According to people with knowledge of the matter, Apple is building an ad network for live television as part of a deal to stream Major League Soccer games next year. The company is holding discussions with advertising partners and MLS sponsors ahead of next February’s launch about broadcasting ads during football matches and related programs, lovers asked to remain anonymous because the discussions are private.
This move is part of a more active push by Apple into advertising. The company’s ad unit generates about $4 billion in revenue (about Rs 33,000) annually, but is looking to increase that to double-digit billions, Bloomberg News reported. That includes putting search ads in more apps, such as maps services, as early as next year.
The tech giant recently struck a 10-year deal to broadcast MLS games in a new subscription service, as well as the Apple TV+ streaming platform. The company will also stream part of the game for free to Apple TV app users.
Apple is planning to run ads at all three levels of partnership: dedicated plans, paid TV+ subscriptions, and free TV apps. The move represents an expansion of the company’s original live TV commercials, which included Major League baseball games already aired on TV+.
Apple declined to comment.
Apple considers ad revenue on MLS games, in addition to subscription fees, to be key to generating money from the MLS deal. The contract is estimated to be worth $250 million (approximately Rs 2,050) per season, or $2.5 billion (approximately Rs 20,500) over the next decade.
Todd Teresi, Apple’s vice president of advertising, is leading the expansion into MLS advertising. He recently oversaw the addition of more ad slots to the App Store, including one on the store’s front page.
It’s a controversial move for Apple, both because it prides itself on avoiding advertising overload and because its recent privacy changes have slashed businesses’ marketing efforts. social media. The company said pushing its own ads was irrelevant.
The Cupertino, California-based company is also exploring bringing ads to additional apps and services. Apple has other apps with the same storefront as the App Store, including its podcast and book services. The company may also introduce an ad-supported version of TV+, following in the footsteps of Netflix and Disney.
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