Should Apple go all-in for Formula 1 rights?
Should Apple go all-in for Formula 1 rights?
Apple TV+ could be an ideal fit for F1, but there are also compelling reasons for the racing league to look elsewhere.
Formula 1 is on the hunt for a new home. The racing league will air its events on ESPN platforms until the end of the 2025 season, at which point it will need a new broadcast partner. As reported by Sports Business Journal, Julia Alexander of Puck News has laid out a compelling case for why Apple and its streamer Apple TV+ could be the ideal choice, but there are also a few reasons why the pairing might not be the best fit after all.
Key Details:
- Snyergizing: Apple’s release of a new F1-themed movie could go hand-in-hand with live races.
- Spare no expense: Apple could surely afford F1 rights with its deep pockets.
- Not big enough?: F1’s desire to grow its global audience could be left wanting with an Apple deal.
As Alexander points out, there are definite reasons that F1 and Apple TV+ would fit together. F1 races are the “type of splashy, sexy, global property that fits well with the streamer’s image,” and the driver-facing camera angles used in F1 events could be great marketing for Apple’s spatial camera technology, as it uses in the Vision Pro headset.
In addition, adding Formula 1 races to Apple TV+ would provide cross-promotional possibilities. Apple is releasing the Formula 1-themed movie “F1” starring Brad Pitt on June 27, and the movie will obviously land on Apple TV+ when it’s done in theaters. Having the movie available to promote incoming F1 races would be a big bonus for Apple.
There clearly wouldn’t be a problem paying for F1 rights, despite the league’s high asking price. According to recent reporting, Formula 1 and its parent company Liberty Media are seeking between $150 million and $190 million per year for the league’s rights, as much as double what it currently makes in its ESPN deal. But Apple’s market cap of $3 trillion would make it pretty easy to find common financial ground with F1.
Still, there are reasons for both sides to be cautious in moving forward. F1 wants to expand its global audience in its next rights deal, and while Apple TV+ does have a global presence, its relatively small subscriber base might not bring the viewers the racing league is seeking. Some Major League Soccer executives have recently gone on record saying that the exclusivity of their games on Apple’s MLS Season Pass has been a negative influence in terms of audience growth.
Then, there’s the recent report that Apple loses $1 billion every year on Apple TV+. Apple makes that money back from other segments of its company, and as discussed above, could easily afford F1 rights. But would it really want to throw good money after bad by spending on a sports property with a smaller domestic following for its streamer that’s already losing so much?
There are certainly pros to a partnership between Apple and F1, but there are undoubtedly cons to such a relationship as well. F1 has until the end of its current season to figure out who will be its next TV partner, and Apple will certainly be an outlet that receives consideration.
Apple TV
Apple TV (formerly known as Apple TV+) is a subscription video streaming service for $14.99 per month, offering a growing slate of original series, films, documentaries, and specials. Unlike other platforms that combine licensed titles with originals, Apple TV is built entirely around exclusive programming, making it the home of critically acclaimed hits such as “Ted Lasso,” “Severance,” “The Morning Show,” and “Silo.” Its lineup continues to expand with award-winning dramas, comedies, family-friendly shows, and blockbuster original films like “CODA,” which won the Academy Award for Best Picture.