Formula 1 and Apple deal is close to crossing the finish line
Formula 1 and Apple deal is close to crossing the finish line
The racing league is reportedly ‘poised’ to accept a nine-figure bid for its domestic rights from the tech giant.
Apple appears to be rounding the final turn in its pursuit of Formula 1 broadcasting rights in the United States. Business Insider reports that the company is “poised” to land the domestic rights to the racing circuit, luring them away from their current home of ESPN and potentially leading to a price increase for the Apple TV+ streaming service.
Key Details:
- Strong bid: Apple reportedly offered $150 million per year for F1 rights.
- Sacrificing reach: ESPN likely didn’t approach the Apple bid, but has significantly higher reach.
- Synergistic move: Apple is riding high after the success of the “F1” movie.
Apple has had reported interest in acquiring Formula 1 rights since 2023, but has been unable to land those rights thus far. Persistence appears to be paying off for the company, however, which was said to be in talks to acquire F1 broadcasts last week.
Puck reports that Apple offered $150 million per year to stream F1 races, a sizeable increase over the $80 to $90 million that ESPN is currently paying for the rights. It is not currently known how much ESPN bid to keep the rights, but one source told Front Office Sports that Apple’s offer was “far beyond” that of the Worldwide Leader in Sports.
However, during the last rights period, F1 reportedly opted to take less money with ESPN than from more streaming-focused offers, including Apple and Netflix. The thinking was that ESPN’s expansive reach would make up for the revenue differential. However, as traditional linear TV’s dominance in the industry continues to dissolve, the added benefit of ESPN’s cable presence has waned as well.
If F1 rights do end up on Apple TV+, it will be an interesting pairing, to say the least. The streamer doesn’t have anything near the reach that ESPN can boast, and is available in just 11% of homes according to data from MoffettNathanson in 2024. F1 races are drawing ratings of just 1.3 million viewers across ESPN platforms this season, so on its face, the deal doesn’t appear likely to add materially to the audience of either the racing circuit or Apple TV+.
However, Apple is hoping that the success of its new film “F1,” which hit theaters at the end of June, coupled with the racing rights, will help it become a must-have service for racing fans. The movie has been highly successful, having pulled in nearly $400 million at the global box office and becoming the highest-grossing film from Apple Studios thus far. But will that be enough to draw a sizable audience to F1 races on Apple’s streamer?
Time will tell, as it will with the question of whether or not Apple will choose to raise its streamer’s price thanks to the addition of more live sports rights. But it appears that F1’s days on ESPN are numbered, and that the racing league is ready to bolt for Apple once the 2025 season is over.
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.