Liberty Media defends Apple F1 deal as revenue grows

Liberty Media executives defended their decision to make Apple the exclusive U.S. broadcaster for Formula 1 from 2026, despite analyst questions about the deal's value, as the sport posted a 14% revenue increase to $3.87 billion for 2025. The new partnership will see F1's direct-to-consumer streaming service absorbed into Apple TV at no extra cost, with the tech giant also planning innovative broadcasts, including a collaboration with IMAX theaters.

Why it matters:

Shifting F1's valuable U.S. media rights from ESPN to Apple represents a major strategic gamble for Liberty Media. The move aims to leverage Apple's massive ecosystem and marketing prowess to accelerate growth in a critical market, but it risks alienating a segment of the traditional cable audience that fueled the sport's recent American boom.

The details:

• During a post-earnings Q&A, Liberty Media faced direct questions from analysts about whether the Apple deal would sustain F1's growth momentum.
• CEO Derek Chang responded by detailing meetings with Apple's Tim Cook and Eddy Cue, stating he was assured the company is committing significant resources to the project.
• The financial upside is clear: the Apple contract is reportedly worth $50 million more annually than the previous ESPN agreement.
• Revenue Growth: F1's total revenue jumped to $3.873 billion in 2025, driven by media rights fees, sponsorship deals, and the success of the recent F1 film.
• Broadcast Strategy: Apple is pursuing an aggressive, multi-platform strategy. This includes:
  • Absorbing the standalone F1 TV Pro service into Apple TV for subscribers.
  • Partnering with Netflix to co-stream the 2026 Canadian Grand Prix.
  • Collaborating with IMAX theaters across the U.S. to broadcast select races live on giant screens, a first for the sport.

What's next:

The 2026 season will be the first major test of this new media strategy. All eyes will be on subscriber uptake for Apple TV's F1 coverage and the reception to experimental broadcasts like the IMAX events.

• Success will be measured by sustained revenue growth and expanded fan reach without a significant drop in overall viewership.
• Should the partnership falter, Liberty Media may face increased pressure to justify moving away from a more traditional, broad-reach partner like ESPN.