Apple has pockets deep enough to compete when it comes to broadcasting live sports on Apple TV.
Live sports is one of the few leftovers from the days of analog television that have translated well into the new digital streaming era.
Sports still have a special place in the American psyche and games are one of the few television programs that can consistently bring tens of millions of eyeballs to the screen.
The top streaming services like Amazon Prime (AMZN) – Get Amazon.com, Inc. Report and Apple TV (AAPL) – Get Apple Inc. Report have recognized this and are now spending top dollar, along with the legacy broadcast companies, for the right to broadcast games.
Apple is spending about $7 billion annually on original content for Apple TV+, according to a recent Wedbush note, as it looks to boost its paid subscribers numbers.
Apple TV+ helped Apple’s burgeoning “services” segment reach $80 billion in revenue in 2021 with acclaimed, exclusive television shows like Ted Lasso and the Morning Show, but now the company is getting into live sports, which will open up a whole new level of revenue growth for the service.
Apple Takes a Swing With MLB
Major League Baseball executives have been busy with a labor lockout for the past three months. But the lack of Spring Training games, or even a date for starting games back up, hasn’t stopped the league from selling the game to those interested in buying.
There were reports in January that Apple was in talks with MLB about carrying games for the upcoming season.
On Tuesday, those reports were corroborated with Apple announcing “Friday Night Baseball,” as a weekly doubleheader that will be available in nine countries exclusively on Apple TV+.
Those countries include the U.S., Canada, Australia, Brazil, Japan, Mexico, Puerto Rico, South Korea and the U.K.
The games will be accompanied by live pre- and post-game shows that will be produced by Apple. Apple is also producing an MLB Big Inning, a “SportsCenter” type live show that will feature highlights and live look-ins at ongoing games for U.S. subscribers.
Subscribers in the U.S. and Canada will also have access to a 24/7 livestream with game replays, news and analysis, highlights and other MLB content.
“Baseball has a special place in the heart of so many Apple customers — not just in the United States, but in many countries around the world. We’re proud to make Apple TV+ the home for great baseball moments throughout the season,” said Peter Stern, Apple vice president of services.
Apple’s Push Into Sports
While Apple did not reveal the financial terms of the deal, the company is now picking up where Disney’s (DIS) – Get Walt Disney Company Report EPSN left off with some of its coverage of MLB.
In 2021, ESPN announced it reached a new, seven-year media rights deal with Major League Baseball through 2028 that will include only 30 games for $560 million.
That is down from the $700 million deal that expired after last season. But with Apple now on board and the larger seven-year deal extensions the league signed with Fox (FOXA) – Get Fox Corporation Class A Report and Turner Sports.
This news comes as Apple TV is apparently in the running for a major coupe as it looks to take over the NFL’s popular Sunday Ticket package from AT&T’s (T) – Get AT&T Inc. Report DirecTV.
Apple is making its way into live television sports in a big way and the company has pockets deep enough to make it a major player.
