NFL considers Apple TV+ as a host for Sunday Ticket streaming
Yahoo Finance sports reporter Josh Schafer joins the Live show to discuss the streaming services the NFL is considering to host their Sunday Ticket streaming package, as well as soccer streaming rights.
Video Transcript
- All right, an absolute game changer in the streaming wars as Apple looks like the likely destination for NFL Sunday Ticket at an eye-popping price. Josh Schafer here with the latest on that. Josh, it was Amazon, it was Apple, it was what we believe Disney Plus slash ESPN.
JOSH SCHAFER: Right.
- But when cash is king, Apple rules.
JOSH SCHAFER: Apple normally is going to win that race, right? And it seems like that's where they are right now. We've had analysts tell us in the past that they're in the winner's circle. A report coming out earlier this week that says that it's likely Apple. Now all of these reports noting there's no deal signed but that they probably are the most likely candidate. It sounds like there were some conversations at the Sun Valley Conference and that's sort of what expedited this. And it seems like Apple's in the winner's circle at close to $3 billion, Dave. It's a huge number. It's a huge--
- Massive.
JOSH SCHAFER: Triple what DirecTV is currently paying for NFL Sunday Ticket. So we're talking about a big, big payday. But when we think about Apple and we think about all the different things Apple does, an analyst was quick to tell us earlier this morning, you know, it's still not really that big of a deal for the stock. It's not going to be a big impact on what Apple is doing.
It's exciting to talk about Apple coming into sports and what that means for the sports world. But when we think about Apple and we think about a $3 trillion company, I wouldn't be going and buying Apple stock because they're getting into the NFL--
- Yes.
JOSH SCHAFER: --is sort of what these analysts are saying.
RACHELLE AKUFFO: And, Josh, when we talk about bidding on some of these streaming rights and things, I want to turn to soccer, or football, my first love. Talk about what's been happening with the UEFA Champions League and the bidding that we're seeing there for those rights.
JOSH SCHAFER: Yeah, Rachelle. I mean, that was something that was pointed out this morning too. In America, we love to talk about the NFL. It is huge, and football is huge. But American football is not really the biggest sport in the world. It's soccer. And when we talk about the Champions League, it looks like these rights are going to be at about $2 billion for a six-year deal.
And the companies that are involved in this are a wide range of the streamers we've seen in the past. Apple. Amazon. Amazon already has these rights overseas, so we should note that. And you look at the board there, you've got Disney, Warner Brothers Discovery, Comcast, which has Peacock, which has the English Premier League, so a soccer tie there. Would be interesting too, guys, to go back to Apple if Apple were to get this because they do have the MLS already, right? So maybe they can kind of corner the American soccer fan in some ways if you have MLS, which has a growing fanbase we can say.
- Small, but growing.
JOSH SCHAFER: Champions League, huge fanbase.
SEANA SMITH: Yeah, well, Apple certainly has an edge, like Dave was saying, because they have so much cash on hand. But when we're talking about the sports rights, they're very, very expensive. And today, we got some news from Disney. ESPN+ is actually going to be raising its prices pretty substantially, what, $6.99 to $9.99.
JOSH SCHAFER: $9.99, Seana. $9.99.
SEANA SMITH: Who's going to pay that?
JOSH SCHAFER: It's up 43%. And you mentioned the cost, and that's exactly what Disney pointed out in their earnings last quarter. They lost almost-- their operating loss was up to a billion dollars, pretty much, in direct to consumer. And when they talked about what they lost at ESPN+, they cited higher sports programming costs. They're paying a lot to get these leagues and get teams on air.
Now what their argument here is they are getting more things on air, right? We saw them add the NHL this year. They've had more PGA content. And they're adding certain sports teams. So that's their argument to sort of grow this. And I think eventually the plan is, so they've said, it's going to be an a la carte kind of product where you can just get ESPN+. If you're a sports fan, that's all you're going to need, and you won't need cable. I'm going to guess it's going to cost more than $9.99 if they get there.
- But now you're factoring it in right next to Netflix and the other streamers.
JOSH SCHAFER: The same price.
- That's a tough--
JOSH SCHAFER: The same entry price--
- --sell.
JOSH SCHAFER: --for Netflix at $9.99.
- Right. With, what, a tenth of the content? That is a tough sell for even sports fans--
JOSH SCHAFER: You're probably not showing your--
- --like us.
JOSH SCHAFER: --little kid something on ESPN+, right? It doesn't get you the same value.
- All right, Josh Schafer, good stuff. Thank you.
