TV News: Formula 1’s Apple TV Gamble Echoes NASCAR’s Costly TV Blunder (3rd Update)

Although Formula 1 is getting a reported $140 million per year from Apple with the new USA TV deal recently announced, vs. the reported $90 million per year it is currently getting from ESPN, it’s a net revenue gain of zero.

As it turns out, F1 will no longer make money with F1 TV subscriptions in the USA and that loss in revenue is said to be about $50 million per year, thus making the Apple TV deal look rotten.  Why? Because the loss of exposure on Apple TV (nowhere near as many people will be tuned in to watch each race) is a real F–U to all the F1 sponsors.

And with less TV exposure, new sponsors will be less inclined to enter the sport.

So why would Formula 1 be so stupid as to sign such a deal?

It is counting on Apple to come up with new innovative ways to deliver F1 content?

1. Apple may eventually hire their own TV personalities instead of using the Sky Sports British feed.
2. New camera views from onboard the cars
3. Live haptic feedback for viewers watching events on their iPhone would add a new dimension for the viewer
4. Reaching more younger viewers who do not watch linear TV but instead live on their iPhones all day long

As Eddie Cue said, “We have millions of customers. If you look at what we did with F1 in the movie, it gives you a little bit of a flavor of the kind of things we can do, from podcasts to even music.”

Liberty Media’s CEO Derek Chang said: “Over the arc of a five year deal, there are products here that we haven’t even begun to think about, right?  I’m sure there’s like 1000 junior engineers at Apple that woke up this morning and are like, ‘Oh, these are the things we can go now go do, right?’”

Apple is “about to announce” a $140M per year media rights deal with F1 for its U.S. rights, according to Alex Sherman of CNBC Sport. Sherman moderated a panel with Apple SVP/Services Eddy Cue at Autosport Business Exchange NYC, calling the discussion “a little bit awkward, because the deal hasn’t actually been announced yet.”

Sources said that the formal announcement “is coming very soon.” Cue said that his company would “like to buy more sports rights and would seek to change how broadcasts are done” — and he did not “really shy away from the imminent F1 rights deal.”

He said, “We do love F1.” Cue also said that Apple has so far “intentionally stayed away” from bidding on sports rights unless it can “buy the entire rights portfolio.” Sources said that Apple will be the “exclusive U.S. rights holder” for F1 when the deal is announced.

That is the same with MLS. While Apple’s MLB package does not “fit” this formula, Cue called the MLB package “‘a test’ for the company’s sports strategy.” He said that Apple will not “alter its vision to own the entire sports league experience for a customer just because commissioners insist on selling their games to multiple media companies” (CNBC Sport, 10/16).

United States Grand Prix boss Bobby Epstein agrees with this article and has conceded he fears Formula 1 will lose “presence” if ESPN loses the broadcast rights to the championship.

“I think ESPN has been really good in the US for the sport, partially because the races that take place in the US morning time are on in public spaces, bars, and restaurants during brunches and lunches that people will casually encounter,” he explained in a recent select media call.

“My fear with a change to Apple, you would lose some of the presence it has. So Apple would have to find ways to counter that loss, I think.

“My hope would be that Apple would do some extraordinary things if it wound up being the broadcaster to make sure the non-US races still appear… that the American fans still have good access to it.”

Editor’s Note: Epstein is 100% correct – the millions of TV screens in bars and restaurants DO NOT broadcast Apple TV, and hence F1 will lose all that exposure that ESPN brings not only with its live broadcasts but also with its replays during times when the bars are packed.

Apple TV only has 45 million subscribers globally, much less in the USA.  ESPN and ABC reach over 100 households. Hence, F1 TV ratings in the USA will plummet with Apple TV.  F1 is going for the big money grab, just like NASCAR did. The result: NASCAR’s TV ratings are in the tank and its sponsors are losing millions in exposure.

Apple’s View

Apple revs up for F1 rights: Here’s what to know https://t.co/YakUEJ7UgQ

— AutoRacing1.com (@AutoRacing1) October 16, 2025

As Formula 1’s U.S. broadcasting rights hang in the balance with ESPN’s deal set to expire after 2025, rumors swirl of a blockbuster shift to Apple TV+—a move that could double the sport’s annual revenue but at the steep cost of accessibility.

–by Mark Cipolloni–

With Apple reportedly tabling a $150 million-per-year offer, far surpassing ESPN’s $85 million pact, the allure of cash is clear. Yet, this pivot to a subscription-based streaming service echoes NASCAR’s disastrous 2022 media rights gamble, where chasing record fees led to fragmented coverage, cord-cutter alienation, and a 13% plunge in average Cup Series viewership to 2.52 million in 2025.

For F1, already riding high on 1.4 million average viewers for its first 18 races this season, the risk is a similar nosedive that could erode sponsor value and stall its American surge.

Of the 18 F1 races held so far this season, all but two (Miami and Singapore) have seen year-over-year viewership increases, and 11 of the 18 (Australia, China, Monaco, Spain, Canada, Austria, Great Britain, Belgium, The Netherlands, Italy, Azerbaijan) scored event record audiences.

Across ESPN, ESPN2 and ABC, F1 races are averaging 1.4 million TV viewers, ahead of the all-time U.S. television record average of 1.21 million that was set in 2022.

NASCAR’s $7.7 Billion Bet Backfires: Ratings in Freefall

NASCAR’s seven-year, $7.7 billion media deal—split among FOX Sports, NBC, Amazon Prime Video, Warner Bros. Discovery (via USA Network and FS1/TNT), and others—promised innovation and youth appeal when inked in 2022.

Instead, it has amplified longstanding woes, with 2025 marking the sport’s lowest ratings in years. The New Hampshire playoff opener limped to 1.29 million viewers, a staggering 31% drop from 1.88 million in 2024, while playoff races overall averaged just 1.558 million—down nearly 17% year-over-year. The Charlotte ROVAL 400 on USA Network fared no better, drawing 1.544 million compared to 2.4 million on NBC the prior year.

Insiders like Eric Estepp pin the blame on structural rot: an aging fanbase (the oldest in major U.S. sports), three-hour race fatigue, and brutal NFL overlap, where Sunday slots pull 25 million viewers to NASCAR’s sub-1.3 million.

But the TV deal’s fingerprints are everywhere. With more races shoved to cable channels like USA and FS1 than ever—cable households now at 68.7 million, down from 105 million in 2010—the shift has locked out cord-cutters, especially millennials (18% planning to ditch) and Gen Z (23%). Amazon’s streaming experiments, like the Michigan Speedway race’s 1.77 million (a 16.2% dip), highlight fragmentation’s toll, as fans scramble across platforms.

Fans aren’t holding back. Social media erupts with gripes over “confusing” broadcasts and playoff tweaks allegedly swayed by networks, though veterans like Jeff Burton deny it: “TV didn’t make this decision… NASCAR takes all the information and makes a call.”

Reddit threads blast the deal for “dollars over terms,” lamenting too few prime-time slots on FOX or NBC and the alienation of older fans by streaming mandates. Even Denny Hamlin regrets it: NASCAR “took the most money, not the best deal, for the long run,” poaching sponsor dollars in the process.

Veteran Kenny Wallace urges patience, touting 2026 car and points changes, but the damage is evident—sponsors face shrinking ad impressions on cars and suits, squeezing team budgets amid a “perfect storm” of decline.

F1’s Streaming Siren Song: $150 Million vs. Mass Appeal

Enter Formula 1, where Apple’s overtures—fueled by Tim Cook’s fandom and the $600 million-grossing Brad Pitt “F1” film—threaten a parallel path. Talks are in “final stages” for exclusive U.S. rights from 2026, potentially announced at Austin’s Grand Prix this coming weekend.

ESPN, prioritizing “fiscal responsibility,” won’t counter, leaving the door wide open despite F1’s boom under its watch: 1.4 million average viewers, with 11 record-setting races and a 24% uptick for Azerbaijan alone.

Apple’s vision bundles F1 with MLS and MLB on its $9.99/month TV+ app, possibly simulcasting Sky Sports feeds or producing in-house. The payday swells F1’s $1.1 billion global media pot, but at what price?

Exclusivity could shutter F1.TV for U.S. fans—a profitable direct-to-consumer hit—erecting a paywall in a market already splintered by Peacock, Prime, and Paramount+. ESPN’s cable/ABC slots drove casual growth via “Drive to Survive”; Apple’s model risks reverting to niche status, much like NASCAR’s cable exodus.

Sponsors in the Crosshairs: Exposure Over Earnings

The real casualty? Sponsors, who inject $500 million yearly into F1 teams, relying on broad TV eyes for ROI. NASCAR’s slide proves it: Lower ratings mean fewer logo sightings, forcing teams to trim competitiveness. For F1, with U.S. teams like Haas and incoming Cadillac/Andretti eyeing expansion, plummeting numbers could deter brands like Rolex or Heineken from mass-market bets. As one NASCAR fan lamented amid the “burnout” by playoffs, accessibility isn’t negotiable—yet both sports seem poised to test it.

Liberty Media might hybridize with ESPN for reach, but history warns against greed’s blind spots. NASCAR’s “bold gamble” tanked ratings across the board.

Perhaps F1 should not bite the apple if it’s already rotting.