Apple and Formula 1 have finalized a landmark five-year media rights agreement that will see Apple TV exclusively stream every Formula 1 race in the United States starting in 2026. This comprehensive deal includes all race events such as practice sessions, qualifying rounds, and Sprint races. Subscribers to Apple TV’s existing $12.99 monthly plan will gain access to the full slate of Formula 1 content without advertisements. Additionally, select races and all practice sessions will be freely accessible via the Apple TV app throughout the season.
Financial Terms and Market Context
Sources familiar with the agreement estimate Apple is investing approximately $140 million annually for these media rights. This figure notably exceeds the previous arrangement with Disney’s ESPN, which reportedly paid around $85 million per year on average.
“We are incredibly proud of what we and Formula 1 accomplished together in the United States and look forward to a strong finish in this final season,” ESPN said in a statement, wishing F1 success in its new partnership.
Subscription Model and Content Access
Unlike Apple’s arrangement with Major League Soccer, which requires an additional fee via the MLS Season Pass, Formula 1 content will be included within the standard Apple TV subscription. The league’s proprietary F1 TV Premium service will remain available in the U.S., but access will now be bundled with Apple TV subscriptions rather than offered standalone. Commentary for the broadcasts will feature talent from both F1 TV and Sky Sports, enhancing the viewing experience with expert analysis and insights.
Apple’s Approach to Live Sports Streaming
Apple’s Senior Vice President of Services, Eddy Cue, emphasized the company’s selective approach to live sports, focusing on partnerships where Apple can control and innovate the user experience. Speaking at Motorsport Network’s Autosport Business Exchange NYC, Cue stated, “We don’t have to do sports the way that they are. There’s plenty of people doing that, so the world doesn’t need us to do that. And so our view around it is, if we can do something unique, then we’ll do it.” Apple plans to unveil further production enhancements and new features tailored for Formula 1 fans in the coming months, signaling a commitment to elevating the sport’s digital presence.
Building on a Growing Relationship
This agreement follows Apple’s involvement in “F1: The Movie,” starring Brad Pitt, which became the highest-grossing sports film ever at the box office this year. Stefano Domenicali, Formula 1’s President and CEO, described the partnership as “incredibly exciting” and a key driver to maximize growth potential in the U.S. market.
FinOracleAI — Market View
Apple’s acquisition of exclusive Formula 1 streaming rights represents a strategic move to deepen its footprint in live sports broadcasting, leveraging its subscription platform to drive user engagement and revenue growth. The higher annual payment underscores the value of premium sports content in attracting and retaining subscribers in a competitive streaming landscape.
- Opportunities: Enhanced subscriber growth through exclusive sports content; potential to innovate the sports viewing experience; cross-promotion with other Apple services.
- Risks: High annual rights fees may pressure profitability; competition from established sports broadcasters; dependency on Formula 1’s U.S. popularity growth.
- Market Impact: Likely positive for Apple’s services segment; pressure on traditional sports networks like ESPN.
Impact: This deal positions Apple TV as a major player in live sports streaming, potentially reshaping U.S. sports media consumption and intensifying competition in the sector.
