January 26, 2022

Apple ready to invest billions in live sports broadcasting

Apple is aggressively hunting down potential deals that would allow it to stream live sports content on its TV + streaming service, according to a new report from investment firm Wedbush, as part of a larger effort to increase the number. subscriptions. An approach that resembles that of Amazon on Prime Video which is in particular the official broadcaster of certain Ligue 1 matches.

Increase the audience of the Apple TV + service

In a new note to investors, analyst Dan Ives of Wedbush said he interpreted Apple’s decision not to acquire a movie studio yet as a clear indication that it now views live sports programming as an issue. key element of its future success in increasing the audience for its video streaming service. This confirms the words of last July which highlighted a potential agreement between Apple and the NFL.

nfl logo sunday apple

Apple has never deigned to provide details on the number of subscribers to Apple TV + since the launch of the streaming service, but various analysts estimate that there are around 20 million paying subscribers, and 45 million viewers in the world. total, the difference being free trials included. An interesting figure but far from the behemoths of the sector that are Disney + and Netflix, having respectively more than 100 and 200 million subscribers.

Knowing all of this, of course, Apple is apparently “poised to spend billions” on live sports content over the next four years to drive Apple TV + ‘s growth and make it a key monetization driver in its ecosystem. booming service business, which brought it $ 80 billion in annual revenue in 2021.

To date, Tim Cook’s company has spent $ 7 billion a year on original content for his service. But with more than $ 200 billion available, the company could create a tidal wave with contracts on the NFL, MLB, NCAA, NASCAR, or even the NBA / WNBA. This would be a major change, by the way, because Apple TV + does not currently support live TV.

This echoes several rumors, such as the acquisition of the rights to the NFL, but also to Major League Baseball that we mentioned earlier this month. There is no doubt that “soccer”, or football on our continent, could be of interest to Apple as well. Amazon has just bought 20 English Premier League football matches in the 2022/23 season, and the company has reached a deal to broadcast “Thursday Night Football” matches starting this fall, for which it has paid over a billion dollars.

Do you think that streaming sports could allow the company to overtake Netflix and Disney +? The Wedbush analyst thinks in any case that the AAPL share could exceed $ 200 in 2022.