“Apple’s Game Plan: Attracting Sports Enthusiasts with Quality Content”

‘Quality over Quantity’: How Apple Wants to Lure Sports Fans to its Streaming Service

Introduction

In the ever-expanding streaming industry, competition over sports rights is heating up between big tech and big media companies, including Google, Disney, Netflix, and Amazon. Apple, in particular, is determined to strengthen its sports offerings and establish a loyal audience of sports fans. While Apple does not disclose subscriber figures for its streaming service, Apple TV+, the company recognizes the significance of sports content in differentiating its offerings from competitors. With this in mind, Apple is focusing on exclusive, global, and premium sports that align with its strategy of prioritizing quality over quantity.

Apple‘s Commitment to Sports Content

Apple‘s push into sports content has been heavily influenced by Eddy Cue, a longtime executive and senior vice president of services at Apple. Cue’s vision goes beyond simply acquiring regional rights; he aims to have full control over how the game is presented, delivered, and enhanced with technology. Apple‘s 10-year, $2.5 billion agreement with Major League Soccer (MLS) exemplifies this strategy. The deal allowed Apple to gain complete control over all of the league’s matches globally, granting the company flexibility and the ability to deliver a captivating sports streaming experience.

The Impact of Lionel Messi and the MLS Deal

Apple‘s MLS deal proved to be a success when soccer superstar Lionel Messi signed with Inter Miami, leading to a surge in ticket sales, sports apparel, and sign-ups for Apple‘s streaming package, MLS Season Pass. According to analytics platform Antenna, there was a 280% increase in sign-ups on the day of Messi’s debut compared to the first day of the 2023 season. This “Messi effect” demonstrated Apple‘s ability to leverage exclusive sports content, such as the arrival of a world-renowned player, to attract and retain subscribers.

The Potential Acquisition of Formula One

Apple‘s ambitions in the sports streaming market may extend beyond soccer. Reports suggest that Apple is preparing a bid for the global television broadcast rights for Formula One (F1). A seven-year deal worth an estimated $2 billion annually would double F1’s current earnings from media deals. Compared to ESPN’s $75-90 million annual payment for its US F1 rights, Apple‘s potential bid is significant. By acquiring F1 rights, Apple aims to tap into a large audience and attract higher-income consumers who appreciate the exclusivity and premium nature of the sport. Furthermore, F1’s younger audience presents an opportunity for growth, especially as traditional sports struggle to engage with younger demographics.

Apple‘s ‘Less is More’ Strategy

Apple is known for its premium products and a sense of exclusivity, and the company wants to extend these qualities to its sports streaming service. By focusing on a select number of exclusive and globally popular sports, Apple aims to cultivate a loyal and affluent audience. The company believes that sports, with its real-time nature and passionate fan base, provides the perfect complement to its premium offerings.

Future Possibilities and Potential ESPN Deal

As Apple continues to expand its sports content, analysts speculate on potential future deals, with some suggesting that Apple could acquire ESPN from Disney. Such a deal, though costly (estimated at $50 billion), would give Apple access to valuable sports content, major TV rights, and enhanced cross-sell opportunities. It would also solidify Apple‘s presence in the global sports landscape.

Conclusion

Apple is making a concerted effort to capture the attention of sports enthusiasts by focusing on exclusive, global, and premium sports content. The company recognizes the importance of providing a high-quality streaming experience to differentiate itself from its competitors. With its successful MLS deal and potential bid for Formula One rights, Apple aims to attract and retain a loyal audience of sports fans. As the streaming industry continues to evolve, Apple‘s commitment to sports content highlights its determination to hold a prominent position in the market.