Podcast Summary: Apple’s ‘F1’ Win and Big Tech’s Streaming vs. Theaters Debate

Podcast Information:

• Title: The Town with Matthew Belloni
• Host: Matthew Belloni (The Ringer)
• Episode: Apple’s ‘F1’ Win and Big Tech’s Streaming vs. Theaters Debate
• Release Date: June 30, 2025

1. Introduction

In this episode of The Town with Matthew Belloni, host Matt Belloni delves into the recent box office performance of Apple's theatrical release, F1, and explores the broader debate between streaming giants and traditional theaters. Joined by Lucas Shaw from Bloomberg and Craig Horobeck, the discussion navigates through Apple's strategic positioning in the film industry, comparisons with other streaming services, and the implications for future movie releases.

2. Apple’s F1 Box Office Performance

The episode opens with an analysis of Apple's F1, which surpassed expectations by grossing $55 million domestically and $144 million worldwide during its opening weekend. Despite being deemed an "original story" in a niche racing league, F1 managed to outperform sequels like Megan 2.0.

Key Points:

• Budget vs. Revenue: While F1 reportedly cost around $250 million (with Apple suggesting a lower figure), its box office returns indicate a solid performance relative to its high budget.

  Matt Belloni [04:48]: "Actually, it's not a hit. We have to judge all of these movies based on their performance in theaters and then they have the afterlife on the service."

• Perception as a Win: Lucas Shaw emphasizes that while F1 may not be a traditional "hit," its performance boosts Apple's reputation in the cinematic landscape.

  Lucas Shaw [05:37]: "I think the biggest reason that I sort of called it a win for them is it perception-wise. It has like good mojo in culture."

• Critical Reception: The film received favorable reviews and maintained strong international performance, contributing to its status as a success for Apple.

  Lucas Shaw [06:17]: "They wanted to get their money back on the theatrical release. You can get some benefit from it on streaming."

3. Streaming Giants vs. Traditional Theaters

The discussion transitions into how major streaming services like Apple, Amazon, and Netflix are navigating their relationships with traditional theaters amidst evolving consumer habits.

Key Points:

• Apple’s Theater Strategy: Apple has recently scaled back its theatrical releases, holding off after F1 to evaluate future projects based on its performance.

  Matt Belloni [07:03]: "I think it was wait and see, I believe. And what they are going to do is they're going to evaluate every movie against this movie."

• Amazon’s Theatrical Push: Unlike Apple, Amazon remains committed to releasing films in theaters, with 14 movies scheduled for theatrical release the following year, signaling a robust investment in cinemas.

  Lucas Shaw [15:01]: "Amazon has 14 movies scheduled for release. I mean, it's a little unfair to judge the Amazon theatrical push because until now it really has been one-offs."

• Netflix’s Reluctance: Netflix continues to distance itself from theatrical commitments, focusing more on streaming-exclusive releases and experimental content that resembles social media formats.

  Lucas Shaw [14:35]: "Ted Sarando says that the audience has moved on from theaters."

4. Future Plans for Apple in Theatrical Releases

Analyzing Apple's future in the film industry, the conversation highlights potential shifts based on the success of F1 and the company's cautious approach towards high-budget theatrical projects.

Key Points:

• Distribution Strategy: Apple currently relies on partnerships with established studios like Warner Brothers for distribution but is contemplating building its own distribution arm.

  Matt Belloni [16:01]: "If they start hiring in that area, then I think we'll know they're serious."

• Executive Leadership: Apple's lack of seasoned film executives may influence its strategic decisions regarding theatrical releases and overall film production.

  Matt Belloni [16:41]: "They don't have a veteran film executive running. Even in the press release touting their success this weekend, it was Zach and Jamie that were quoted, not the head of their film group, Matt Dentler."

5. Blumhouse’s Megan 2.0 Underperformance

Shifting focus, the podcast addresses the disappointing performance of Blumhouse’s Megan 2.0, which opened to $10 million domestically—significantly lower than its predecessor’s $30 million.

Key Points:

• Box Office Decline: The sequel failed to replicate the first film’s success, grossing only $10 million compared to the original's robust performance.

  Matt Belloni [21:09]: "Megan 2.0, 10 million opening. First one open to 30 million and grossed 180 million worldwide."

• Possible Reasons: The underperformance is attributed to factors such as unfavorable release dates, market saturation of horror films, and diminished cultural buzz.

  Craig Horobeck [22:40]: "With Megan? I feel like the reason why it underperformed is it came out in June and there's a million other good movies out."

• Impact on Franchise: Despite positive reviews and higher cinema scores compared to the first movie, Megan 2.0's failure raises concerns about the longevity of the franchise.

  Lucas Shaw [22:04]: "It's very unusual to see three or four Blumhouse movies in a row underperform, don't you think?"

6. Additional Insights

Beyond the main topics, the episode touches on other noteworthy events in Hollywood:

• Jeff Bezos and Lauren Sánchez’s Wedding: Attended by celebrities like Tom Brady and Oprah, the wedding in Venice was described as "magical" yet discreet.

  Craig Horobeck [26:36]: "I think Oprah was. You could see the disappointment on her own face."

• James Bond Director Announcement: Denis Villeneuve was named as the new James Bond director, a surprising yet welcomed choice given his visionary approach.

  Matt Belloni [27:00]: "Denis has a very specific style to him and it'll be fascinating to see how that translates to Bond."

• Netflix’s Poop Cruise Documentary: Highlighting Netflix’s trend towards sensational, low-budget documentaries that dominate streaming charts despite lacking traditional prestige.

  Matt Belloni [29:12]: "These are a reality show version of a documentary and that is what people like to watch on Netflix."

7. Conclusion

The episode concludes by summarizing the critical points discussed, emphasizing the precarious balance Apple maintains between theatrical success and streaming expansion. With F1 setting a benchmark, Apple's future endeavors in cinema remain cautiously optimistic. Meanwhile, the struggles of Blumhouse and the strategic maneuvers of other streaming giants like Amazon and Netflix paint a complex picture of the evolving entertainment landscape.

Closing Remarks:

Matt Belloni [31:37]: "Another episode you missed is we talked about whether Netflix is going to start do more, doing more YouTube style content and in some ways they already are."

This comprehensive analysis provides listeners with an in-depth understanding of Apple's position in the film industry, the dynamics between streaming services and traditional theaters, and the broader implications for Hollywood’s future.