Based on the sources, it claims that as part of the agreement to stream Major League Soccer matches next year, Apple is constructing an advertising network for live television, according to people with knowledge of the situation.
Apple Building Live TV Ad Network
Before the launch in February of next year, the company is in talks with advertisers and MLS sponsors about broadcasting commercials during soccer matches and related programming, according to the people, who asked to remain anonymous because the talks are private.
The action is a part of the company’s strong promotional effort. According to Bloomberg News, the company’s ad unit currently generates approximately $4 billion (about Rs. 33,000 crores) in income yearly but is aiming to reach double-digit billions. That includes starting as early as next year to include search adverts in new apps, such as its maps service.
The tech giant has agreed to a 10-year arrangement to stream MLS matches on Apple TV+ and a new subscription service. The business will also provide Apple TV app users access to a part of games for free.
All three tiers of the partnership—the dedicated package, premium TV+ subscriptions, and the free TV app—will have advertising, according to Apple. The action is an expansion of the business’s initial live TV advertising, which is present during Major League Baseball games that are already broadcast on TV+.
Revenue from Advertisement
Apple believes that the secret to benefiting from the MLS arrangement will be the advertising revenue from MLS games, in addition to subscription costs. The expected cost of the contract is $2.5 billion (approximately Rs. 20,500 crores) over the next ten years, or $250 million (about Rs. 2,050 crores) every season.
The move into MLS commercials is being spearheaded by Todd Teresi, vice president of advertising platforms at Apple. Recently, he was in charge of expanding the App Store’s advertising options, which now include a spot on the outlet’s home page.
Apple’s decision is controversial because it historically took pride in not having too many ads and because its recent privacy reforms have hurt social media companies’ marketing campaigns. The business has claimed that its advertising drive is unrelated.
The Cupertino, California-based business is also looking into adding advertisements to other apps and services. Apple offers books and podcasts as well as other apps with storefronts resembling those of the App Store. The business might possibly release an advertisement-supported version of TV+, imitating Netflix and Disney.
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