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— Stephen Flanders

🏠 TECH

Apple Gets Sporty

The world’s most valuable company is doing something that they’ve never done before.

That company would be Apple, and that never-done-before activity would be sports.

It sounds completely out of left field (pun intended). Apple is a tech company that makes phones, laptops, and headsets, not a sports company. And no offense to Tim Cook, but he’s definitely no Michael Jordan.

But if you’ve been paying attention over the last year, you’ll know that this is for real:

• Apple signed a $85M/yr deal to broadcast Friday Night MLB and a $2.5B streaming deal with MLS in 2022, a deal that helped the MLS land the soccer GOAT Lionel Messi.

• They are attempting to land the streaming rights for English football soccer.

• And the same for Formula 1.

• And the College Football Playoffs.

• And the NBA.

For those keeping score (pun intended), Apple is either streaming or attempting to stream baseball, soccer, race car driving, football, and basketball. So basically every popular sport known to man.

But why the sudden jock turn? Well, the answer is simple: Apple TV+ subscriptions.

The streaming service is not profitable, because unless the name is Netflix or Hulu, no streaming service is profitable. It’s extremely expensive to churn out watchable original content, and it’s extremely difficult to keep subscribers even when you have watchable original content.

Sports could be the perfect answer. They don’t have to produce the content themselves, and people are very willing to pay to watch sports. Tapping this rabid market makes almost too much sense, and could differentiate Apple TV+ from the Netflix’s and Hulu’s of the world.

Maybe there will even be an Apple ESPN purchase soon.

The Big Picture: If you’re a sports fan, there’s a good chance you’re forking up some cash for an Apple TV subscription in the near future.

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