Formula 1 (FWONK), the premier motorsport sequence that mixes 200+ mph racing, innovative tech, and glamorous international areas the likes of Monte Carlo, is poised for an enormous 2026.
New rules for cars and engines and new groups from Audi and Cadillac imply extra eyeballs for F1, already the most-watched racing sequence, when the season kicks off in Australia this weekend.
And there is a big change coming to the all-important US market, which has been rising steadily for the reason that pandemic. Gone is ESPN (DIS), which broadcast F1 to the lots, and instead is tech large Apple (AAPL), which is able to solely supply up F1 livestreams and VOD replays, amongst different issues, on its Apple TV subscription service beginning this weekend.
For Apple, it appears the deal is a no brainer, however it’s extra nuanced for a sport like F1 that’s nonetheless rising within the US — and can’t afford any missteps. F1’s Apple partnership represents an enormous development alternative to satisfy viewers on a number of platforms, however for F1 it is also a danger to show away from conventional broadcast, with its bigger viewers and mixture of informal and hardcore followers.
Now, anybody who needs to look at F1 has to pony up $12.99 a month for Apple TV, which might shrink that rising US viewers.
And simply earlier than the season begins, Cupertino did one thing unthinkable. Last week, Apple and one in all its largest streaming rivals, Netflix (NFLX), introduced a cross-platform F1 content material deal. Netflix’s “Drive to Survive” docuseries, which made F1 mainstream within the US, will stream its new season concurrently on Netflix and Apple TV within the US.
“This is the first time in Netflix’s history that one of its original docuseries has ever appeared on a competing streaming platform. Not once. Not ever,” wrote advertising skilled and Business of Speed publication author Vincenzo Landino in a current publish.
Landino referred to as it the deal “nobody saw coming,” but that could be said about Apple’s foray into sports too.
Known more for streaming hits like Ted Lasso and Severance, Apple showered money on prestige programming to get subscribers on board. It dipped its toes into sports too, taking exclusive streaming rights of Major League Soccer, though MLS games appear on broadcast as well.
Apple’s involvement with F1 started in earnest with (*1*) stated Eddy Cue, Apple’s senior vp of providers, in an announcement Thursday morning.
In addition, Cue and Apple introduced that Tubi (FOXA) will stream “altcasts” for a number of races this season, and Yahoo Sports may also stream dwell apply and qualifying classes beginning with the Miami Grand Prix later this 12 months. (Yahoo Sports and Yahoo Finance are each a part of Yahoo Media Group.)
For its half, F1 says it is bullish on the brand new partnership.
“It’s not just Apple TV. It’s Apple Music, Apple News, the Apple stores,” Formula One group CEO Derek Chang stated this week at Morgan Stanley’s tech and media convention, per Sports Business Journal. “They have so many touch points that go well beyond what you think about from a traditional television standpoint. We don’t focus on reach in an archaic definition of how many people are watching you on TV, but really, [it’s] how do you touch your fans? How do you engage with your fans?”
Chang famous the field workplace success of Apple’s “F1: The Movie” and praised Apple and Netflix’s deal, which incorporates not solely “Drive to Survive” on Apple, but in addition the Canadian Grand Prix simulcast on Netflix.
But some Formula One buyers will not be joyful, with Wolfe Research noting that some are calling the Apple deal “a disaster,” due to the notion that Apple TV means much less distribution for F1 than ESPN would have for an essential development market just like the US.
While Apple would not escape subscriber numbers, The Information stories Apple had 45 million subscribers by the tip of 2025. ESPN has roughly 60 million pay TV subscribers (a determine that is fallen from 100 million in 2021), and 25 million ESPN+ digital-only subscribers.
But Wolfe Research deviates from the take that Apple is unhealthy for F1.
“We disagree with the idea that the Apple TV deal was a massive negative,” wrote Wolfe analyst Peter Supino in a observe. “A unique deal like [the Netflix/Apple deal] would almost certainly not happen with a legacy platform. Yes, ESPN has more reach, but ~2/3 of ESPN’s reach is from linear TV, which is a terrible platform for F1’s races which often air at 1 a.m. ET,” due to the global nature of the sport, he said.
Supino believes Formula One Group is “too cheap” at these ranges — which he defines as 21 occasions 2027 free money circulate estimates — and has an Outperform score on the inventory, with Apple part of the method.
For Apple, rolling the cube on F1 to spice up its content material choices, and after all its model affiliation with the preeminent racing sequence, is not any brainer. In addition, $150 million a 12 months for F1 rights is peanuts for Apple, which earned an astounding $112 billion in profit newest fiscal 12 months.
But it also means fans can forget about just flipping the TV on and coming across a live F1 race; those days are over, a gamble for Formula One.
Will the loss of the casual fan be big for the sport, or will the ubiquity of Apple products and the ability for F1 to serve custom content across iPhones, Apple Music, and even Apple Maps (which now includes detailed renderings of race tracks and audio walking tours with paired with Apple Fitness) mean there’s more for fans to access, where they are, and when they please?
“Every piece touches every other piece. An operating system for how a sport lives in your life: on your screen, in your ears, in your steps, on your home screen, on your wrist,” Business of Speed’s Landino wrote. “Apple started with a movie. Then it bought the rights. Now it’s running the ecosystem.”
That’s the bet Formula One is making with Apple, and vice versa. Tune in, or log on to Apple TV on your device of choice this weekend, to see if these two big names made the right call.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can observe him on X and on Instagram.
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