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Big tech and major media companies, including Google (GOOGL) and Disney (DIS), are engaged in a fierce battle for sports rights as they aim to enhance their offerings and attract dedicated fan bases.
Apple (AAPL) stands out as a company dedicated to strengthening its sports content. Its successful partnership with Major League Soccer (MLS) has garnered attention. Rumours suggest that Apple is interested in bidding for rights in Formula One (F1) and the NBA. Some analysts have even speculated about Apple purchasing ESPN from Disney.
As Apple faces stiff competition in the streaming wars from companies like Netflix (NFLX), Disney, and Amazon (AMZN), securing the right content is crucial. While Apple does not disclose specific subscriber figures for its Apple TV+ service, it consistently emphasizes the importance of services, particularly streaming, in its long-term strategy.
Apple’s focus on sports is evident, particularly in the wake of the MLS success, particularly after the signing of soccer icon Lionel Messi with Inter Miami. The Messi effect led to a significant surge in ticket sales, sports apparel, and, most importantly, sign-ups for Apple’s MLS Season Pass streaming package. This achievement aligns with Apple’s strategy of prioritizing quality over quantity, concentrating on sports that are exclusive, have global appeal, and offer a premium experience.
Longtime Apple executive Eddy Cue, Senior Vice President of Services, played a pivotal role in Apple’s venture into sports content, emphasizing the company’s desire for more significant control over how sports content is presented and delivered, utilizing advanced technology.
Further exemplifying its strategy, Apple is reportedly preparing a bid for the global television broadcast rights for F1, an estimated $2 billion annually for seven years, which is double F1’s current earnings from existing media deals. F1 is recognized as an exclusive, global sport with a substantial audience, potentially attracting a higher-income consumer base. This aligns with Apple’s image as a premium brand.
Apple’s push for exclusive, high-quality sports content reflects its aim to appeal to a global and premium audience. While traditional sports have faced challenges in streaming due to older demographics, F1’s younger audience offers significant growth potential.
Looking ahead, Apple’s ambitions could include acquiring ESPN, which Wedbush analyst Dan Ives believes is a logical step. While such a deal may cost Apple approximately $50 billion, it could offer valuable sports content, major TV rights for professional and college sports, and enhance Apple’s attractiveness in the global sports streaming landscape.
Apple’s approach underscores its commitment to distinguishing itself in the competitive streaming market by focusing on top-tier, globally appealing sports content.
