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Apple seems to lease a Hollywood hub for show and movie shoots

Apple Co., Ltd.

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He told a real estate developer that he would like to lease a large production campus in Los Angeles to expand his entertainment business. According to people familiar with the matter, the move will be even deeper. The presence of big tech in Hollywood..

Apple told development executives that it is considering some possible locations. The new hub could exceed 500,000 square feet, complementing Apple’s current deal of leasing a soundstage for filming in the Los Angeles region and elsewhere in the world.

Since its launch in November 2019, Apple TV + has streamed several well-known shows and movies, including the hits “Ted Lasso” and “The Morning Show.”

Netflix Co., Ltd.

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Or

Amazon.com Co., Ltd.

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As expansion is currently underway, the company is preparing to compete more directly with other tech players using high-budget films and a series of new film and television deals.

The larger Apple footprint in the entertainment capital will reinforce the commitment of the world’s most valuable companies in the streaming war that defines modern Hollywood. Apple TV + occupies an intriguing position in the industry and is known for its reputed shows, but the scale many producers envisioned, especially given its aggressive commitment to music and podcasts. Is missing.

In recent months, investors have come to believe that even Goliath like Apple needs to double entertainment if it wants to compete for subscribers as an integration like WarnerMedia-

Discovery Co., Ltd.

Tie-ups change the market For top heavy brawls. Apple executives seem to agree, and last year announced a series of other initiatives showing a new Leonardo DiCaprio movie, a record acquisition, and a new chapter in Hollywood’s efforts.

“The Morning Show” Reese Witherspoon is streaming on Apple TV +.


Photo:

Apple.

But the need for more sound stages speaks to one of the surprisingly competitive aspects of streaming. Securing space Needed to make a show or movie.

One of the reasons Apple has been on location scouting for months, according to one, is that much of the available space in the city is occupied. With hundreds of millions of subscribers from around the world, the sound stage across Los Angeles is booked months in advance by a service that requires constant programming cancellations, and companies get their own space. Or you will be prompted to lock in a lease that lasts for several years.

Another person familiar with the company’s plans warned that the final square foot target has not been determined and could be less than 500,000 square feet.

Other technology competitors are taking different approaches to establishing their physical presence in Los Angeles. Amazon occupies most of the 14-acre vast Culver Studio space where “Gone with the Wind” and “Citizen Cane” were filmed. Netflix occupies several sound stages in the region, but is also independently built, purchased and developed in Albuquerque, New Mexico.

At Apple, Mike Mosalam, one of the company’s leading production real estate executives in Los Angeles, joined in January to help oversee the sound stage strategy. Mosallum was previously the director of production planning and studio leasing at Netflix.

There are signs other than real estate planning that Apple’s entertainment ambitions are rising. The company produces the Martin Scorsese movie “Killers of the Flower Moon,” an Oklahoma-based movie starring DiCaprio. Shooting in the state..

The right to smash Hollywood in 2016 and get the movie involved in a bidding war when it’s pedigree is already a hot topic for Oscar. With a budget of over $ 200 million, it’s an anomaly in Hollywood today. It is an expensive movie that is not based on comic books.

Viacom CBS Of a corporation

Paramount Pictures initially planned to raise money for the movie, but abandoned it when the price tag went up. Apple has intervened to cover that budget.

Jason Sudeikis (left) and Brendan Hunt in the “Ted Lasso” scene on Apple TV +.


Photo:

Colin Hatton / Associated Press

Earlier this year, Apple set another acquisition record when it wrote another breathtaking check in Hollywood and paid $ 25 million for the right to release the popular Sundance Film Festival title “CODA” on service. .. And last week, the company signed a first-look deal with the production company of Adam McKay, the best-known director for hits such as “Anchorman” and “Big Short.”

Elsewhere in Los Angeles, Apple announced in April that it would expand its existing office presence in the Culver City area as part of its $ 430 billion commitment to invest in the United States. Apple said it wants to expand its rank in the region to more than 3,000 by 2026, which is different from current production space plans.

Although it may be dominant in the smartphone industry, Apple is one of many players in streaming services fighting for subscribers.Competitive bets have risen dramatically since the pandemic accelerated plans in studios such as:

Comcast Corp.

With Universal Pictures

Walt Disney Co., Ltd.

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Focus on consumer products.

With the recent announcement that Amazon will pay $ 8.4 billion, including debt, to acquire MGM Holdings, some Wall Street analysts will also strengthen their product library to make Apple stand out. He said it was necessary.

Write to Erich Schwartzel at erich.schwartzel@wsj.com

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Apple seems to lease a Hollywood hub for show and movie shoots

Source link Apple seems to lease a Hollywood hub for show and movie shoots

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