Apple company (NASDAQ: AAPL) An attempt to broadcast midweek games in Major League Baseball shows that the tech giant’s exposure to live sports content will be a key factor in the success of the streaming service on Apple TV+, according to an analyst at Wedbush.
Apple Analyzer: analyzer Daniel Ives It maintained Outperform’s rating and $200 price target for Apple stock.
Apple thesis: Apple winning the MLB deal would be a “shot through the arc” for streaming rivals like Amazon.com Inc. (NASDAQ: AMZN) and Netflix Inc. (NASDAQ: NFLX) that file Tim CookIves said in a note that the company he’s leading is researching live sports content to drive future growth for Apple TV+.
With nearly $200 billion in cash on its balance sheet, the analyst believes Apple could bid on several upcoming sports packages — such as the NFL (Sunday Night Ticket) and NASCAR — that will be renewed in the coming years.
Ives noted that Apple TV+ will become a major monetization driver for the company over the coming years. The streaming service is estimated to have nearly 20 million paid subscribers and about 45 million global accounts.
SEE ALSO: Here’s Why Analyst Sees Rumored MLB Deal As ‘Perfect Opportunity’ for Apple
why does it matter: MLB The deal will mark Apple’s foray into live sports streaming and provide a massive content boost for Apple TV+. Apple launched its $5 per month subscription streaming service in 2019.
Apple rival Amazon’s live video streaming service has signed a ten-year deal to be the exclusive home of NFL “Friday Night Football,” starting in the 2022-23 season.
price movement: Apple shares closed down 1.9% in the regular trading session on Thursday at $172.19, and also fell less than 0.1% in the after-hours session to $172.07.
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