Now Streaming: Apple weighs starting own film distribution unit

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: This weekend’s most notable new streaming content is season four of popular Hulu comedy-drama “The Bear.” Meanwhile, Disney+ (DIS) subscribers can catch the first few episodes of Marvel Comics’ series “Ironheart,” based on a superhero character who first made a theatrical appearance in 2022’s “Black Panther: Wakanda Forever.” Netflix (NFLX) users can stream the third and final season of drama series “Squid Game,” while Apple TV+ (AAPL) subscribers can watch crime drama miniseries “Smoke,” starring Taron Egerton and Jurnee Smollet.

CHARTER/DISNEY: Charter Communications (CHTR) and The Walt Disney Company announced an expanded distribution agreement that brings Hulu With Ads to all Spectrum TV Select customers at no additional cost. “Starting later this summer, TV Select customers will have access to Hulu’s extensive library of hit TV series and films plus award-winning Originals, alongside existing complimentary access to ad-supported Disney+ and ESPN’s soon-to-launch streaming service, anticipated by the fall of 2025. By expanding the value of TV Select to include popular streaming services like Hulu, TV Select customers will soon have access to a premium entertainment experience with a retail streaming value of more than $100 per month. The newly expanded agreement – which drives incremental value and is financially net positive for both companies – also marks the return of eight Disney-owned linear networks to Spectrum’s channel lineup,” the companies stated.

APPLE FILM DISTRIBUTION: Apple agreed to spend roughly $250M on Brad Pitt movie “F1”, one of its biggest entertainment bets since it entered into Hollywood in 2019, as executives seek hits but only want to produce content reflecting high-end, aspirational qualities, the Wall Street Journal’s Ben Fritz and Joe Flint (WBD) is distributing “F1” for the tech giant, getting a percentage of the box-office revenue and Apple has discussed starting their own theatrical distribution division, according to the report.

NORTH ROAD: Additionally, Apple has signed a deal to release new movies from North Road, the entertainment studio led by Peter Chernin, Lucas Shaw of Bloomberg reported. The agreement will give Apple the first to grab new projects being developed by Chernin, whose company has been aligned with Netflix for the past five years.

FUBOTV/WEIGEL: FuboTV (FUBO) and Weigel Broadcasting Co. announced a multi-year agreement for distribution of seven networks including MeTV, H&I and MOVIES! as well as WCIU, The U, the home of the WNBA’s Chicago Sky, on the sports-first live TV streaming platform. Subscribers of Fubo’s Pro and Elite channel plans can now stream Weigel’s national entertainment networks while customers in the Chicago DMA also have access to WCIU-TV’s local sports, news and entertainment programming. WCIU, The U’s sports coverage includes more than 30 games from the WNBA’s Chicago Sky during the 2025 season.

DISNEY/GUGGENHEIM: Guggenheim raised the firm’s price target on Disney to $140 from $120 and maintained a Buy rating on the shares. The firm, which updated its Disney model to better reflect a refined operating expense outlook at Linear Networks, modestly lower theatrical revenue from relative underperformance of recent films, better than previously forecast Sports advertising revenue and “relatively resilient” attendance and travel trends in the Experiences segment, notes that it lifted its full year segment operating income forecast to $17.7B from $17.6B, which is “modestly ahead” of consensus $17.65B. With Hulu now fully under Disney control, the firm views the company as “well positioned to pursue a unified direct-to-consumer strategy” and further lean into bundle packaging to drive incremental revenue, the analyst added.

STOCK PLAYS: Other publicly traded companies in the space include Comcast (CMCSA), Paramount (PARA), Amazon (AMZN), Roku (ROKU), AMC Networks (AMCX), and Fox Corporation (FOX).