“Killers of the Flower Moon” Box Office: Apple’s $200 Million Gamble and the Streaming Metrics Dilemma
Apple’s inaugural major theatrical release, “Killers of the Flower Moon,” has raked in $120 million globally over three weekends. Evaluating the success of this venture has proven challenging, prompting varied perspectives within the industry. For a streaming service-backed movie, the figures may not position it for profitability, considering the hefty $200 million investment in this acclaimed crime epic helmed by Martin Scorsese and featuring stars like Leonardo DiCaprio and Robert De Niro.
Had a traditional studio released the film, its performance, marked by a 61% drop in the second weekend but a subsequent 25% decline, might label it a flop. However, streaming platforms operate under different success metrics, with Apple placing more significance on streaming subscribers than box office numbers. As tech giants like Apple and Amazon venture into traditional film releases, investing $1 billion annually, the industry’s perception of box office success undergoes transformation.
Analysts note that Apple’s financial success is not solely tied to film profitability, given its diverse revenue streams and focus on building its streaming platform. While traditional studios might struggle to justify the economics of such a large-budget film targeting adult audiences, Apple’s substantial investment in “Killers of the Flower Moon” underscores its commitment to quality content. Paramount Pictures initially planned to finance the film but brought in Apple as production costs escalated, securing a distribution fee and avoiding potential losses.
While box office sales fell short of expectations, theaters appreciate the film’s appeal, even with its extended runtime. Apple’s future projects, such as Ridley Scott’s “Napoleon” and Matthew Vaughn’s “Argylle,” also reflect a commitment to top-tier talent, despite the potential for theatrical releases not proving financially lucrative.
As one of the wealthiest companies globally, Apple’s spending on entertainment is significant, raising questions about the importance of theatrical profitability. Some argue that box office earnings are pure profit for Apple, given the absence of direct streaming revenue. However, the company invests substantially in theatrical distribution and awards campaigns, impacting the film’s break-even point, estimated between $500 million to $600 million.
In navigating the evolving landscape of streaming and theatrical releases, Apple, along with Amazon, faces a learning curve, adjusting to the unique dynamics of box office success and the shifting paradigms in the entertainment industry.