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Apple's (AAPL) TV App Becomes Exclusive Destination for MLS
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Apple (AAPL - Free Report) has yet added another feather to its long list of achievements via its streaming platform — Apple TV+. The company announced on Tuesday that Apple TV+ has won exclusive rights to broadcast Major League Soccer ("MLS") around the world starting from 2023.
Apple has already entered the live sports streaming space by gaining the rights to stream weekly Major League Baseball (MLB) games, including two Friday night games. With the recent partnership with MLS, Apple will further cement its position in the live streaming space primarily dominated by Disney (DIS - Free Report) .
Disney's ESPN is already home to several live sporting events like the F1 race, La Liga, Bundesliga, UEFA Champions League and the NBA.
Another major contender in the live sports streaming space is Amazon (AMZN - Free Report) , which is well ahead of Apple in this race.
Amazon signed a long term deal with the National Football League (NFL) that makes its streaming service — Prime Video — the exclusive broadcaster of Thursday Night Football, beginning with the 2022 season.
Apple has been expanding its genre base to attract viewers and win market share against Netflix (NFLX - Free Report) , which enjoys the leading position in the streaming industry.
Netflix has been spending aggressively to build its original content portfolio. However the company reported in its first quarter of 2022 earnings that it has lost customer base for the first time in a decade due to stiff competition.
Apple TV+ is offered at a lower price than its competitors in the United States. Apple TV+'s expanding content portfolio, which now includes live sports, is expected to attract viewers. This is likely to drive Services revenues.
How Does the Deal Impact Shareholders' Wealth Growth?
Apple shares have been hit negatively due to the ongoing COVID induced lockdowns in Shanghai, global supply chain disruptions and the Russia-Ukraine war.
Also due to rising inflation globally, customers have pulled back on their purchases. This has impacted Apple’s shares negatively.
However, Apple’s partnership with MLS has been penned for 10 years and is expected to drive Apple TV+’s adoption globally. MLS is growing exponentially, with the number of clubs participating doubling in size from 15 to 29 over the last 15 years.
The momentum is likely to continue as soccer is expected to grow in North America due to the 2026 FIFA World Cup being hosted jointly by the United States, Canada and Mexico. With a player pool spreading across 81 countries and a very young fan base, MLS will drive Apple TV+’s growth for the long haul.
Growing adoption of services like Apple TV+, Apple News+, Apple Card and Apple Fitness+ is expected to drive revenue growth in the third quarter.
In the second quarter of fiscal 2022, Apple’s Services revenues grew 17.3% from the year-ago quarter to $19.82 billion and accounted for 20.4% of sales.
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Apple's (AAPL) TV App Becomes Exclusive Destination for MLS
Apple (AAPL - Free Report) has yet added another feather to its long list of achievements via its streaming platform — Apple TV+. The company announced on Tuesday that Apple TV+ has won exclusive rights to broadcast Major League Soccer ("MLS") around the world starting from 2023.
Apple has already entered the live sports streaming space by gaining the rights to stream weekly Major League Baseball (MLB) games, including two Friday night games. With the recent partnership with MLS, Apple will further cement its position in the live streaming space primarily dominated by Disney (DIS - Free Report) .
Disney's ESPN is already home to several live sporting events like the F1 race, La Liga, Bundesliga, UEFA Champions League and the NBA.
Another major contender in the live sports streaming space is Amazon (AMZN - Free Report) , which is well ahead of Apple in this race.
Amazon signed a long term deal with the National Football League (NFL) that makes its streaming service — Prime Video — the exclusive broadcaster of Thursday Night Football, beginning with the 2022 season.
Apple has been expanding its genre base to attract viewers and win market share against Netflix (NFLX - Free Report) , which enjoys the leading position in the streaming industry.
Netflix has been spending aggressively to build its original content portfolio. However the company reported in its first quarter of 2022 earnings that it has lost customer base for the first time in a decade due to stiff competition.
Apple TV+ is offered at a lower price than its competitors in the United States. Apple TV+'s expanding content portfolio, which now includes live sports, is expected to attract viewers. This is likely to drive Services revenues.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
How Does the Deal Impact Shareholders' Wealth Growth?
Apple shares have been hit negatively due to the ongoing COVID induced lockdowns in Shanghai, global supply chain disruptions and the Russia-Ukraine war.
Also due to rising inflation globally, customers have pulled back on their purchases. This has impacted Apple’s shares negatively.
Apple, which currently carries Zacks Rank #3 (Hold), has seen its stock lose 25.2% in the year-to-date period compared with the Zacks Computer - Mini computers industry and Zacks Computer and Technology sector’s declines of 24.7% and 31.9%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Apple’s partnership with MLS has been penned for 10 years and is expected to drive Apple TV+’s adoption globally. MLS is growing exponentially, with the number of clubs participating doubling in size from 15 to 29 over the last 15 years.
The momentum is likely to continue as soccer is expected to grow in North America due to the 2026 FIFA World Cup being hosted jointly by the United States, Canada and Mexico. With a player pool spreading across 81 countries and a very young fan base, MLS will drive Apple TV+’s growth for the long haul.
Growing adoption of services like Apple TV+, Apple News+, Apple Card and Apple Fitness+ is expected to drive revenue growth in the third quarter.
In the second quarter of fiscal 2022, Apple’s Services revenues grew 17.3% from the year-ago quarter to $19.82 billion and accounted for 20.4% of sales.