Apple is looking to lease a massive production campus in movie capital Los Angeles for future Apple TV+ productions, the Wall Street Journal reported Tuesday.
The Cupertino company is looking at several possible locations for the hub, which could exceed half a million square feet. Apple already leases several soundstage in LA and elsewhere.
The WSJ reports:
“In recent months, investors have come to believe that even a Goliath like Apple will need to double down on entertainment if it wants to compete for subscribers, as consolidations like the WarnerMedia- Discovery Inc. tie-up turn the market into a top-heavy brawl. Apple executives appear to agree, announcing in the past year a new Leonardo DiCaprio movie, record-setting acquisitions and a series of other initiatives that signal a new chapter for its Hollywood efforts.
But its need for more soundstages speaks to one of the more surprisingly competitive aspects of streaming: Securing the space needed to produce shows and movies.”
The report continues that much of LA’s available production facilities are currently booked up. That means that the likes of Apple have to look at setting up their own facilities rather than renting.
Mike Mosallam, Production Real Estate Lead at Apple, is said to be leading the soundstage strategy. He joined Apple in January, having previously done a similar job at Netflix.
Apple TV+: The story so far
Apple has yet to release any official numbers for Apple TV+ as far as subscribers go. However, it lags significantly behind the likes of Netflix and Disney+. At the end of last year, it had a reported 40 million subs — although many of these were on Apple’s free trial. Netflix, meanwhile, had more than 200 million at the height of the pandemic. This number has since declined. Disney+, meanwhile, has passed 100 million.
Apple TV+ is almost certainly a money loser for Apple right now. But Apple’s deep pockets and hit shows like Ted Lasso still make it a force to be reckoned with.
Source: Wall Street Journal