Apple set to secure US streaming rights for Formula 1 in landmark $150 million deal: Report

Apple is poised to enhance its sports streaming portfolio by pursuing the U.S. broadcasting rights for Formula 1. A report from Business Insider reveals that the tech powerhouse has made a substantial bid, offering at least $150 million per year to secure these rights starting in 2026. Currently, the streaming rights are held by ESPN, a subsidiary of Disney, which has reportedly opted not to counter Apple’s offer. This strategic move comes on the heels of Apple’s successful release of "F1," its original film centered around Formula 1, highlighting the company's commitment to expanding its live sports offerings. If the deal comes to fruition, it would represent Apple's third significant sports agreement. The company has already established partnerships to stream Friday Night Baseball and Major League Soccer. Interestingly, Apple's proposal would nearly double ESPN’s existing annual expenditure on Formula 1 rights, which stands at approximately $85 million. However, ESPN seems willing to step back and redirect its resources, particularly given the rising costs associated with sports streaming. The popularity of Formula 1 in the United States has surged in recent years, largely fueled by the Netflix series "Drive to Survive," which premiered in 2019. This documentary has played a crucial role in captivating younger audiences, transforming Formula 1 from a niche interest into a major presence in American entertainment. According to ESPN, viewership for races has more than doubled since 2018, with current averages hovering around 1.3 million viewers in the U.S. Despite the competitive landscape for sports rights, some of the previous contenders have not been as aggressive this time around. Netflix, which considered bidding for F1 rights in 2022, is not expected to pursue this latest opportunity. Other potential bidders also appear to have cooled on the idea. In contrast, Apple continues to invest significantly in original content and live events, and while it has steered clear of bidding for NFL rights—the pinnacle of American sports television—its bold move for Formula 1 underscores its belief in the sport's global appeal and its value as a streaming asset.