Back to top

Image: Bigstock

Apple (AAPL) May Have Won Rights to NFL Sunday Ticket Games

Read MoreHide Full Article

Apple (AAPL - Free Report) is rumored to have won the rights to the Sunday Ticket games of the NFL.

NFL Sunday Ticket, which is an out-of-market sports package, broadcasts regular NFL games every week. The broadcasting rights to the same currently belong to DirectTV. DirectTV sells packages ranging from $290-$400 per season.

The rumored rights acquisition is in sync with Apple's plans to bring live sports to Apple TV+ in order to attract new subscribers to the platform.

Earlier this month, Apple officially teamed up with MLB to bring Friday night baseball exclusively to Apple TV+ for $85 million annually.

However, the amount is much less than the $2.5 billion per year that Apple has to pay for acquiring the Sunday Ticket.

Apple Inc. Price and Consensus

Apple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

Live Sports to Boost Apple TV+ User Base

The recent rights acquisition is anticipated to attract customers to Apple TV+ amid stiff competition in the streaming space.

Per a Seeking Alpha report, Apple faced stiff competition from Disney's (DIS - Free Report) ESPN in the bid to win rights to the Sunday ticket games of the NFL.

Disney's ESPN is already home to several live sporting events like the F1 race, La Liga, Bundesliga, UEFA Champions League and the NBA.

Apple TV+ recently created history at the 94th Academy Awards by winning its first-ever Oscar for CODA.

Apple's CODA went head-to-head with its primary streaming competitor Netflix's (NFLX - Free Report) The Power of Dog.

Netflix has been spending aggressively to build its original content portfolio and maintain its leading position in the streaming industry.

However, the Oscar recognition has raised awareness regarding Apple TV+. Along with the current plan to bring live sports to Apple TV+ with original content and movies, Apple is providing a unique service in the online streaming platform at a lower price than its competitors in the United States, which is expected to attract subscribers in the long haul.

Apple TV+'s expanding content portfolio that now includes live sports is expected to attract viewers. This is likely to drive Services revenues.

In the first quarter of fiscal 2022, services revenues grew 23.8% from the year-ago quarter to $19.52 billion and accounted for 15.7% of revenues.

Zacks Rank and Another Stock to Consider

Apple currently carries a Zacks Rank #2 (Buy). Its shares have decreased 7% in the year-to-date period compared with the Zacks Computer-Mini Computers industry and the Zacks Computer and Technology sector's decline of 6.4% and 18.2%, respectively.

While Apple is a good stock to buy, here is another stock worth considering for your portfolio. America Movil (AMX - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

AMX shares have returned 5.2% in the year-to-date period, compared with the Zacks Wireless Non-US industry's growth of 8%.

Published in