Apple plans to invest $1 billion a year on films to break into cinemas

It's expected that Apple Inc. will spend $1 billion a year producing movies that will be released in theaters, in an effort to raise its profile in Hollywood and lure subscribers to its streaming service.

Movie studios have approached Apple about releasing a few films this year and a slate of more in the future, said the people, who asked not to be identified because the plans are private. The list of potential releases includes Martin Scorsese’s Killers of the Flower Moon, which stars Leonardo DiCaprio; the spy thriller Argylle, from director Matthew Vaughn; and Napoleon, Ridley Scott’s drama about the French conqueror. A spokesperson for Apple declined to comment.

In comparison with previous years, this investment is substantial. Most of Apple’s previous original movies have either been exclusive to the streaming service or released in a limited number of theaters. The company has pledged to put movies in thousands of theaters for at least a month, said the people, though it hasn’t finalized any plans.

Apple also views theaters as a way to build awareness for its TV+ streaming service. If the company is going to spend hundreds of millions of dollars on a Scorsese movie, it wants to turn that into a cultural event. Apple TV+ is estimated to have between 20 million and 40 million subscribers, fewer than rivals such as Netflix and Disney+.