Apple(US:AAPL) Bei Jing Shang Bao·2025-07-09 15:44Core Viewpoint - Apple is increasingly entering the film industry, exemplified by its recent release of the film "F1: Drive to Survive," which has achieved significant box office success despite the high production and marketing costs [3][4]. Group 1: Film Release and Performance - "F1: Drive to Survive" was released on June 27 and has grossed $293 million globally, with $60 million from IMAX theaters, accounting for 20% of total revenue [3][4]. - The film's production cost is estimated between $200 million and $300 million, with an additional $100 million for marketing [4]. - The film has received positive reviews, with an 83% approval rating from critics and 97% from audiences on Rotten Tomatoes [3]. Group 2: Strategic Moves and Market Position - Apple is negotiating to acquire broadcasting rights for F1 events in the U.S., as the current contract with ESPN expires, indicating a strategic move to integrate its film content with live sports [5]. - Unlike traditional film companies, Apple relies less on box office revenue and views films as a marketing tool for its technology and streaming service, Apple TV+ [5][6]. - Apple's unique promotional strategies include placing movie trailers on its streaming service and using its Wallet app to offer ticket discounts [6]. Group 3: Industry Context and Financial Comparison - Apple's film strategy is still evolving, lacking a fixed distribution network in Hollywood compared to competitors like Amazon, which has established a more traditional film distribution model [8]. - The film industry is relatively small compared to Apple's overall revenue, with Disney's projected revenue for 2024 at $91.36 billion and Netflix's at $39 billion, while Apple's revenue is projected at $391.04 billion [9]. - Analysts suggest that Apple's investment in films could yield returns beyond just box office revenue, as integrating hardware sales with F1 broadcasting rights could enhance its content ecosystem [9].