Apple Bids $150 Million for Formula 1 U.S. Streaming Rights

Formula 1 streaming rights battle heats up as Apple’s $150 million bid outpaces traditional broadcasters in U.S. sports market

Key Takeaways

• Apple offers $150 million annually for exclusive U.S. Formula 1 streaming rights starting in 2026, nearly double ESPN’s current $85 million deal
• ESPN unlikely to match Apple’s bid as Disney-owned network appears unwilling to engage in bidding war, positioning Apple as frontrunner
• Third major sports streaming deal for Apple following exclusive agreements with Major League Soccer and partial MLB rights, expanding tech giant’s live sports portfolio

Introduction

Apple positions itself to secure exclusive U.S. streaming rights for Formula 1 racing in a deal that signals the tech giant’s aggressive expansion into live sports content. The company has submitted a bid worth at least $150 million annually to stream F1 races starting in 2026, nearly doubling ESPN’s current arrangement with Liberty Media.

The potential acquisition represents Apple’s third major sports streaming deal and underscores the shifting dynamics in sports media rights. Tech companies now consistently outbid traditional broadcasters for premium content as they seek to attract subscribers and diversify their streaming platforms.

Key Developments

Apple’s bid emerged following reports from the Financial Times that the company was in active negotiations with Liberty Media for the U.S. rights. ESPN’s current deal, valued at approximately $85 million annually, expires after this F1 season.

The timing coincides with Apple’s successful “F1” movie starring Brad Pitt, which grossed over $300 million globally. This cross-promotion strategy demonstrates how Apple leverages original content to drive interest in adjacent live sports offerings.

Industry sources indicate that other potential bidders, including Netflix and Amazon, have shown limited enthusiasm in this round of negotiations. ESPN appears unwilling to match Apple’s aggressive offer, reflecting a strategic shift in Disney’s spending priorities.

Market Impact

The deal sets a new benchmark for F1 rights negotiations globally, with Apple’s offer representing a 76% increase over ESPN’s current payment. This escalation reflects both F1’s rising U.S. popularity and tech giants’ willingness to pay premium prices for exclusive content.

F1’s average U.S. viewership has grown to approximately 1.3 million per race, more than doubling from 2018 numbers. Netflix’s “Drive to Survive” docuseries, launched in 2019, significantly boosted the sport’s domestic appeal and viewer engagement.

For Liberty Media, F1’s parent company, the increased rights fee provides substantial revenue growth and validates the sport’s expanding commercial value in the lucrative U.S. market.

Strategic Insights

Apple’s approach demonstrates how tech companies transform into major sports broadcasters, leveraging their platforms, data capabilities, and global reach to disrupt traditional television models. The company’s financial strength allows it to outbid established media companies for premium content rights.

The deal highlights the growing importance of exclusive live sports as subscriber magnets for streaming services. As growth in original scripted content slows industry-wide, sports rights become increasingly essential for driving subscriptions and engagement.

ESPN’s reluctance to match Apple’s bid suggests traditional broadcasters face difficult choices about resource allocation as rights costs escalate. The network may be prioritizing spending on other sports properties or focusing on different strategic initiatives.

Expert Opinions and Data

Doug Perlman, CEO of Sports Media Advisors, observes a fundamental shift in sports broadcasting dynamics. “Not long ago people considered streamers as reach-challenged. Now they have become essential for reaching audiences, often international ones outside the pay TV universe,” he notes.

Dylan Byers from Puck confirms the deal’s likelihood, stating, “With ESPN unwilling to match Tim Cook and Eddy Cue’s offer, the U.S. rights to Formula One are almost certainly headed to Apple’s streamer.” Business Insider reports that Apple is the frontrunner in negotiations.

Industry analysts view Apple’s move as a bold escalation in streaming wars, positioning the company as a serious contender in live sports. Some caution that high spending on sports rights may not immediately translate into profits, especially given F1’s early-morning broadcast times in the U.S.

Conclusion

Apple’s aggressive bid for F1 streaming rights represents a watershed moment in sports media, demonstrating tech companies’ willingness to pay top dollar for global sports properties. The deal positions Apple to compete directly with traditional broadcasters while expanding its sports content portfolio beyond soccer and baseball.

The outcome establishes new pricing benchmarks for premium sports rights and signals that streaming platforms have evolved from industry challengers to essential partners for major sports leagues seeking broader audience reach.