Apple wants to take over Formula 1 rights for $150 million a year!

Apple wants to take over Formula 1 rights for $150 million a year!

Apple has recently become heavily involved in sports and is now planning to take over the broadcast rights for Formula 1 in the USA. This would be a significant step for the company, which has made an offer of at least $150 million (128.39 million euros) per year for race broadcasts from 2026, reports crown.

Current rights holder ESPN, which is owned by the Walt Disney Company, is not expected to respond to Apple's offer. ESPN's exclusivity period for a contract extension with Formula 1 expired in February. Apple could therefore present Formula 1 with contemporary technologies and a new approach. Loud Yahoo Sports Apple is the leading bidder and is close to winning the contract.

Details about taking over the rights

Apple's bid significantly exceeds ESPN's current offer of about $85 million per year. ESPN had budgeted for a counteroffer of $95 million, but will not be able to beat Apple's offer. Liberty Media, the owner of Formula 1, is inclined to accept Apple's offer due to the significant price difference. Apple executives, including CEO Tim Cook, recently presented their bid in person at the Allen & Company conference in Sun Valley, Idaho.

The success of the film “F1: The Movie,” which grossed over $300 million worldwide, could also have a positive impact on contractual discussions. Additionally, the new technologies used in the film have the potential to improve the viewing experience of Formula 1 broadcasts.

Contextualization and challenges

This acquisition would be Apple's third entry into sports, having already acquired rights to Major League Baseball and Major League Soccer. At the same time, the switch from traditional broadcasts to streaming platforms like Apple TV presents a challenge. Fans who stick with regular cable TV may feel alienated. This change could exclude some loyal spectators, similar to other sports.

The popularity of Formula 1 has recently increased thanks to Netflix's successful documentary series "Drive to Survive", which has attracted many new fans. ESPN averaged 1.3 million viewers per race this season, which is a huge increase compared to other years. However, it remains uncertain whether Apple will be able to achieve these viewership numbers, as the company does not provide transparency into the ratings of its sports broadcasts.

These developments in sports broadcasting rights follow a larger trend that we are also seeing in other countries. In Germany, broadcasts of many sports such as basketball and ice hockey are increasingly disappearing from free TV, which is resulting in a switch to subscription models on platforms such as Amazon Prime Video and Telekom Trial month represents.