F1 Rumor: Apple in serious talks to takeover F1 broadcasts in USA (2nd Update)

Apple and Formula 1 are close to finalizing a major streaming rights deal, with an announcement anticipated at the U.S. Grand Prix in Austin, October 17-19, according to Puck’s John Ourand. The agreement, reportedly worth over $150 million annually, has been delayed by negotiations over the future of F1’s popular U.S. streaming service, F1.TV.

Apple is pushing for streaming exclusivity, which would require shutting down F1.TV in the U.S. However, F1.TV is profitable and cherished by dedicated fans, with minimal overlap with ESPN’s broader broadcast audience. This sticking point has prolonged discussions, and it remains unclear whether F1.TV will continue in the U.S. market.

ESPN’s U.S. broadcast rights for Formula 1 end after the 2025 season, paving the way for Apple to take over. The F1 package would likely be offered as an add-on via the Apple TV app, joining MLS Season Pass and MLB Friday Night Baseball.

For the last few years, F1 has been available to anyone in the US with a cable and satellite subscription thanks to the main ESPN channel, but from next season viewers may require, at the very least, an Apple TV+ subscription. Apple CEO Tim Cook is a big F1 fan, and the success of the fictional film starring Brad Pitt likely cemented Apple’s desire to ensure it snapped up the rights when they became available.

It’d be the latest move in a deeply fragmented sports streaming market in the United States. Apple TV+, Paramount+, Peacock, Amazon Prime, ESPN+ and others all hold down some exclusive rights to top sports beyond the what traditional cable and satellite channels offers as part of television bundles.

If all goes as planned, expect an official announcement later this month.

The Wall Street Journal reports that Apple has offered Formula One as much as $150 million a year for the U.S. rights to air its races and is the top contender to secure a deal, according to people familiar with the matter.

The bid puts F1 on track for a significantly more lucrative deal than it has with its current partner, Disney’s ESPN.

The downside? Inking a deal with Apple—which owns the Apple TV+ streaming service—would allow F1 to lock in a big payday but risks limiting the exposure the sport can get with a major brand like ESPN.

“ESPN isn’t planning to submit a counter offer, according to a person familiar with the matter says the Wall Street Journal. That person said the network is focused on fiscal responsibility and felt the price Formula One was seeking was too high.”

What isn’t clear in the reporting is if Apple will produce F1 races themselves – or, if like ESPN, it will simulcast the feed from the UK’s Sky Sports F1.

Adding the sport to Apple’s current stable of sports broadcasting rights is a natural progression after the popularity and success of the ‘F1’ movie starring Brad Pitt.

There are, of course, many questions about how Apple will stream F1. Presumably it will exist alongside Apple TV+ and MLS Season Pass as a separate streaming package.

It’s also unclear what the deal will mean for F1 TV. It’s possible, that Apple will obtain exclusive rights to F1 streaming in the USA, and therefore F1 TV will be blocked in the USA.

Following the success of “F1: The Movie,” Apple now wants to buy the streaming rights to Formula 1 itself, according to The Financial Times.

The company is now apparently in active talks to acquire the rights to stream Formula 1 in the United States. The move comes amid the success of “F1: The Movie,” which is Apple’s first major box office hit, earning over $300 million globally already.

Prior to the movie’s release, Citi analysts estimated that F1’s next U.S. broadcast deal could be worth $121 million per year. Last year, its total global media rights revenue increased by about 8% to nearly $1.1 billion.

Reportedly, F1 has yet to decide on its future broadcasting arrangements. Also, ESPN may retain the rights. However, ESPN’s exclusive negotiation window expired last year without a deal, opening the door for rival bidders to enter the race.

The move puts Apple in competition with Disney, which is Formula 1’s current American broadcaster, via its subsidiary ESPN. ESPN had exclusivity to negotiate a renewal deal without competition from other bidders until last year, and the process is now open to rivals.

Disney pays $85 million per year for the rights, and Formula 1 also charges fans directly for its own streaming service. Liberty Media, Formula 1’s U.S. owners, hope that the Apple Original Film and Netflix’s “Drive to Survive” documentary has increased the value of Formula 1.

Formula 1 viewership doubled from 554,000 to around 1.1 million in 2024, rising further to 1.3 million in the first 10 events this year (globally, over 80 million people watch each F1 race). The next U.S. Formula 1 streaming deal could now be worth in excess of $121 million a year—a considerable increase.

Apple moved into live sports streaming in 2022, and now streams Major League Baseball and Major League Soccer on Apple TV+, so adding Formula 1 to its portfolio is highly plausible. Following its run in theaters, “F1: the Movie” is expected to become available on ‌Apple TV‌+ later in 2025.

Apple has been attempting to capitalize on opportunities in the lucrative live sports streaming market. The company’s previous deals include a 2022 agreement with Major League Baseball to broadcast games on Friday nights and an arrangement with North America’s Major League Soccer.