rewrite this title Why FIFA’s search of ‘new deal’ for Club World Cup may be ‘bad news’ for Apple

Summarize this content to 500 words Apple’s reported billion dollar deal with FIFA to secure worldwide streaming rights for the Club World Cup tournament next year may have been scrapped. According to a report by New York Times-owned The Athletic, FIFA is searching for broadcasters for streaming the revamped FIFA Club World Cup in the Americas, Asia and the Middle East & North Africa regions.This means that the reported deal, which would have given Apple TV+ exclusive access to broadcast the month-long event featuring some of the biggest club teams from across the globe, is effectively ending. The expanded men’s Club World Cup is set to take place in the US from June 15 to July 13, 2025 and then in 2029.Through a newly-launched tender, FIFA is aiming to find multiple broadcasters to secure commitments for specific regions. The governing body said that this tender process will allow them “to select the entity, or entities, that are best placed to secure the required transmission and programming commitments on a global, regional, or territory-specific basis”. The deadline for submitting bids is August 20.Apple’s connection with Club World Cup streaming and problems for FIFAIn April, reports suggested Apple was close to securing a $1 billion global streaming deal for the Club World Cup, with an announcement anticipated soon. However, earlier this month, it was claimed that the deal had either collapsed or was more “proposed” than “deal” in the first place.It was previously claimed that the $1 billion amount is far less than the $4 billion FIFA had initially sought. This is because there weren’t many takers of the deal at that price, with a person familiar with the broadcast industry reportedly saying that a major US media company estimated the value of competition’s streaming rights in North America at around $30 million.Moreover, people familiar with the process told the publication that FIFA faced difficulties in enticing traditional broadcasters to invest heavily in the Club World Cup. Major names like NBC, the broadcaster of the English Premier League, and Fox Sports, which holds the FIFA World Cup rights, reportedly opted out of bidding.Secondly, with a deal providing global streaming rights via Apple TV+ would have aligned with Apple’s strategy of offering exclusive content to drive subscriptions for Apple TV+. However, this drew criticism from Ricardo Fort, a former head of global sponsorships at Visa, a FIFA partner. He argued that a global sporting event behind a subscription service may well serve fans in wealthier countries but it would be a barrier for many others. “For a global event, a great new tournament where they should be thinking about how to build interest and awareness around the world, a subscription-based product is not ideal, assuming the only access is by paying Apple,” Fort said. Notably, the company secured a $2.5 billion deal over a decade for exclusive global access to MLS in 2022.A single broadcaster approach stands in stark contrast to the traditional model favoured by major sporting events. Typically, broadcast rights are fragmented and sold across various markets to maximise reach and revenue. For instance, the Premier League has sold rights to 40 companies in 97 countries for the current cycle (2022-2025).

Source link