Apple’s entry into the Formula One rights sweepstakes presents an interesting dilemma for the global auto racing league.
After the Financial Times reported that Apple has made a bid for F1’s United States live rights following the early box-office success of F1: The Movie, which it produced starring Brad Pitt, Puck media reporter Dylan Byers laid out the scenario of how F1 must decide between maximizing money versus audience size when choosing between Apple and incumbent ESPN.
“I’m reliably told that Apple’s offer came in between $150 million and $200 million per year—far above the reported $85 million to $90 million that ESPN is currently paying per annum, and far beyond what ESPN can rationally afford,” the report said. “As with their other bidding wars against tech giants, [Bob] Iger and [Jimmy] Pitaro will inevitably have to persuade [parent company] Liberty’s John Malone and Derek Chang to take less from ESPN in order to maintain the reach and marketing that ESPN provides. (Of course, Major League Soccer commissioner Don Garber learned the hard way how giving near-exclusivity to Apple can somewhat disappear a sport.)”
The dollar figure currently offered by Disney/ESPN to retain its F1 rights is unknown.
ESPN announced earlier this week that F1 telecasts are averaging 1.3 million viewers across ABC, ESPN, and ESPN2 this season, up 17% as compared to last year’s full-season average. While seven of this year’s twelve F1 events have set U.S. viewership records, its audience still pales in comparison with NASCAR in this country.
Apple’s MLB and MLS games are not Nielsen-rated, and all indications are that its baseball games draw a fraction of the audience watching games aired on ESPN. A survey published last year by the research firm MoffettNathanson estimated that just 11% of U.S. households use the Apple TV+ streaming service.
While Apple TV+ does carry the aforementioned MLB and MLS games, many of its subscribers use it for entertainment programming as opposed to live events. ESPN has a flywheel where it can promote F1 races on its myriad other high-reach live sports events, and attract casual viewers who still flip to the channel expecting a live event.
The Financial Times report said that F1’s total global media rights were worth $1.1 billion per year in 2024, and that other bidders besides ESPN and Apple are expected to join the fray.
