Apple signs $700mn deal for US Formula 1 rights

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Apple has signed a $700mn deal to stream Formula 1 races in the US, as the iPhone maker joins Big Tech groups Amazon and Netflix in expanding further into screening live sport.

The two groups confirmed on Friday they had agreed a five-year partnership ahead of this weekend’s US Grand Prix in Austin. Apple will begin broadcasting F1 in 2026, replacing Disney-owned broadcaster ESPN in the US.

The deal is worth about $140mn a year, according to a person with knowledge of the matter, a significant increase on the around $85mn paid by ESPN. The Financial Times was the first to report the talks between Apple and F1.

F1 chief executive Stefano Domenicali said Apple will ensure F1 is “ready to get into more houses and more in the culture of the American fans” as well as helping the sport reach a younger generation of fans.

“It’s the perfect match to be hopefully as soon as possible socially relevant in a way that everyone can wake up and think about Formula 1, as you’re thinking about NFL or NBA or MLS,” Domenicali added.

The partnership comes as Apple chases the success of its hit movie based on the race car series as well as joining Big Tech rivals in stepping up a push to acquire big sports rights deals.

F1 starring Brad Pitt was the company’s first big box office success since moving into the business of making original content for its Apple TV+ streaming service. The film has made nearly $630mn at the box office to date.

It showcased Apple’s ability to promote the sport to new audiences, with the US a key target market for F1 and its owners Liberty Media.

Eddy Cue, senior vice-president of services at Apple, said the sport has an “exponentially huge” growth opportunity. “We started this with the movie, F1, which was Brad Pitt’s biggest movie of all time, it’s the biggest sports movie of all time, it was a huge blockbuster this year,” said Cue.

F1 races are averaging 1.4mn on ESPN channels this year, ahead of the US record of 1.21mn set in 2022, according to the broadcaster.

Apple has previously made moves into the live sports streaming, striking a deal with Major League Baseball in 2022 to broadcast games on Friday nights, as well as a broader deal with North America’s Major League Soccer.

Apple will screen F1 practice, qualifying, shorter “sprint” races and grand prix contests. Cue also pledged to “bring everything that Apple has to offer”, from its retail stores to all of its apps, including its sports app, podcasting, music, Apple TV, books and Apple News.

The F1 film, alongside Drive to Survive, a behind-the-scenes series on streaming company Netflix, has helped the sport win new fans and major US sponsors. The group has added Miami and Las Vegas to its race calendar in recent years, complementing its grand prix in Austin, Texas.

The F1 chief and Apple’s Cue have known each other for years. They are also linked by their ties to Ferrari. Domenicali previously worked for the Italian racing outfit, while Cue is a board member at the automaker that owns the F1 team.