Apple Inc (NASDAQ:AAPL) is one of the smaller players in the streaming sector, but recent bets on live sports could be paying off for subscriber and advertising growth. A new change to its MLS soccer rights could help boost things even more.Apple Changes Soccer Rights PaywallApple gained rights to Major League Soccer games as part of a 10-year $2.5 billion deal back in 2022. The company currently offers some games to Apple TV subscribers, while the rest are behind an additional paywall called MLS Season Pas ...

Core Insights - Apple is acquiring exclusive broadcast rights to Formula One (F1) races in the U.S. for the next five years, aiming to enhance the appeal of Apple TV subscriptions and convert users into racing fans [2][3][4] - The deal is estimated to be around $140 million, significantly higher than ESPN's previous contract of approximately $90 million per season [7] - Apple plans to integrate F1 content across its suite of apps, including Apple News, Apple Maps, Apple Music, and Apple Fitness+, enhancing user engagement [8] Financial Implications - The financial terms of the deal suggest a strategic investment by Apple to capture a growing sports audience, reflecting a trend in the streaming industry where companies are willing to pay premium prices for exclusive rights [7] - The success of F1: The Movie, which grossed $293 million shortly after release, indicates a rising interest in F1 among U.S. viewers, potentially driving subscription growth for Apple TV [4][6] Market Positioning - This move follows Apple's previous sports deals, including a 10-year agreement for Major League Soccer and rights to Major League Baseball games, showcasing the company's commitment to expanding its sports streaming portfolio [9][10] - The acquisition of F1 rights aligns with Apple's strategy to tap into sports that are gaining traction in the U.S., as F1's popularity is on the rise, particularly after the success of the recent film [11]

Group 1 - Major League Soccer (MLS) is partnering with Electronic Arts (EA) to stream four MLS matches this season on EA Sports FC Mobile [1][3] - The first match will be available for free streaming on May 10, featuring a rematch between the Los Angeles Galaxy and New York Red Bulls, following the Galaxy's victory in the 2024 final [2] - All matches will be simulcast with Apple TV's MLS Season Pass, which holds exclusive media rights, and EA FC Mobile players will receive a free one-month trial of the Season Pass along with in-game currency [3] Group 2 - This partnership marks EA's first venture into live streaming sports, capitalizing on the growing audience for live sports across media platforms [4] - The collaboration comes after a challenging quarter for EA, attributed to the underperformance of its games, particularly the EA Sports FC franchise [4] - EA is set to report its next quarterly earnings on Tuesday, which may provide further insights into the impact of this partnership on its financial performance [4]

Core Insights - Apple executives are closely examining the costs associated with Apple TV+, which is currently the only unprofitable segment of Apple's services business, losing over $1 billion annually despite having around 45 million subscribers [1][2] Group 1: Financial Performance - Apple TV+ was projected to incur losses between $15 billion to $20 billion in its first decade, which is typical for new streaming services [2] - The services sector has generated nearly $100 billion in revenue over the past year, with a 14% year-over-year increase in the fourth quarter [3][4] - Apple trimmed approximately $500 million from the $5 billion annual budget for Apple TV+ content last year as part of cost scrutiny [2] Group 2: Subscriber Growth and Engagement - The company reported over 1 billion subscriptions across its services, including Apple TV+ and iCloud, with paid subscriptions growing at a double-digit rate [3][4] - Apple TV+ has been recognized for its rapid release of original content and award nominations since its launch on November 1, 2019 [5] Group 3: Market Expansion - In February, Apple made the Apple TV app available on Android devices, expanding its reach beyond Apple’s ecosystem to include Android users [4][6]