Apple 'Ready to Spend Billions' on Live Sports Content Over Next Four Years
Apple is on an "aggressive hunt" for potential deals that would allow it to broadcast live sports content on its TV+ streaming service as part of a wider effort to boost subscription numbers, according to a new report from investment firm Wedbush.
In a new investor note, seen by MacRumors, Wedbush analyst Dan Ives said he regards Apple's decision not to acquire a movie studio yet as a clear indication that it now sees live sports programming as potentially a key piece of its future success for growing the audience of its video streaming service.
Apple has not provided details on Apple TV+ subscriber numbers since the digital streaming service began, but Wedbush estimates that Apple TV+ has around 20 million paid subscribers among roughly 45 million viewers, the rest of which are seeing out free trials included with other Apple product purchases.
That's a fraction of the number of subscriptions that the likes of Disney+ and Netflix enjoys. Knowing this, Apple is apparently "ready to spend billions" on live sports content over the next four years to drive the future growth of Apple TV+ and make it a key monetization engine in its burgeoning services ecosystem, which earned it $80 billion in annual revenue in the last financial year.With Apple spending $7 billion annually on original content and having roughly $200 billion of cash on its balance sheet, we believe the company is gearing up to bid on a number of upcoming sports packages coming up for contract/renewals in future years. We note that upcoming sports packages potentially for bid over the next four years that Apple can be involved with (in some capacity/semi-exclusive) are: *NFL (Sunday Night Ticket), Big Ten, Pac 12, Big East, Big 12, other NCAA sports packages (2024 timing), NASCAR, and the NBA/WNBA.*
At the current time, Apple TV+ does not offer support for any kind of live television, providing access only to on-demand television and movie content, so Apple will need to build in a new sports-oriented section with live TV streaming if it completes any deals.
Earlier this month, The New York Post reported that Apple has entered into discussions with Major League Baseball about a potential deal that would see the company broadcasting MLB games next season, which would represent a major foray into the world of live sports content.
Its current lack of live sports access remains a serious hole in Apple TV's programming, with competitors like Amazon already boasting established deals. For example, Amazon's 20 live English Premier League soccer games will return in the 2022/23 season, and the company has inked a deal to air "Thursday Night Football" games starting this fall, for which it paid more than $1 billion for the access.
Tag: Apple TV Plus
This article, "Apple 'Ready to Spend Billions' on Live Sports Content Over Next Four Years" first appeared on MacRumors.com
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