Apple is set to drop a huge ticket to visit Netflix and Prime Video.
Published on 03/24/2023 at 17:05
The battle over SVOD platforms is on the rise, and if Netflix and Prime Video dominate in masters, the current situation leaves little options for the competition. However, Apple appears to have an idea and intends to invest massively in cinema.
On the side of SVOD, Apple's giant wants to regain the beast's hair.
Apple is the world's largest market capitalization. And if it's mostly known for its smartphones, its tablets, and its computers, it has for a few years expanded its offering by releasing two services: Apple Music in 2015, and Apple TV+ in 2019. But even if Apple's SVOD platform fails to stand out from Netflix and the company, it does not mean that it will give up.
Apple intends to go further than the others in generating $1 billion a year in theatrical productions, and not just on its platform, according to the American media Bloomberg. This represents an annual increase of about 15% compared to the budget it has had for Apple TV+ projects so far.
What does Apple's investment represent?
The purpose of this investment is not only to strengthen Apple's annual balance sheet, but also to strengthen the company's reputation in the film industry. A recognition that would also enable the American giant to attract more actors to its productions. The series recovers the greatest part of the cake.
Unsplash's photo credit:
Aside from that, Apple will have to bear the cost of advertising the film when it transitions from OTT (streaming television) releases to cinemas around the world, which can sometimes amount to several hundred million dollars. Usually, in the OTT space, these numbers are much lower; and in the case of Apple, which has promoted its service little compared to Netflix, HBO, or Prime Video, these same numbers are even lower.
Apple intends to exploit the fact that cinemas have not yet recovered from the effects of the pandemic, to establish itself as a new distributor and thus increase ticket sales. And as a result, Tim Cook and his teams would have won everything.