Apple is negotiating to get the US rights to broadcast Formula 1 as the internet giant expands its live sports programming and builds on the success of its popular film based on the racing car series.
Various media reports stated that when the broadcast deal opens up next year, the iPhone manufacturer plans to challenge Disney’s ESPN, the current American broadcaster of Formula 1.
Considering that Brad Pitt’s F1 is the company’s first major box office hit since it started producing original content for its Apple TV+ streaming service, demand is high.
Liberty Media, the US owners of Formula 1, hopes that by drawing in younger, female, and American viewers, the movie and Netflix’s Drive to Survive documentary series will have raised the value of the racing rights.
F1’s Box Office Collection
Apple’s highest-grossing film to date is F1, which has grossed approximately $300 million at the box office. This production marks a transition to mainstream spectacles following the commercial failures of Killers of the Flower Moon and Napoleon.
With a 2022 agreement with Major League Baseball to stream games on Friday nights and a more comprehensive agreement with Major League Soccer in North America, Apple has already ventured into the live sports streaming space.
The race car series’ current television partner, ESPN, brings in approximately about $85 million annually. Additionally, F1 charges viewers directly for live race streaming on its own streaming service in the United States.
Prior to the debut of the F1 movie, analysts at Citi had previously predicted that the next US broadcast deal for Formula One may be worth $121 million annually. In 2024, its overall revenue from media rights increased by nearly 8% to approximately $1.1 billion.
According to someone with intimate knowledge of the situation, F1 has not yet decided on its future broadcasting arrangements, and ESPN may still hold the rights.
Formula One is no Longer a Monopoly of ESPN
ESPN had a window of opportunity to negotiate a contract without having to contend with other bidders. But last year, that window closed without a contract, so competitors might now enter the market.
It is anticipated that other bidders would pursue the rights as well. Liberty Media prioritises the US market, and in recent years, it has expanded its race calendar to include Miami and Las Vegas in addition to its grand prix in Austin, Texas.
In 2026, Cadillac, a US brand supported by General Motors and billionaire financier Mark Walter’s TWG Motorsports, will become the eleventh team to compete.
From 554,000 viewers per race in 2018, the year after Liberty Media acquired Formula 1, to around 1.1 million in 2024, F1’s audience on ESPN has doubled. F1 saw an average of 1.3 million spectators over its first 10 events this year, with record attendance in Australia, China, Monaco, Spain, Canada, and Austria.
The $100 billion in services revenue that Apple generates annually, which includes goods like the App Store, iCloud, and Apple Pay, does not include money from Apple TV+ or its production division, Apple Studios.
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