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WHAT IS APPLE TV? LEARN ALL ABOUT IT!
Apple plans to invest more than $1 billion a year in film production for theatrical release in addition to its Apple TV+ streaming platform.
This would represent an increase of around 15% over Apple TV+’s current total production budget of around $6.5 billion per year. The main objective of this investment isn’t only to generate box office revenue, but also to strengthen Apple’s presence in Hollywood and increase its brand recognition in the film industry.
What is Apple TV?
Apple TV is a name used for two different products. The first is a physical content streaming device, which connects to the TV and has an HD version and a newer version called Apple TV 4K.
This device allows you to play all kinds of content through different apps, including iTunes Store purchases, YouTube, Vimeo, Netflix, and even content in iCloud.
On the other hand, there is also an Apple TV app that can be used on devices such as iPhones, iPad, and Apple TV itself. This app allows you to play content from different subscription services, such as Amazon Prime Video, ESPN, Hulu, and PlayStation TV, among others.
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Apple also plans to bring its Apple TV app to smart TVs from brands such as Samsung, Sony, LG, and Vizio and is expected to be available for macOS computers in the fall. In addition, there will also be apps for other devices such as Roku and Amazon Fire.
What is Apple TV+?
Apple TV+ is a streaming video subscription service with Apple’s content. Unlike its content streaming box, this service is independent and has its catalog of series, movies, and documentaries produced by the company.
Like other streaming platforms such as Netflix or Amazon Prime Video, Apple TV+ focuses on the production of original content. The company has established agreements with major producers, actors, directors, and other entertainment industry talent to produce its content.
A paradigm shift
Until now, Apple TV+ has been a platform focused on the premiere and direct distribution of its content, so it has been exceptional that some of its titles have been screened in movie theaters.
Apple TV+’s catalog has been mostly in-house productions, with only a few occasions including third-party titles, especially during the pandemic. For example, there are films such as CODA, which won the Oscar for Best Picture in 2022, and Greyhound, acquired from Sony. While CODA did have a limited theatrical release, Greyhound, which was intended for wide release, never made it to theaters.
According to the source, the primary goal of theatrical movie releases is to create greater brand awareness. This is a strategy that includes big names in the film industry, such as Martin Scorsese, Leonardo DiCaprio, or Matthew Vaughn, and could help attract more stars to the platform.
So far, most of Apple TV+’s budget for its original content has gone to series, some of them with high-profile stars, such as The Morning Show with Jennifer Aniston or Steve Carell. However, its biggest success so far has been the series Ted Lasso, which featured a more modest cast.
Movie premieres
Apple will face new challenges as it moves from releases on its online streaming service to theatrical releases around the world, and one of them will be increased movie promotion costs, which can reach $100 million in some cases. Unlike streaming platforms, which have much lower promotional expenses, Apple has promoted its service little compared to its competitors, such as Netflix, HBO, or Prime Video.
While the movie industry hasn’t yet fully recovered from the impact of the pandemic, having a new distributor like Apple could boost ticket sales in movie theaters. However, Apple has been fairly quiet in the online streaming business for the three-plus years it has had TV+.
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In its strongest market, the U.S., its market share barely reached 6% a few months ago, while Netflix or HBO had nearly four times that. If this move helps boost its market presence, it will have accomplished its goal of creating greater brand awareness in the industry and attracting more stars to its projects
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