Apple in Talks to Acquire US Formula 1 Broadcast Rights, Potentially Replacing ESPN

Apple is reportedly in talks to acquire US Formula 1 broadcast rights, potentially replacing ESPN when its contract expires after the 2025 season. This move is part of Apple's push to expand its presence in live sports broadcasting and enhance its Apple TV+ offering. The potential bid comes after the success of "F1: The Movie," produced by Apple, and coincides with Liberty Media's efforts to grow Formula 1's American footprint.

Apple Inc. (NASDAQ:AAPL) is reportedly in talks to acquire exclusive U.S. broadcast rights for Formula 1, positioning itself in direct competition with Disney's ESPN. The move comes as Apple seeks to expand its presence in live sports broadcasting and enhance its Apple TV+ offering [1].

The reported negotiations follow the success of Apple's high-budget Formula 1 film, "F1: The Movie," which has grossed over $300 million globally. The film, produced under the Apple TV+ banner, is considered a significant theatrical milestone for the company's content arm [2]. Apple's interest in the Formula 1 broadcast rights coincides with Liberty Media's efforts to grow the sport's American footprint.

Currently, ESPN holds the exclusive U.S. broadcast rights for Formula 1 through the 2025 season. However, ESPN's exclusivity period to negotiate a new contract with F1 expired last year, opening the door for new bidders [1]. Apple is aiming to capitalize on the sport's growing popularity in the U.S., which has been driven by the success of Netflix's hit docu-series "Formula 1: Drive to Survive" and recent Miami and Las Vegas Grand Prix events [2].

Apple TV+, known for original shows such as "Ted Lasso" and "The Morning Show," has been trailing behind competitors like Netflix, Disney+, and Amazon Prime Video in subscriber numbers. Acquiring Formula 1 rights could help boost its sports content offering and drive subscriber growth [1]. Streaming platforms are investing heavily in exclusive rights to dominate the lucrative live sports market, with Netflix recently paying over $5 billion to be the exclusive home of World Wrestling Entertainment's "Raw" in several territories [1].

The potential bid signals Apple's continued push into media and entertainment, a category that is now key to the company's long-term growth narrative amid maturing iPhone sales and tightening hardware margins. By securing Formula 1, Apple could boost TV+ subscriptions and enhance its ad-tech and user engagement ecosystem [2].

While ESPN could still retain the rights, Apple's entry into the bidding war is a clear message: the race for premium sports content is intensifying, and Apple wants pole position.

References:
[1] https://finance.yahoo.com/news/apple-bids-formula-1-rights-042251003.html
[2] https://site.financialmodelingprep.com/market-news/apple-eyes-formula--broadcast-rights-in-the-us-amid-streaming-push