F1 Box Office Win Fuels Apple Studios’ Cinematic Future

Given the huge response the F1 movie received, earning $146.3 million in its first weekend since its global release on 25 June, it marks Apple Studios’ first theatrical success, paving the way for a bright future for the studio, even though the movie is yet to break even on its reported $250 million budget.

After delivering several flops since its inception in 2019, such as Napoleon and Killers of the Flower Moon, the future of Apple’s foray into movies remained doubtful. Now, F1, starring Brad Pitt, may have given Apple Studios enough momentum to choose among four possible directions for its future, according to a report by Variety.

The first option could be a full-fledged movie production route, where Apple releases multiple projects in a year through a full-scale distribution model. However, this process is very expensive and complicated, but it could offer a major hold over marketing its products, especially Apple TV.

The second option could be to only pick selected movie projects and work with high-profile celebrities and partners for theatrical releases. However, the incentives for distributors would suffer in case the movies don’t perform. But if the movies do well, they would only add to the goodwill and promote other select projects, pushing Apple to prioritize quality over quantity.

The third approach Apple Studios could adopt is to produce docuseries, a model similar to Netflix. This could help Apple offer consistent content to its users and streaming exclusivity. In addition, this model would help minimize costs and attract talent from a larger pool. However, following this approach could prevent Apple from working with high-profile celebrities and filmmakers, given the potentially smaller scale of projects.

Lastly, Apple could also purchase an existing Hollywood studio or entertainment library with its $30 billion cash reserves and continue to run it with its existing resources. This could lead to the generation of new, instant ideas, access to intellectual property, and a fully functioning revenue-generating model. However, this route seems unlikely for Apple, considering the institutional challenges that come with such studios and the efforts required to make necessary modifications.

Many believed that Apple would exit the movie business if F1 failed to meet expectations. But with the success it witnessed with the motorsport-based project, and with ongoing projects in the pipeline, such as Mayday – an action-adventure movie featuring Ryan Reynolds, and a UFO feature from the makers of F1– producer Jerry Bruckheimer and director Joseph Kosinski, it is only a matter of time before Apple chooses a direction to grow into.