Apple’s “F1: The Movie” Races Past $293 Million, Becoming the Tech Giant’s Highest-Grossing Film
Apple’s foray into major motion pictures is proving to be a surprisingly successful venture, with “F1: The Movie” exceeding expectations at the global box office. The film, distributed in partnership with Warner Bros. Discovery, has already surpassed $293 million in ticket sales, making it Apple’s highest-grossing theatrical release to date.
A New Lap for Apple in the Film Industry
The success of “F1” marks a significant milestone for Apple, which has cautiously entered the film distribution business in recent years. Prior releases include “Killers of the Flower Moon” ($158 million worldwide), “Fly Me to the Moon” ($42 million), and “Argylle” ($96 million). “F1” has quickly outpaced these earlier efforts, even exceeding the $221 million generated by Ridley Scott’s “Napoleon” in 2023.
Strategic Partnership with IMAX Fuels Box Office Success
A key component of the film’s success has been its strategic partnership with IMAX. Before production even began, Apple collaborated with the film’s creative team to secure both the use of IMAX camera technology and a dedicated three-week release in IMAX theaters. This collaboration was so impactful that it reportedly led to Universal’s “Jurassic World Rebirth” being excluded from a domestic IMAX release, limited instead to screenings in China and, subsequently, Japan.
Currently, “F1” has generated $60 million – over 20% of its total global revenue – from IMAX screenings. Domestically, IMAX screenings account for approximately 25% of the film’s $27.4 million in ticket sales within the U.S. and Canada.
Profitability Remains a Challenge Despite Strong Numbers
Despite nearing the $300 million mark, achieving profitability for “F1” will require further success. Reports indicate the film’s production costs ranged from $200 million to $300 million, with an additional $100 million allocated for marketing. Furthermore, Apple is sharing revenue with both Warner Bros. and movie theaters.
“Naturally, a mega budget movie like ‘F1’ can have a rather long road to profitability,” one analyst noted, “given the various revenue splits with movie theaters and Warner Bros. as well, but Apple has the resources to and the cash reserves to take on that risk.”
Apple’s Unique Approach to Entertainment
For Apple, the metrics for success differ significantly from traditional studios. With a $3 trillion market capitalization and the vast majority of its revenue derived from its technology devices, entertainment is not the primary driver of the company’s bottom line.
“We got into this business because we thought it would be a good business,” Apple services chief Eddy Cue recently stated in a Bloomberg interview. “And in order to continue to do great things, you need businesses to be profitable.”
Apple’s broader strategy extends beyond simply boosting sales of its hardware. The company has been steadily gaining traction in the pop culture landscape with critically acclaimed shows like “Ted Lasso,” “Severance,” and “The Studio,” and notably became the first streamer to win the Best Picture Oscar for 2021’s “Coda.”
“F1” represents a crucial test case for the industry, demonstrating how a streaming service can successfully develop and promote a film designed for the big screen while leveraging its extensive technological reach to engage millions of subscribers. The film’s performance suggests Apple is well-positioned to continue its expansion into the entertainment sector.
