Tactical Investment – Apple TV’s Deal with the MLS
The streaming wars are in full force right now; HBO Max rebranded to Max, Netflix and Hulu have introduced plans with ads, and YouTube TV got exclusive access to the NFL Sunday Ticket. Streaming services are rapidly implementing new business strategies to inch ahead in what is one of the most competitive industries in the world, including things like improving the quality of content.
Many heads turned when Apple TV made the bold decision to join forces with Major League Soccer in a ten year, $2.5 billion deal that gave them exclusive rights to stream MLS games via their MLS League Pass, which requires a subscription. The MLS is still growing as a league, making this a risky investment, and fans originally voiced displeasure due to changes made to the season because of the deal, including the new Leagues Cup.
Fast forward a few months later, and it looks like that investment is paying off big-time. Just last month, the MLS received the best news in its league history as Lionel Messi, the greatest player of all time, opted to join Inter Miami FC in one of the largest deals in history. Messi has not failed to entertain during his tenure, scoring 7 goals in 4 League Cup matches to take the team to the quarter finals. Coming with Messi is a foreign audience that is now being exposed to the MLS, while also bringing in new fans from the United States who have been captivated by his play. This is paying extreme dividends as Apple said Messi’s arrival has led to viewership records being shattered, while also allowing them to surpass one million subscribers for the MLS League Pass, something that Tim Cook noted in Apple’s earnings report last week. The Messi train is not slowing down anytime soon, creating a bright future not just for the league but for Apple and the other sponsors.
Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.