Apple revs up for F1 rights: Here's what to know

Core Insights - Apple is nearing a media rights deal with Formula 1 valued at approximately $140 million per year, indicating a significant investment in motorsports [1][4][6] - Despite the growing popularity of Formula 1 in the U.S., current viewership remains relatively low at about one million viewers per race, suggesting substantial growth potential for the sport [2][5] - Apple’s strategy involves acquiring comprehensive rights for sports, aiming to consolidate all Formula 1 races and other sports under its platform, Apple TV [9][10] Company Strategy - Apple is positioning itself as a long-term player in the sports media landscape, with a focus on acquiring all rights for specific sports rather than fragmented rights across multiple platforms [10][12] - The company views Formula 1 as a "buy low candidate," reflecting a belief in the sport's potential for future growth despite its current valuation increase from $4 million to $140 million annually [6][5] - Apple’s senior VP of services, Eddie Q, expressed confidence that leagues will eventually align with Apple's vision of consolidating rights to a single platform, although major rights are currently locked up for years [12][13] Industry Context - The media rights landscape is evolving, with significant increases in rights fees for various sports, including women's sports, indicating a broader trend of rising valuations in the sports industry [7][8] - Apple’s current sports portfolio, which includes Major League Soccer and a small portion of Major League Baseball, is not considered dominant, highlighting the competitive nature of sports media rights [8][9] - The traditional media companies may face challenges in the future, as Apple aims to establish itself as a robust player in the media industry over the next decade [12][16]