Apple TV+ Is Looking Into Streaming More Live Sports
It has been reported that Apple TV+ is interested in acquiring the media rights to Pac-12 sporting events. The current rights agreement expires in 2023-24. Pac-12 is the only Power 5 conference without a media rights deal beyond next season. Besides Apple TV+, ESPN and Fox Sports are other potential landing spots for the Pac-12. Both networks had televised Pac-12 games and let their exclusive negotiation window expire last October. It has also been reported that Amazon Prime Video has expressed interest.
One reason for the lukewarm response was the decision by football (and basketball) powerhouses UCLA and the University of Southern California to leave the Pac-12 for the Big-10 beginning in August 2024. Also, both schools are located in Los Angeles, the second largest TV market in the country. It’s unknown if the remaining schools in the Pac-12 would be interested in moving from a TV to a streaming rights deal. Currently, the cost of Pac-12 sports on ESPN and Fox is $250 million annually over 12 years.
Recently, Apple TV+ has shown interest in streaming live sports. Last season, Apple TV+ began exclusively streaming an MLB doubleheader every Friday, which will continue next month. Last month, Apple TV+ began exclusively live streaming MLS games under a ten-year, $2.5 billion global agreement. MLS Season Pass is $99 for non-Apple TV subscribers and $79 for Apple TV+ subscribers. MLS will produce every game. Likewise, the Pac-12 Network, a cable network, could help produce games with Apple TV+.
Additionally, it was reported that Apple TV+ has also bid for the rights to the NFL’s Sunday ticket. While the package to stream out-of-print NFL games was at one point the front runner in negotiations, YouTube ended it up in a seven-year deal at a cost of $2 billion a year.
Speculation about Apple’s interest in streaming Pac-12 games comes at a time when the other Power 5 college conferences have finalized long-term media rights deals for the next decade. Here is the status of current and upcoming media rights deals.
In December 2020, ESPN inked a ten-year deal with the Southeast Conference. The deal begins with the 2024 football season. ESPN will have exclusive rights to SEC football replacing CBS. Marquee matchups will be televised late Saturday afternoon or prime time on ABC, ABC will also televise December’s SEC championship game. Other conference games will air on ESPN2, ESPNU, SEC Network and ESPN+ will stream matchups outside of the conference.
With the new agreement, ESPN will pay $300 million annually in a ten-year, $3 billion deal that expires in 2034. CBS, which has televised SEC games since 1996, paid $55 million each year and picked the top game to televise each weekend. The SEC, a football powerhouse for years, will become even more competitive with the addition of the “Red River Rivalry” schools in Texas and Oklahoma in 2024, expanding the conference to 16 schools.
The new media agreement with the Big 10 The conference begins in fall 2023. For the next seven seasons, Fox, CBS and NBC combined will pay over $1 billion in media rights each year. Therefore, three Big 10 football games are televised every Saturday. Beginning with Fox (kicking noon ET), followed by CBS (kicking 3:30 p.m. ET) and then NBC (kicking 7:30 p.m. ET). Other games will be available on Cable’s FS1, Big Ten Network and streamed on Peacock. With the addition of UCLA and Southern California, the Big Ten will also have 16 schools. The Big Ten’s expiring six-year deal with Fox and Disney costs $440 million a year.
In October 2022 the Big 12 Conference announced a new media rights agreement with incumbent operators ESPN and Fox. The new six-year deal is valued at $2.28 billion at an average annual cost of $380 million. Under the current 13-year deal, which expires in 2025, ESPN and Fox jointly paid $200 million to the conference each year. The new agreement runs through the 2031 school year. With the departure of Texas and Oklahoma, the Big-12 added Brigham Young, Central Florida, Cincinnati and Houston beginning in July. This will increase the conference to 14 members.
The present media rights of Acc expires in 2035. Under the terms of the agreement, Disney will broadcast games on ABC, ESPN, ESPN2 and ESPNU for $240 million annually. Other games are available on the ACC network.
While these media rights negotiations cover a range of collegiate sports, said Jeff Nelson, Navigate’s president United States today, “The rule of thumb is that football brought in 80-85% of the rights. It’s 85-90% now.” Nelson continues, “Given the way football produces viewership, it’s more important to have football rights.” Another added value of college football is the expansion of the college football playoffs from four schools to 12 starting in 2024-25.
As Apple TV+ dives into live streaming sports with its natural commercial breaks, The information reported that they hired Lauren Fry, a director of television and streaming video advertising, to introduce an ad-supported tier. Lauren Fry was Simulmedia’s chief revenue officer and previously worked in the advertising sales department at AT&TT and ComcastCMCSA. Unlike most streaming competitors, Apple TV+ doesn’t currently have an advertising tier.
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