaters.

As a result of the announcement, movie theater stocks received a quick boost. AMC’s stocks rose 4%, IMAX saw a 5% increase and Cinemark got the biggest boost of all, jumping 10%.

Apple’s upcoming films are expected to bring a large large number of viewers to theaters, due in part to their on screen talent. Its previous original movies and television series have featured such popular actors as Jennifer Aniston, Denzel Washington, Jason Momoa and Timothée Chalamet.

Apple’s films are expected to have a theatrical run of at least a month. Such a lengthy theatrical run suggests that filmmakers’ work will have the potential to reach bigger audiences and create a larger impact on not only the movie industry, but also their careers. As a result, film industry professionals are expected to be eager to work with Apple.

The company’s upcoming projects are already promising to become huge box office draws. Martin Scorsese is working on his crime thriller Killers of the Flower Moon with Leonardo DiCaprio in the lead role. Ridley Scott, meanwhile, is crafting the historical epic Napoleon, which will star Joaquin Phoenix.

Apple has debuted several of its previous titles on the big screen in recent years, including the Oscar-nominated The Tragedy of Macbeth and the Academy Award-winning CODA. Last year, Apple TV+ became the first streaming service to win the Oscar for best picture, with CODA.

The company previously favored a limited theatrical run with its projects, including The Tragedy of Macbeth and CODA. Now, however, Apple wants to make a name for itself and start competing head-to-head with other big studios.

In the wake of the COVID-19 pandemic, distributors shortened the window in which movies can start streaming after their theatrical release from 90 days to 45 days. Some studios also have deals with cinema chains that allow for shorter runs based on ticket sales.

2023 is expected to be a stronger year at the domestic box office, as production levels returned to normal in 2022. Word of Apple’s additional film commitments gives the industry another confidence boost.

The billion-dollar bill attached to the plan also suggests that Apple will be handling big marketing campaigns for its own movies. The campaigns take up a large portion of a film’s post-production budget, as they involve creating trailers,and sending stars to different locations to promote the movie. But Apple hopes that its billion-dollar theatrical release plan will garner more attention for its upcoming films.

Check out more of Karen Benardello’s articles.

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