Apple Drops The MLS Paywall — And Its Streaming Strategy Suddenly Makes A Lot More Sense

Core Insights - Apple Inc is making strategic moves in the streaming sector, particularly with live sports, which could enhance subscriber and advertising growth [1][4] Streaming Rights and Changes - Apple secured Major League Soccer (MLS) rights in a 10-year deal worth $2.5 billion, offering some games on Apple TV while others are behind a paywall called MLS Season Pass, priced at $14.99 per month or $12.99 for Apple TV subscribers [2] - The company will now provide all MLS games on Apple TV without the additional paywall, potentially increasing subscriber numbers significantly [3] Upcoming Events and Market Impact - The timing of the rights change aligns with the 2026 FIFA World Cup, which is expected to boost interest in MLS, as the U.S. is one of the host countries [3] - Apple also acquired U.S. rights to Formula One starting in the 2026 season, enhancing its live sports offerings [4] Financial Performance and Strategy - Apple TV currently generates revenue solely from subscriptions, with no ad-supported plan in the immediate future, although there may be more ads during live sports events [5][6] - The recent price increase for Apple TV from $9.99 to $12.99 could generate an estimated additional $430 million in high-margin revenue for the streaming segment [6][8] - Apple is reportedly losing around $1 billion annually on Apple TV, but aims to close the gap between expenses and revenue to achieve profitability over time [8] Stock Performance - Apple stock has seen a 0.5% increase to $274.32, with a year-to-date rise of 12.5% in 2025 [9]