As an entertainment product, I think Apple TV+ is really on to something. The company has the budgets to create shows that big stars like Harrison Ford and Reese Witherspoon want to be a part of. It has movies like Coda that win Oscars and shows like Ted Lasso that become part of the cultural zeitgeist.
When it comes to Hollywood, Apple is in good shape. It may be a tech company, but it knows how to operate as a movie studio.
Can we say the same thing for sports?
Give credit where it is due. Apple TV+ is trying some cool stuff in the sports world. The company has the money and seemingly the desire to be a serious player in the sports rights market. I am just not sure they know the rules of the world they have entered.
Earlier this week, Eddie Cue, the SVP of services for Apple, told The Daily Mail that he wants to do deals that give Apple the rights to air events in multiple markets. It’s a grand ambition and bold vision. That is what Apple is known for, but will they find a partner that wants to do business that way?
“We’re a global company. We have customers in every country in the world,” Cue said. “And it’s not exciting for me to have something that you can have but you can’t have.”
Cue’s desire is understandable. Apple products can be found all over the globe, and if you have bought a new Apple product of any sort at some point in the last four years, you know that they all come with a trial subscription to Apple TV+. It would be great to tell buyers that they are all getting the same thing no matter where they live. It just isn’t realistic when it comes to sports rights.
The tech world may try and sell this as a bold vision. Writers and leaders will say any pushback from leagues used to dealing with traditional broadcasters is just proof of how far ahead of the game Apple is.
I would argue that the reality is that Cue’s stated goal is not only unrealistic, but it doesn’t really make business sense. If you want global broadcast rights to a sport, you are either going to have to commit to overpaying for every sport or accept that there is a very small pool that it makes sense to swim in.
Now, Apple is Apple. If Cue really wants to, he can say that the line to acquire NBA rights (as an example) forms behind him and starts at $7 billion. The coffers of big tech really are astounding.
But why would Apple want to do that? Basketball has global appeal, so maybe that is a bad example. If you pay tens of billions for global broadcast rights to Major League Baseball, can you ever really get your money’s worth? Does the league have enough appeal in Europe, Asia and Africa to justify paying a price based on coverage on all seven continents?
The company is kind of living through this right now with MLS. Soccer is growing in the US, and having the rights to the teams people can actually hop in their cars or on public transportation and go see is a good thing. But worldwide, MLS is barely a blip on the radar. Global Football Rankings ranks it the 16th best league in the world. The addition of Lionel Messi will surely draw some eyes in the short term, but who in England, Spain, Germany, and Italy, where the best leagues in the world are, is signing up for Apple TV+ because they get MLS games?
From a business standpoint, Apple has really painted itself in a corner. What sports and leagues can offer worldwide broadcast rights that make sense to shell out big money for?
As best I can tell, the list is limited to the four aforementioned European countries’ top soccer leagues, the NBA, Formula 1 racing, UFC, and tennis. Even golf doesn’t quite make the cut. You have to think about what sports have enough value everywhere. Even the low end of interest has to justify the price, because no matter what, if this is the path forward for Apple, it will always be paying based on the value of the sport to the market most passionate about it.
I like visionaries when they have something truly impressive to offer, and I have been impressed with streamers’ willingness to experiment with their game broadcasts. I want to see more of it.
If Eddie Cue can deliver a product worthy of his plan, regardless of what sport or league Apple sells to come aboard, I am all for it. Apple just has to accept that even finding out if this makes sense is going to cost multiple billions of dollars. If they want to pay it, awesome. Then all they have to do is not screw up the presentation of a sport or game that people all over the world love.
Demetri Ravanos is a columnist and features writer for Barrett Media. He is also the creator of The Sports Podcast Festival, and a previous host on the Chewing Clock and Media Noise podcasts. He occasionally fills in on stations across the Carolinas in addition to hosting Panthers and College Football podcasts. His radio resume includes stops at WAVH and WZEW in Mobile, AL, WBPT in Birmingham, AL and WBBB, WPTK and WDNC in Raleigh, NC.
You can find him on Twitter @DemetriRavanos or reach him by email at DemetriTheGreek@gmail.com.
