‘F1 gives Apple its first bonafide box office hit

Apple’s “F1 The Movie,” starring Brad Pitt, posted solid, though not blockbuster, ticket sales over the weekend, topping the North American box office. The well-received sports film marked a crucial theatrical win for Apple after flops like “Argylle” and “Fly Me to the Moon.” Last year, Apple scrapped the wide release of “Wolfs” at the last moment, opting to premiere it on Apple TV+ instead.
Brooks Barnes for The New York Times:
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The movie, made by Apple Original Films and starring Brad Pitt as a down-on-his-luck Formula 1 driver, took in roughly $55.6 million from Thursday through Sunday at 3,661 theaters in North America, according to Comscore, which compiles box office data. Turnout was especially big at IMAX locations, where tickets sell for a premium.
“Apple finally has a big theatrical hit,” said David A. Gross, a film consultant who publishes a leading newsletter on box office numbers. “A lot about this movie looks easy, like a surefire hit, but it’s not. Racecar films and sports dramas have a long and mixed track record.”
“F1” collected an additional $88.4 million overseas, where it played in about 32,400 theaters. Warner Bros. distributed “F1” on behalf of Apple, which used Apple stores, Apple Music, the Apple Maps app and its annual developer conference to promote the film. The marketing campaign was aggressive even by Hollywood standards: Apple also used its Apple Pay system to notify iPhone users about “F1” and offer a $10 discount at Fandango for anyone buying two or more tickets.
Apple’s entertainment programming is overseen by Jamie Erlicht and Zack Van Amburg. “We’re thrilled by the global response to ‘F1’ and grateful to the audiences who’ve embraced the film with such enthusiasm,” Mr. Erlicht said in a statement…
The catch: “F1” was expensive, costing nearly $250 million to make and at least another $125 million to market worldwide, analysts said. (Some estimates are even higher.) For Apple to make money, the movie will need to attract substantial crowds in the weeks ahead, when it will face formidable competition in the form of “Jurassic World: Rebirth” and “Superman.”
Domestic ticket buyers gave “F1” an A grade in CinemaScore exit polls. The Rotten Tomatoes audience score stood at 97 percent positive on Sunday, boding well for word-of-mouth.
Apple declined to comment on its “F1” spending. Tax incentives and roughly $40 million in product-placement fees helped defray some costs.

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MacDailyNews Take: So, Apple sold $40 million in sponsorships for a non-existent FORMULA ONE team, “APX GP.” Expensify serves as title sponsor of the fictional team. As per Sports Business Journal (SBJ):
Apple and Bruckheimer Films sold more than $40M in sponsor product placement to over a dozen companies who appear in the film or have promoted it… While it is not yet clear what Expensify ultimately paid, Apple was asking eight figures for the best assets when it first pitched the deals several years ago, an F1 industry executive familiar with the matter told SBJ.
In the movie, Expensify is everywhere, directly included not only with moments like a scene at the team HQ where its name was splashed prominently on the dais during a mock press conference, but also to real-life Sky Sports play-by-play man David Croft saying “Expensify APX GP” (pronounced Apex) several times while his voice-over commentated the races. Expensify CFO & Dir Ryan Schaffer told SBJ that the company is hoping for a 5:1 return on its investment in the form of new sign-ups and up-selling current customers versus what Expensify paid for the sponsorship, although a lower ratio could be acceptable depending on how much its brand awareness numbers increase.
Read more via Sports Business Journal here.

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