Apple Scales Back Theatrical Releases, Focuses on Streaming

• Apple is turning to a streaming-first strategy for movie releases, reducing global theatre aspirations.
• The corporation wants to cut production expenses by focusing on films with budgets under $100 million.
• Apple will continue to spend $1 billion per year on films, but with fewer wide theatrical releases, matching with industry trends towards streaming.

According to reports, Apple has changed its movie release strategy, prioritising its streaming platform, Apple TV+, above large-scale theatrical releases. This decision follows the dismal box office performance of several high-budget films, causing the tech behemoth to reassess its film distribution strategy.

A New Focus on Streaming

In a key illustration of this transition, Apple just launched the star-studded picture Wolfs, starring George Clooney and Brad Pitt, directly to Apple TV+. Originally intended for a global theatrical release, the film had a limited run in select theatres before becoming available for streaming. This represents a significant shift in Apple’s distribution strategy, as the corporation had previously pushed for a larger theatrical presence.

According to sources, Apple will stick with its streaming-first strategy for several upcoming titles. However, by June 2025, the corporation may return to a more traditional approach with a few global launches.

Cost-Cutting Measures

Apple’s shift in strategy coincides with efforts to reduce production costs. The business has spent between $100 million and $200 million on recent hits like Killers of the Flower Moon, Napoleon, Argylle, and Fly Me to the Moon. In the future, Apple intends to make the majority of its films on a more conservative budget, aiming to keep expenses around $100 million for each project.

Despite these adjustments, Apple remains committed to investing approximately $1 billion per year in its film division. However, it will now limit the number of wide theatrical releases to one or two per year. Most films will be released on its streaming service, a strategy geared at increasing the popularity of Apple TV+ while keeping a presence in the cinema.

Aligning with Industry Trends

Apple isn’t the only corporation rethinking its film distribution approach. Streaming rivals such as Netflix and Amazon are also making changes. Netflix, for example, is aiming to reduce costs by making more films in-house and releasing fewer titles overall. Amazon has also reduced its movie production plans, reinforcing a broader industry trend in which streaming platforms prioritise financial control and rethink distribution strategy.

Streaming Dominance

The shift to streaming as the principal release channel mirrors broader trends in consumer behaviour. According to recent studies, video streaming remains the most popular internet activity in the vast majority of countries assessed. Streaming was the most popular online activity in seven of the 11 countries analysed, with the remaining four coming in second. This increased propensity for streaming explains why Apple and other entertainment titans are emphasising delivering content directly to audiences via their digital platforms.

A New Era for Apple TV+

Apple’s new strategy demonstrates its sustained commitment to its streaming service. By making fewer high-budget films and focussing on streaming-first releases, the firm is aligning with the changing environment of digital entertainment. For moviegoers, this means more movies available to stream on Apple TV+, whilst for Apple, it signifies a more sustainable approach to film development and distribution.

With financial prudence and consumer trends in mind, Apple is preparing to prosper in a competitive, rapidly changing digital entertainment landscape. As the streaming market continues to dominate, this move could be a wise decision to ensure Apple TV+’s long-term viability in a congested market.