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Formula One CEO Stefano Domenicali is looking at the new Apple rights deal with rose-colored glasses.
The move from ESPN to Apple for the global auto circuit’s U.S. rights was largely seen as sacrificing reach for money; Apple is paying $140 million per year, whereas ESPN was in the $80-90 million range. But in an interview with Racer, Domenicali raised eyebrows as he discussed the reach of the respective platforms.
“I don’t want to, for a single second, talk badly about the ESPN relationship because they were the first to believe in us. I need to thank them … But I do believe that the reach that we’re going to have through the streaming platform, through Apple, will be even bigger in the future and it is what we want to test in a market that is more mature than the others,” the F1 CEO said. “It will allow us to enter in the houses of other people in a different way, in great quality that is very important for us. So, that is what I believe the Apple relationship will bring to us in the American market.”
As of 2024, ESPN was in about 68 million homes. Meanwhile, ABC—which aired several F1 races last year—is in a fair amount more households. Apple executive Eddy Cue said last year that the AppleTV+ streaming service has “significantly more” than 45 million subscribers, but did not specify a number or distinguish between domestic and international users. As Awful Announcing pointed out, Apple accounts for less than 0.5% of TV viewing in the U.S. according to Nielsen measurement systems.
When Domenicali refers to “other people” that F1 can reach in the Apple deal, he could be citing young professionals who are “cord nevers,” meaning people who have never subscribed to a traditional Pay-TV bundle. F1 also has a different customer base than standard American sports, as the global audience is cosmopolitan and diehard fans spend massive amounts of money to go to races in exotic destinations like Monaco.
In the interview, Domenicali also touted Apple’s tech bonafides, citing the company’s vertical integration through apps and devices as “a new tool of connectivity.”
“Apple is in the hands of the majority of people because it allows everyone to be connected,” he said. “We want to be connected and relevant and that’s where we believe that we took the right decision to go in this direction.”
