From "Why an Apple-NFL Sunday Ticket marriage didn’t come together" posted Wednesday in The Athletic:
The NFL longed to be in business with arguably the globe’s most important company and spent much of the past year trying to make that happen. And the deal seemed like a natural for Apple, which is trying to grow Apple TV Plus...
But several weeks ago the media talks broke down. Why?
There are some obvious answers. Apple reportedly wanted to pay less than the NFL sought so it could offer the product at lower prices than incumbent DirecTV, but the NFL’s contracts with Fox and CBS disallowed that (lower Sunday Ticket prices could drive viewers away from the Sunday afternoon network windows). DirecTV’s Sunday Ticket offerings start at around $300 for a season.
“The other tech companies are far more advanced in where they are with their business model for media, for broadcasting,” said a person close to the NFL. “Apple is very far along in media with music but the other firms that are, you know, Amazon is much further along. Google and YouTube are much further along. Apple is really behind.”
Apple and the NFL also could not agree on whether the company would get the right to distribute Sunday Ticket on as yet non-existent platforms. Apple is heavily investing in virtual reality and augmented reality, nascent platforms in which sports are so far largely not viewed. As a result, Apple wanted what is dubbed known and unknown rights, individuals familiar with the NFL and Apple said. In other words, there is no known virtual reality market for Sunday Ticket, but there might be one day.
Imagine a virtual reality device offering fans a Sunday Ticket experience where it is as if they are viewing from the 50-yard line seats, said Tom Richardson, senior vice president of Mercury Intermedia and an adjunct professor at Columbia University’s sports management program. Such a platform might seem a long way off, but Richardson said it could be coming in the next 24 months...
Richardson in the 1990s worked for the NFL and NHL, and recalled similar situations arising in the emerging new digital world when companies asked if the media rights getting negotiated were good to be shown on “everything.” And, like now, the answer was no.
“The league doesn’t like to compromise and Apple as a two-and-a-half-trillion-dollar company, whatever they are now, they obviously kind of have their own way of doing business.”
My take: In other words, Eddy Cue fumbled it. And as we know, Google got the deal.
Maybe they should go for professional wrestling? Don’t they have more viewers (not me)?
The allure of sports on virtual reality is interesting. Does the present contract include AR/VR rights as a carve out? If Apple introduces the AR/VR hardware next year, is it something that they can buy into the contract to provide AR/VR services, or maybe, even better, be paid to provide those services if there is the software to take advantage of it in certain sports?
New Jersey started earlier so online gambling using apps is more widespread. Financially devastating to most individuals though those that network and follow individual athletes do win big at times.
A little like investing, huh? Same exact crowd started Robinhood or Schwab accounts in early 2020, bet on meme stocks, crypto, and now NFC running backs.
Apple will likely be in a position to offer the best (only?) fully-immersive AR experience for any live event be it sports, music or travel. The NFL will be back in the picture as soon as Cupertino announces their new helmet/headgear, the latest in AR wearables.
Neuroscientists exploring a bloodstream with nanobot cameras need a decent viewer too. I’m sticking with AAPL.
I’m getting tired of this meme. Cue gets way to much credit when a negotiation isn’t successful. He is not a loose cannon, out doing what HE thinks is best for Apple. Cue operates at the direction of Tim Cook and the Executive Committee.
In every case that a negotiation failed, it was because APPLE LEADERSHIP said NO.
Negotiations continue as long as there is progress being made. When progress ceases and the divide is to great negotiations cease, but only after conferring with leadership.
Failure to get Sunday ticket at the price and terms Apple leadership was willing to abide by is not a failure on anybody’s part. It just means the buyer and seller couldn’t agree on price and terms.
Apple and Google weren’t the only bidders. There were other bidders, who also said No. You only hear about Apple saying no, because Apple stories generate eyeballs, whereas the other firms do not.
YouTube, Disney and Amazon don’t generate eyeballs? News too me. Maybe we don’t read the same publications.
“Apple will invest in content, but not on disadvantageous terms and conditions.”
It’s important to remember that the same goes for media. They also will not agree to terms and conditions disadvantageous to them It took Eddie a decade before Eddie could get them to yes.
“Apple strikes fear of a loss of control “. Theres a reason for that. Apple wants total control. They’ve shown that with book publishers and newspaper and magazine media. Video are all interconnected with these companies and dont want to follow. Thats why it took years and finally some flexability on Apple’s part to finally be able to make deals. That and a whole packet of money.
As Robert said: “Apple will invest in content, but not on disadvantageous terms and conditions.”
“the NFL will be knocking on the door of Apple once their AR glasses are released”
And when will that be?
Since it is the holiday season, and I certainly don’t want Santa to put me onto the “naughty” list at this late date, then for the sake of Rudolph and the rest of the reindeer, I’ll use their regular introductions of: Mark Gurman or Ming-Chi Kuo.
Exactly. Do we all agree that Apple has the cash to beat Google’s $$ bid? If that’s true, and I believe it is, then the sticking point is the terms. Who knows, Apple’s monetary bid may have been higher than Google’s and the NFL went with the bid that offered terms more to the NFL’s liking.
“They’re not making money on this — this is a loss leader,” Michael Pachter, managing director of equity research at Wedbush, told Yahoo Finance Live..”
A $2 Billion Loss Leader has to be a record!