The technology giant is following Amazon into offering live games, but in an even bigger way.
Apple (AAPL) – Get Free Report is serious about building an entertainment empire to rival its technological one, and Major League Soccer is the next step in its evolution as a company.
Apple first made a splash in the sports world when it started exclusive broadcasts of Friday night Major League Baseball games. But that is just the start of Apple’s foray into sports broadcasting.
The company on Feb. 16 unveiled some of the financial behind its next move with MLS.
The company is now offering soccer fans access to MLS Season Pass. Starting Feb. 1, fans can subscribe to Season Pass on the Apple TV app for $14.99 per month during the season for $99 flat per season.
Apple TV+ subscribers will get a special price of $12.99 per month and $79 per season.
“There isn’t a more perfect time to introduce MLS Season Pass, coming off the heels of the most dramatic MLS Cup in history and with MLS as the fastest-growing soccer league in the world,” said Eddy Cue, Apple’s senior vice president of Services. “We’re counting down the days to February 2023 when fans everywhere can enjoy MLS Season Pass on billions of devices — all with no blackouts.”
The upcoming Qatar World Cup could be a big advertisement for the service as soccer fans worldwide whet their appetite with the once-every-four-years tournament.
Image Source: Apple
Apple’s Sports Ecosystem
The 2023 MLS season will be the first in a 10-year, $2.5 billion deal between Apple and the sports league.
The deal is Apple’s biggest investment into sports broadcasting, and on top of the subscription revenue, Apple plans to deliver advertising to both paid and free subscribers as an additional revenue stream for the deal, according to a report.
Outside of MLB and MLS, Apple was heavily linked to the negotiations with the NFL of rights to Thursday Night Football.
Fellow Silicon Valley giant Amazon (AMZN) – Get Free Report eventually won the rights to broadcast the NFL.
But Apple still has another bite at the NFL apple left as the league is currently in negotiations for rights to its NFL Sunday Ticket package.
Streaming services are in the process of switching to a dual-revenue model that features advertising dollars. Meanwhile, signs that the subscription model may have already peaked are starting to appear.
In that environment, a partnership with the NFL, the biggest game in town, is invaluable.
The NFL has seen digital viewership of its games double over the past three seasons, Brian Rolapp, the NFL’s chief media and business officer, wrote in Sports Illustrated recently.
The league reportedly expect its next Sunday Ticket deal to be streaming based, according to reports.
Catching Up to Amazon
Amazon has jumped feet first into sports broadcasting after the NFL announced a 10-year deal in which Amazon will have exclusive rights to broadcast Thursday Night Football starting with the 2023 season. Amazon will reportedly pay $1 billion per season for those rights.
Analysts at JPMorgan maintained their overweight rating on Amazon with the firm, noting that the Thursday Night Football spend comprises more than 13% of Prime Video’s annual $7.5 billion spend.
“As such, TNF represents a significant investment by Prime Video. But we think this is money well spent, and believe it provides Amazon with multiple benefits,” analyst Doug Anmuth said.
Those benefits include the potential to drive new Prime subs while deepening the engagement of existing ones. The firm estimates that Amazon Prime has more than 180 million subscribers, including 75 million in the U.S.
In May, Amazon won the bid for the broadcast rights to the NFL’s Thursday Night Football package for 11 years, reportedly for $11 billion. This week, three months later the company announced that it’s teaming with Nielsen to measure ratings for the broadcast.
