According to persons familiar with the situation who have information of the topic, Apple Inc. is in the process of establishing an advertising network for live television as part of its arrangement to broadcast Major League Soccer games in the next year.
The firm is conducting negotiations with advertising partners and MLS sponsors ahead of the debut next February about the showing of adverts during soccer games and associated programming, according to the sources. Because the discussions are confidential, the persons requested not to be named.
Apple is making this step as part of a more aggressive push into the advertising market. According to a report by Bloomberg News, the advertising division of the corporation brings in around $4 billion in yearly income but is working to grow this number to the double-digit billions of dollars. This includes the incorporation of search adverts into further applications, such as the company’s mapping service as early as next year.
The tech giant just reached an agreement to broadcast Major League Soccer matches for a new subscription service in addition to the Apple TV+ streaming platform. The contract is for ten years. Users of the Apple TV app will also have free access to live streaming of a select number of games from the firm.
Apple intends to display advertisements inside the specialised bundle, premium TV+ subscriptions, and the free TV app that are all a part of the relationship. This move is an extension of the company’s early live TV advertising, which is already featured in games of Major League Baseball that are shown on TV+.
Apple refused to respond.
Apple believes that the cash generated from advertising during Major League Soccer games, in addition to the subscription fees, will be the key to successfully making money from its partnership with MLS. It has been predicted that the deal would cost $250 million every season, which is equivalent to $2.5 billion over the next decade.
The move into MLS advertising is being spearheaded by Todd Teresi, who serves as Apple’s vice president of advertising platforms. He recently managed the installation of more advertising spots to the App Store, one of which is located on the outlet’s home page.
It is a controversial decision for Apple, not only because the company historically took great pleasure in its ability to avoid an excessive number of advertisements, but also because its recent privacy reforms have hampered the marketing efforts of social media companies. The corporation has said that there is no connection between the two situations.
The corporation, which has its headquarters in Cupertino, California, is investigating the possibility of adding advertisements to other applications and services. Apple’s podcasts and books are two examples of its other app categories that include storefronts quite similar to the App Store. Additionally, the business may launch a version of TV+ that is funded by advertisements, following in the footsteps of competitors such as Netflix Inc. and Walt Disney Co.