The Paywall Is Coming Down

Apple Inc. (AAPL) struck a massive 10-year, $2.5 billion deal for Major League Soccer rights back in 2022. Since then, the company has operated under a split model: some matches available to Apple TV subscribers, with the rest locked behind MLS Season Pass, an additional subscription costing $14.99 monthly (or $12.99 for existing Apple TV members). That created a combined monthly bill of $25.98 for fans wanting both services.

Now Apple is changing course. Starting next season, all MLS games will stream on Apple TV without any additional paywall. It's a straightforward play to boost subscriber numbers by removing friction, and the timing couldn't be better.

"We're thrilled to bring MLS to more fans around the world next season on Apple TV," said Apple senior vice president of services Eddy Cue. "Every match, all in one place, alongside incredible Apple Originals – it's a win for fans everywhere."

Next year shapes up as potentially huge for soccer in America. The U.S. will co-host the 2026 FIFA World Cup, and MLS typically sees significant interest spikes during World Cup years. Apple seems to be positioning itself to ride that wave.

Live Sports as the Growth Engine

The MLS announcement arrives on the heels of another major sports acquisition. Apple recently secured exclusive U.S. broadcasting rights for Formula One (FWONA) (FWONK) starting with the 2026 season. That five-year deal saw Apple outbid several competitors, including current rights holder ESPN.

The pattern is clear: Apple is building a live sports lineup to complement its original programming. And unlike its scripted content, live sports come with a built-in advertising opportunity.

Apple TV currently operates without an ad-supported tier, generating revenue purely from subscriptions—except during live sports broadcasts. While rumors have circulated about Apple launching an ad-supported plan, Cue downplayed that possibility in a recent interview with Screen International.

"Nothing at this time. Again, I don't want to say no forever, but there are no plans. If we can stay aggressive with our pricing, it's better for consumers not to get interrupted with ads," Cue explained.

But here's where it gets interesting: even without an ad-supported subscription tier, Apple can still sell advertising during live MLS matches and Formula 1 races. The revised MLS structure potentially opens up more advertising inventory during games, creating a new revenue stream without compromising the ad-free experience for scripted content.

The Path to Profitability

Cue declined to share specific subscriber numbers during his interview, though he indicated the platform is hitting record metrics: "I can tell you we're growing faster, we have more viewers and they have more viewing hours in the past year than we've had at any time."

Apple raised Apple TV pricing from $9.99 to $12.99 monthly in late 2023, marking the first increase since the platform's early days. Deepwater Asset Management Managing Partner Gene Munster called the price bump a "small example of a big opportunity" for the tech giant.

Munster estimated the price increase alone could generate $430 million in high-margin revenue for Apple's streaming division. That matters because Apple TV currently loses an estimated $1 billion annually, largely due to big-budget theatrical releases that underperform at the box office.

The company appears to be pursuing a two-pronged approach: raise prices while managing content costs more carefully. Live sports fits perfectly into this strategy—it delivers consistent viewer engagement without the unpredictable economics of blockbuster film production.

"I believe Apple's intent is to gradually close the gap between Apple TV+ expenses and revenue, turning what has been a negative-margin venture into a profitable one over time," Munster noted.

With Formula One and MLS both launching under the new structure in 2026, we'll get a clearer picture of whether Apple's sports-driven streaming strategy can actually move the profitability needle.

Stock Movement

Apple stock traded up 0.5% to $274.32 on Friday, within its 52-week range of $169.21 to $277.32. Shares have gained 12.5% year-to-date in 2025.