Apple partners with film tycoon Chernin: North Road's new film will be prioritized for Apple TV+

According to Zhitong Finance APP, American consumer electronics giant Apple Inc. (AAPL.US) has reached an important agreement with Hollywood's top entertainment studio North Road, led by American media mogul and film producer Peter Chernin, to prioritize the release of new films produced by the latter's studio. This also indicates the growing ambitions of this American tech giant in the U.S. film and television industry and its increasing aspirations in Hollywood production.

Apple's latest collaboration with Chernin means that the Hollywood super producer team behind "Back in Action" and "Ford v Ferrari" is about to move from global streaming giant Netflix to Apple.

It is understood that the agreement grants Apple the exclusive rights to purchase and distribute new projects being developed by Chernin. For the past five years, North Road has been collaborating with streaming giant Netflix. Chernin's Chernin Entertainment can still produce films that are already in progress for other studios, including two major works set to premiere on Netflix's streaming platform: the action thriller "Apex," starring Charlize Theron, and the horror film "11817," co-starring Wagner Moura and Greta Lee.

"We have had a great collaboration with Apple in the field of film and television series. The Apple streaming team is both smart and bold, and they always provide any support — we are excited to extend this success to film production," Chernin said. He previously produced exclusive series for Apple, including "See" and "Truth Be Told." The next collaborative project between the two will be the heavyweight series "Chief of War," starring Jason Momoa, which is scheduled to premiere in August.

As a newcomer in Hollywood, Apple is accelerating the expansion of its film business to continuously grow its streaming platform Apple TV+ service. Although Apple has launched globally popular original series such as "Ted Lasso" and "Severance," it has yet to replicate the same level of success in top Hollywood films. More significantly, on June 27, Eastern Time, Apple will release one of its most ambitious films to date — the racing movie "F1," starring Hollywood superstar Brad Pitt.

Chernin is highly respected in the media industry as an investor and film producer. He has long worked with Rupert Murdoch at News Corp and has also led Fox before establishing his own company. His investment firm, Chernin Group, has invested in Barstool Sports, anime streaming service Crunchyroll, among others; his entertainment company is primarily responsible for producing films and television series.

Chernin has integrated all entertainment assets, including the production teams of hit reality shows "Love is Blind" and "The Ultimatum," into North Road. The company will also produce dozens of projects this year, covering documentaries, feature films, reality shows, and series Chernin initially produced "Ford v Ferrari," the globally popular reboot of the "Planet of the Apes" series, and the sitcom "New Girl" for Fox. In 2020, he signed a film production agreement with Netflix, launching the "Fear Street" series and the comedy "Back in Action" starring Jamie Foxx and Cameron Diaz. However, as the agreement expired, Chernin began looking for new opportunities with a new partner.

Netflix has reduced its annual film output—though it remains one of the largest film production companies in Hollywood—while Apple is aggressively expanding. This year, Apple has released the streaming action blockbuster "The Gorge" and the heist film "Fountain of Youth." These films are directly available on Apple TV+; meanwhile, "F1" will first be released in theaters worldwide before streaming.

Apple CEO Tim Cook recently disclosed more details about the company's streaming platform Apple TV+ and its film strategy, emphasizing that Apple is essentially a "tool maker," highlighting that Apple TV+ is not a marketing tool for the iPhone but aims to be a great business while telling great stories.

"We are a tool maker," Cook said in an interview with Variety while promoting the upcoming F1 film "F1: Drive to Survive." He was referring to Apple's products such as computers, phones, and tablets. "We also have the ability to create tools for creative people, enabling them to do things they couldn't do before. Therefore, we have had extensive collaborations with Hollywood even before officially entering the film streaming business."

Apple TV+ is Apple's global streaming subscription platform launched in 2019, while Apple Original Films is the film label/production department responsible for feature film production and distribution within Apple. The former acts as a "theater," responsible for consumer screenings and membership operations; the latter is akin to a "studio," focusing on project initiation, investment, filming, theatrical promotion, and subsequent exclusive streaming on Apple TV+.

Apple TV+ and Apple Original Films are two sides of the same coin: almost all feature films bearing the "Apple Original Films" label will ultimately land on Apple TV+, and the majority of the original content produced for Apple TV+ is also developed by Apple Original Films.

It is reported that "F1: Drive to Survive," starring Brad Pitt and scheduled for a global theatrical release on June 27, is a major collaboration project between Apple Original Films and Hollywood giant Warner Bros. (WBD). The film will first be released in theaters before exclusively streaming on the Apple TV+ platform