Rumors: Twitter and Apple Make a DealDate Published: 2016-08-14
Author: Ophir Gottlieb
Mike Isaac of The New York Times has just reported that Twitter (NYSE:TWTR) and Apple (NASDAQ) will be teaming up to put the NFL on the Apple TV using the Twitter app.
Twitter has signed a plethora of live streaming deals, most focused on sports, and most famously with the NFL, in which Twitter beat out several rivals to gain streaming rights. While the investing world is holding its breath (or its nose) in anticipation of the results for Twitter , it turns out one other company, Apple (NASDAQ:AAPL), has sided with Twitter. Here's what the NYT reported:
This simple snapshot reminds us of why this matters:
WHAT'S REALLY HAPPENING
Twitter won the NFL from the other competitors for several reason, some of which were made public, like the NFL saying out loud that Twitter was the place for live streaming events. Others were less public, but widely referenced.
Specifically, as the NYT article repeats, Facebook (NASDAQ:FB) reportedly tried to impose its will on the NFL, setting much harsher advertising terms that allowed Facebook to sell all the ads that would air during the games, which explicitly sliced out any coordinated sales effort between the NFL and Facebook. Of course, this story has been attributed to "two people who asked for anonymity because the discussions were private."
That tone, however, has become pervasive, as Twitter (NYSE:TWTR) now owns the rights to either live streaming of games or content for the NBA, NHL, MLB, MLB as well as a bevy of collegiate athletics and Wimbledon and the English Premier League.
All of this has been known, at some level or another.
But what is not known is if this new direction for Twitter will in fact work. Wall Street has been rather mum on the subject of the success of the NFL's prior streaming attempts, including the success the NFL had with Yahoo!, which garnered more than ten million viewers.
TWITTER HAS MORE
Although we won't cover it in this dossier, Twitter , contrary to popular opinion, does in fact have the eyes of the younger generations. The NYT reported that "about 72 percent of the social media service's user base is 18 to 34 years old, according to third-party data and company models, said two people who asked for anonymity because Twitter's internal metrics were confidential."
If the Twitter (NYSE:TWTR) deal with Apple (NASDAQ:AAPL) is in fact true, that means the mobile centric Twitter will have another avenue to reach users -- the Apple TV. The revolution of online advertising is coming, it will be larger than anything the advertising world has ever seen, and it's an open war for the market, with Google's YouTube the current leader, but Twitter making a fierce run at the competition. With Apple Inc by its side, the living streaming sports part of Twitter's strategy looks a lot stronger.
The author is long shares of both Twitter (NYSE:TWTR) and Apple (NASDAQ:AAPL).
WHY THIS MATTERS
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