Many in the entertainment business have questioned the wisdom of the huge spends on Apple TV+ blockbuster movies, suggesting that the company is prioritizing vanity over commercial sense.
But a new report suggests that the three latest ones have proven profitable for the Cupertino company, despite low box office takings …
On the surface, it appeared that Apple had taken a hit of more than $150M box office hit on Killers of the Flower Moon, Napoleon, and Argylle, but the report says that isn’t the whole story.
Variety opens with the headline news: Apple reportedly spent $700M+ on the three movies, with total box office takings of just $466M.
Sources say the Martin Scorsese-helmed “Killers” cost an eye-popping $215 million (that includes about $40 million in Covid-related costs). In fact, Apple spent at least $700 million to make and market just three films: “Killers,” Ridley Scott’s “Napoleon” and Matthew Vaughn’s “Argylle.” The trio have earned a combined $466 million worldwide at the box office, with “Napoleon” leading the pack at $221 million, followed by “Killers” ($157 million) and “Argylle” ($88 million).
It also appears unlikely that the company came anywhere close to making up the difference in extra Apple TV+ subscriptions.
But Apple has a third revenue stream: premium video on demand (PVOD). Once the theatrical run is over, and before they air on Apple TV+, you can buy or rent them from iTunes or Amazon Prime – at hefty rates! Getting early access to Napoleon, for example, cost $19.99 to rent, or $24.99 to buy.
That’s a lot of money just to avoid waiting a couple of months for movies to hit Apple TV+, where a one-month subscription of $9.99 would make sense even if you only want to watch one movie.
But it seems enough people were sufficiently eager to fork out the cash, as Variety says that this is what made at least two of the three movies profitable.
Apple isn’t complaining, at least not about “Killers” or “Napoleon.” A studio source says both films are profitable, buoyed by ancillary revenue streams. Both ranked among the 10 highest-grossing films of the past year on the Apple app store, with “Killers” holding the top spot for four weeks.
Effectively, then, Apple is getting free content for Apple TV+, with box office and PVOD income paying the bills.
The company is also potentially in line for multiple Oscars in this week’s ceremony, scoring a total of 13 nominations between Killers and Napoleon.
FTC: We use income earning auto affiliate links. More.
Comments