Apple will spend $1 billion a year to produce movies to be released in theaters, to raise its profile in Hollywood and attract more streaming subscribers, Bloomberg reports.

Apple has approached movie studios to release a few films this year, including Martin Scorsese’s “Killers of the Flower Moon” starring Leonardo DiCaprio; “Argylle,” a spy thriller from director Matthew Vaughn; and Ridley Scott’s “Napoleon.”

A $1 billion annual investment would be a significant increase in film production for Apple, which has mostly only concentrated on its streaming services, with only a handful of limited theater releases.

For its initial launch, Apple aims to arrange for its movies to be seen in thousands of movie theaters for at least a month, sources familiar with the plans told Bloomberg. However, Apple has not formalized any plans—including distribution fees and marketing budgets—as of yet.

Fewer Apple TV+ Subscribers

Apple TV+ has an estimated 20 million to 40 million subscribers, fewer than Netflix and Disney+.

Apple will need a large outlay to enter the movie theater market, Bloomberg reports, as studios spend as much as $100 million on a movie’s marketing alone. Apple TV+ spends most of its budget on TV shows.

Apple’s film ambitions have grown since it won an Academy Award in 2021 for “CODA,” even though it earned less than $2 million at the box office. Apple acquired the movie at the Sundance Film Festival for $25 million.

Apple and Amazon.com are upping their entertainment investments at the same time Amazon has laid off thousands and Apple has been cutting costs.

Boost to Theaters

Movie ticket sales are about one third they were in 2019, before the pandemic, and two of the biggest chains are struggling: AMC Entertainment Holdings Inc. and Cineworld Group Plc, which filed for bankruptcy last year.

Movie chains have blamed the lack of new releases for low sales. Indeed, production was halted at many studios during COVID.

The growing competition among streaming services to produce movies may reverse that trend. Amazon aims to issue 12 to 15 movies a year for theatrical release, and Paramount, Walt Disney Co. and Warner Brothers Discovery are also looking to produce movies to be seen in the cinema.

Netflix, for its part, is aiming to make movies that will be streamed and aired in theaters at the same time. It outspends Apple and Amazon on original movie content.