Apple’s sea change: A brand like Pepsi makes sense as a sponsor for the halftime show. It has long associated itself with popular musical acts of the day, and consumers have come to expect noted CPG brands to sponsor major events. For Apple, it’s a different story.
- Apple has always tried to carve out a place in pop culture, but its sponsorship of major pop culture events has been sparse (it did sponsor the 2016 Met Gala to support the Apple Watch.)
- But now, the company is becoming less of a tech product brand and more of an entertainment service. Actually, “services” is the key word here; its revenue category of the same name, which includes Apple TV+, Apple Music, and Apple Arcade, has become its second-largest segment behind the iPhone.
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- But despite having highly acclaimed content offerings both on Apple TV+ and Apple Music, Apple TV has around 16 million subscribers, far below its similarly aged competitors.
Apple Music, on the other hand, has a tiny cultural imprint compared with the behemoth that is Spotify. Thanks to a vast audio library, cheap subscription costs, and intense personalization, Spotify has secured its place in pop culture and made 24/7 access to music a standard.
The big takeaway: With the Super Bowl deal, Apple has shown that it’s not willing to cede its place in music or pop culture to Spotify just yet. Apple may be testing the waters of a football contract with the event, but whether it strikes a deal or not, the NFL is looking to digital broadcasters for the future of its league.