The lights are dimmed, and the excitement builds as “F1: The Movie” races ahead in its theatrical exhibition.
This film, still in its cinematic run, has already shattered records to become the highest-grossing film release for Apple.
Since Apple entered the entertainment sector, its theatrical endeavors have been relatively few, with films like “Killers of the Flower Moon” earning $158 million, “Fly Me to the Moon” at $42 million, and “Argylle” grossing $96 million.
“F1 is a significant film for both Apple and the film industry,” noted Paul Dergarabedian, senior media analyst at Comscore. “It serves as an exemplary model of how a streaming service can create a cinematic experience designed for theaters while simultaneously leveraging its technology to promote the film across countless smaller screens.”
The collaboration with IMAX has also played a crucial role in the film’s success. In the lead-up to production, Apple and the creative team ensured the inclusion of IMAX’s advanced camera technology as well as a three-week theatrical release in their venues.
This strategic partnership meant that Universal’s “Jurassic World Rebirth” was unable to secure a domestic IMAX release and only appeared on IMAX screens in China, with Japan set to feature the film next month.
Of its total global earnings, “F1” has brought in $60 million from IMAX theaters, accounting for over 20% of its overall gross. In North America alone, approximately $27.4 million of its revenue has stemmed from IMAX screenings, which constitutes about 25% of the film’s ticket sales across the U.S. and Canada.
Despite its approaching $300 million global ticket sales, “F1” still faces a challenging path to profitability for Apple. With production costs reported between $200 million and $300 million and an additional estimated $100 million for marketing, the studio is also sharing revenue with Warner Bros. and theaters.
“Given the substantial budget associated with a film like ‘F1,’ achieving profitability can be lengthy due to the revenue distribution process,” Dergarabedian noted. “However, Apple’s financial capabilities and reserves allow them to assume that risk.”
For Apple, success in the entertainment sector looks distinctly different from that of conventional studios. The company is driven more by its core tech offerings—reflecting a market capitalization of $3 trillion—rather than its film and television productions.
Moreover, Apple is not merely investing in film and television content as a means to boost sales of its devices.
“Our foray into this business was motivated by the belief that it would be a sound investment,” remarked Eddy Cue, Apple’s services chief, in a recent interview with Bloomberg. “To achieve continued excellence, profitability from these ventures is essential.”
Apple has already made significant strides in pop culture with successful series such as “Ted Lasso,” “Severance,” and “The Studio,” and it became the first streaming service to win an Academy Award for Best Picture for its 2021 film, “Coda.”
Disclosure: Comcast is the parent company of NBCUniversal and Finance Newso.
