Apple is finalizing a massive $140 million annual deal for Formula 1's U.S. media rights, marking the tech giant's boldest move yet into premium sports streaming. The announcement comes as Apple's services chief Eddy Cue openly criticizes the current sports streaming landscape, calling for fundamental reforms that could reshape how fans access live content. This deal positions Apple to directly challenge traditional broadcasters while testing new streaming models.
Apple just made its biggest bet on sports streaming yet. The company is about to announce a $140 million per year media rights deal with Formula 1 for U.S. broadcasting rights, according to people familiar with the matter speaking to CNBC. The move comes as Apple's services chief Eddy Cue openly challenges the entire sports streaming industry, arguing the current system is fundamentally broken.
The F1 deal represents a seismic shift in Apple's content strategy. While the company has dabbled in sports with Major League Soccer and select baseball games, this $140 million annual commitment dwarfs previous investments. For context, ESPN currently pays around $90 million yearly for F1 rights, meaning Apple is betting nearly 60% more on the racing series' American appeal.
Cue's timing isn't coincidental. Speaking at industry events, he's been vocal about sports streaming's fragmentation problem - fans need multiple subscriptions to follow their favorite teams across different platforms. "The current model doesn't serve consumers," Cue said, though he stopped short of detailing Apple's alternative approach. The criticism carries weight given Apple's track record of entering markets only when it believes it can meaningfully improve the user experience.
The F1 acquisition fits Apple's broader premium content playbook. Rather than compete on volume like Netflix or Amazon Prime Video, Apple targets high-value, culturally significant properties. Formula 1's growing American fanbase - viewership jumped 54% in 2023 - makes it an ideal target for Apple's quality-over-quantity strategy.
This deal also signals Apple's willingness to play hardball with traditional broadcasters. ESPN has held F1 rights since 2018, helping grow the sport's U.S. audience through strategic promotion and personality-driven coverage. Apple's aggressive bidding suggests the company sees sports as essential for Apple TV+ subscriber growth, even if it means burning relationships with legacy media partners.
