F1's Apple Partnership: A Game-Changer for US Broadcasts

Formula 1's long-anticipated partnership with Apple for exclusive US broadcast rights marks a pivotal moment for the series, underscoring its aggressive growth strategy in the American market. This five-year deal, integrating F1TV content directly into Apple TV, aims to significantly broaden F1's reach and capitalize on the sport's surging popularity.

Why it matters:

This partnership is critical for F1 owner Liberty Media, whose massive $24 billion valuation heavily relies on continued US growth. The deal is designed to propel F1's revenues and valuation even higher, by tapping into Apple's vast ecosystem and diverse audience, especially younger demographics who consume content across multiple platforms.

The Details:

• The exclusive five-year deal brings all F1 content, including F1TV's data, timing, and track maps, directly to Apple TV subscribers. F1TV in the US will now only be accessible via an Apple TV subscription.
• All broadcasts will also be available in Spanish, catering to the significant Spanish-speaking population in the US.
• Eddy Cue, Apple's SVP of Services, emphasized their long-term commitment and ambition to "exponentially grow the sport," hinting at global broadcast innovations stemming from this partnership.
• The timing aligns perfectly with the recent Brad Pitt F1 movie, released this year, making it easier for new fans to transition from the film to live F1 racing.
• This deal represents F1's strategic move to engage the broadest possible audience in the US, recognizing modern content consumption habits across various devices.

Between the lines:

This deal was meticulously planned, with Apple's investment in the Brad Pitt F1 movie preceding the broadcast rights acquisition. The movie's global success, particularly in the US and China, underscores the confidence both parties have in F1's growing appeal.

• Apple's Eddy Cue, a longtime Ferrari board member, developed a relationship with F1 CEO Stefano Domenicali, leading to these discussions over time.
• Liberty Media owner John Malone previously hinted at big tech companies outbidding traditional broadcasters for sports rights, citing their ability to attract customers and advertising.

The big picture:

Traditional broadcasters like ESPN, who invested in F1 when its US popularity was lower, are now losing out to tech giants. While F1 previously found homes on niche channels or occasionally on NBC, this Apple partnership ensures ubiquitous access.

• Interestingly, F1 previously garnered around two million viewers on ESPN in the 1990s, a healthy number even by today's standards, indicating a historical appetite for the sport in the US.
• Domenicali suggested that this Apple deal could extend beyond the US, respecting existing partnerships but always seeking opportunities for growth in other markets.

What's next:

Apple plans to amplify F1 content across its entire ecosystem, including Apple News, Maps, Music, Sports, and Fitness+. Some races and all practice sessions will be available for free on the Apple TV app, signaling a significant shift in F1's media approach, as Domenicali calls Apple "more than a platform; it's a social movement."

• A current challenge remains the clash between F1 races in the US time zone and the NFL season, particularly for events in Austin, Mexico, Brazil, and Las Vegas. The Las Vegas Grand Prix is strategically placed on the pre-Thanksgiving weekend, making a shift difficult due to travel logistics for other races in the region.