Apple's 'Argylle' Struggles at the Box Office
Apple Original Films' $200M acquisition of 'Argylle' fails to attract audiences, resulting in a disappointing opening weekend. The film, directed by Matthew Vaughn, receives mixed reviews and a low CinemaScore.
Apple's Expensive Film Endeavors
Apple's foray into the world of big-budget movies is not yielding successful results. Despite being a trillion-dollar company, Apple's multi-million dollar film acquisitions like 'Argylle' are struggling to make a profit. These movies are not performing well at the box office and do not have the same ancillary revenue streams as other films. The question now is how long Apple can continue to invest in these underperforming movies and whether they will eventually tighten their belt after this string of expensive failures.
The Purpose of Apple's Film Investments
Many industry insiders speculate that these movies are primarily meant to serve as brand plays for Apple TV+, attracting new global subscribers. Despite their lackluster box office performance, Apple sees them as advertising costs. The company highlights the critical acclaim and awards recognition garnered by films like 'Killers of the Flower Moon'. However, it remains uncertain whether these movies are actually driving Apple consumers to purchase more Apple products.
Challenges for Tech Companies in the Film Industry
Tech companies like Apple and Amazon, who are venturing into the theatrical space, face their own set of challenges. While they have the advantage of using theatrical releases to promote their streaming platforms, they also need to consider other benchmarks of success, such as subscriber churn and sales on their sites. Despite being seen as immune to losses, tech companies like Apple and Amazon still need to prioritize profitability and make strategic decisions based on their bottom line.
