The fictional Kool-Aid movie in Apple's new satire isn't that far from reality

• Apple TV+'s "The Studio" satirizes Hollywood's art-commerce tension.
• The Seth Rogen show parodies brand films and nods to real-life successes like "Barbie."
• Insiders say its portrayal of branded entertainment is positive for the industry despite the jokes.

Warning: Minor spoilers for "The Studio" episode one.

Apple TV+'s buzzy new satire, "The Studio," skewers Hollywood's recent embrace of brands with a prominent storyline about a "Kool-Aid" movie.

You might think the real-life people who make brand-backed films and TV shows would be miffed. You'd be wrong. They love it — though they might have some notes.

Four Hollywood insiders told Business Insider they felt the show was positive for the branded entertainment business because the series legitimized the concept by poking fun at it.

Jae Goodman, whose Superconnector Studios is working with the likes of LVMH and AB InBev to break into Hollywood, said he's already had a couple of directly correlated incoming calls from people in the wake of the show, asking: "Should we be thinking about this?"

The first episode of "The Studio" centers on Seth Rogen's character Matt Remick, a film purist, getting promoted to be the head of the fictional Continental Studios. The catch? He only gets the job after promising his boss, played by Bryan Cranston, that he'll make a movie based on the Kool-Aid brand. In the episode, Remick initially snubs filmmaker Nick Stoller's ("Forgetting Sarah Marshall," "Captain Underpants") commercial adaptation to work with Martin Scorsese, who wants to make his dream film about the Jonestown massacre. Hilarity ensues.

"Even if it's done in an over-the-top way, it's highlighting the state of storytelling in Hollywood right now," said Brad Roth, president of Known Originals, which worked with Toys "R" Us and Fox Studios for a competition reality series, "Family Faceoff," and is now working with The Knot on a slate of TV shows and films.

What the show gets right about branded entertainment

One immediately recognizable scene is the studio's hopes of repeating the success of "Barbie." 2023's Barbie blockbuster movie is the ultimate in brand films, earning critical praise, winning an Oscar, and topping the list of highest-grossing pictures.

"Hollywood is Hollywood, and if something works, they want to keep it going as long as they can," said Angela Matusik, who consults with brands on entertainment strategies.

Episode one's resolution — in which Remick ultimately throws Scorsese under the bus and goes with Stoller's more commercial pitch — also rang true to insiders.

While Kool-Aid executives aren't portrayed in the show, Remick's actions speak to the compromises required to bring these kinds of projects to fruition, which people who work at the intersection of brands and entertainment know all too well. And as much as Remick was wedded to the auteur version of the film, the Stoller one would probably be better, Known's Roth said.

"It is such a pop culture icon that feels more aligned with Nick's take," he said. "It may not get into the pantheon of great films, but it probably is the right take."

"The Studio" also shows that, ultimately, there's a great and awful way to execute any idea, said Marc Gilbar, president of Imagine Brands, IP & Partnership at Imagine Entertainment, who's led award-winning films for brands including Nike, Unilever, and Procter & Gamble.

"If you told someone there was a movie in development about Facebook, Nike, Barbie, Lego, they would be pretty skeptical, but then again, with David Fincher, Ben Affleck, Greta Gerwig, or Lord and Miller behind them, those all become great movies," he said.

What the show leaves out

So, what did "The Studio" get wrong?

For one, insiders said the nitty-gritty of getting all the stakeholders aligned to make a brand film is more nuanced than its portrayal in "The Studio."

The show also depicts brands as thirsty to get in bed with Hollywood. While it's true to some extent — Mattel has other films in the works based on toys like Uno — in reality, brands aren't just a blank check, as some studios and producers think.

"They think this is a big white horse that's going to ride in and save the film industry," Matusik said.

In uncertain economic times like today's, marketers tend to turn away from formats like films that will come out when the world may be a much different place, in favor of ad formats that promise a quick payoff.

The show got people talking about Kool-Aid

One big question people had: How much did Kool-Aid know, and when did they know it?

Sometimes movies and shows are made about brands without their involvement, as was the case with 2023's "Air" about the origin of Air Jordans. It was made independently of Nike.

In the case of "The Studio," which pointedly recalls Kool-Aid's association with an episode of mass death, it's hard to imagine the brand played an active role.

A spokesperson for parent Kraft Heinz said the brand got a heads-up when the show was filmed and about to air and that while it "was not given the opportunity" to be involved in developing the show, its inclusion speaks to its strong cultural relevance. The rep added that Kool-Aid "would love to find a way to collaborate with them in the future."

Despite the prominent Jonestown reference, brand entertainment insiders said they felt Kool-Aid's starring role in multiple episodes was a triumph.

"To be in this funny show, that's such a great win for the brand," Roth said. "I haven't talked about Kool-Aid since I was 12 years old. Everyone who's watching that show is talking about Kool-Aid."