Should Apple buy a movie theater chain to bolster Apple TV+? I don’’t think it will happen, but, hey, I never thought Apple would make an Apple Car.
An interesting opinion piece at Slashfilm asks, “Are Streaming Services Going To Buy Movie Theaters?,” then poses answers on why this. might make sense. Here’s the gist: …. it might not be insane to imagine a world in which one (or several) of the major streaming services out there decide to invest in purchasing movie theaters, effectively putting them in the exhibition business (in addition to being in the streaming business). That may sound a little wacky and backward but there are plenty of reasons this could be an attractive option moving forward and it boils down to a couple of major points – talent and revenue.
The article posits that such a move would have several benefits:
° Streaming services such as Apple TV+ could ensure filmmakers that any films they’re funding will get a “robust” theatrical release in addition to the streaming release.
° Streamers are spending a fortune on content and subscriptions may not be enough to break even. “One way to potentially make up some revenue when it comes to these bigger projects would be to get into the exhibition business and control the entire revenue stream. Release the big movies in your service’s chain of theaters, make some money at the box office without having to cut in an exhibition partner (or at least make that a smaller part of the equation), and mitigate the cost that way.”
° It would give streamers like Apple TV+ even more control. “Studios in the early days of Hollywood used to own theaters and, oddly enough, we may be closer than anyone realizes to this old-school mentality becoming a reality once again.”
