Last Sunday night, Apple broke through Oscar’s glass ceiling when it became the first streamer to capture Hollywood’s highest honor, the Academy Award for Best Picture with CODA. CNBC entertainment analyst Jon Fortt questions the underlying business model behind Apple’s foray into feature films.
Apple stepped up with $25M to acquire distribution rights for CODA at last year’s Sundance Film Festival, and then released it last August with little fanfare at a handful of art-house theatres and to stream on Apple TV+. According to a recent report from Deloitte, many consumers sign up for streaming services to watch a specific title or event and then cancel their subscription.
On the other hand, by serving up award-winning, buzz-worthy content on Apple TV+, the company is able to establish itself as one of the leading entertainment providers, which increases the value it can offer consumers through its devices. iPhones, iPads, and MacBooks are the business foundation of Apple, the most valuable company in the world with a market cap of nearly $3 trillion.