After months of rumors and speculation, Apple on Friday announced it will offer live races from Formula 1 on an exclusive basis for fans in the United States.
The deal is worth around $160 million per year and will run for five years, according to ESPN, the Disney-owned sports network that is set to lose its TV rights to Formula 1 races.
ESPN began offering Formula 1 events on television in 2018, and its rights deal runs through the end of the year.
“We’re incredibly proud of what we and Formula 1 accomplished together in the United States and look forward to a strong finish in this final season,” an ESPN spokesperson said in a statement. “We wish F1 well in the future.”
Events not offered on ESPN have been available to Formula 1 fans through F1 TV, a premium streaming service backed by the race organization. On Friday, F1 TV stopped offering annual plans to fans in the U.S., and the same will occur for monthly subscribers on December 8. Subscriptions will remain active until early January until the first races become available to Apple TV subscribers.
Apple TV — previously known as Apple TV+ — costs $13 per month or $130 per year. Subscribers of Apple One, the tech giant’s premium services bundle, have included access to Apple TV+ as part of their membership.
In the months leading up to the rights deal, Apple has worked to make Apple TV more accessible to sports fans and streamers alike: The tech company announced a partnership with Amazon to offer Apple TV’s content through Amazon’s Prime Video Channels marketplace. Apple also has two deals with Comcast that allows Xfinity TV and Xfinity Internet subscribers to bundle Apple TV+ with Netflix and Peacock for $15 per month, and all streamers — whether they subscribe to Comcast’s services or not — can pair Apple TV and Peacock together for the same $15 per month. Some phone services like T-Mobile and Verizon also offer extended free trials of Apple TV with certain wireless plans.
Casual fans won’t need a subscription: Apple says all practice races and some main races will be available to stream for free through the Apple TV app, which is widely available on Apple devices and on third-party platforms like Amazon’s Fire TV, Roku, Android TV (Google TV) and smart TVs made by Samsung, LG and VIZIO. Apple says event-related features and enhancements will be revealed in the next few months.
Formula 1 fandom began to grow in the United States during the coronavirus health pandemic, when many Americans were stuck at home with little more to do than stream television. Many decided to watch the Netflix documentary series “Formula 1: Drive to Survive,” which attracted new fans to the motorsport and helped boost viewership of races on ESPN in recent years.
While Apple TV has less content than some of its streaming rivals, the service has made up for it — and justified its relatively high monthly pricing — by distributing high-quality comedies and dramas. Many of its original programs have won prestigious awards, and some shows like “Ted Lasso” and “Severance” have gained mainstream appeal.
As with other streamers, Apple has aggressively pursued live sports rights as a way to bolster Apple TV’s prominence in the marketplace. For several seasons, Apple has offered a window of Friday evening games from Major League Baseball, and it is the exclusive international distributor of Major League Soccer’s MLS Season Pass.
The deal with Formula 1 expands Apple’s budding relationship that began with the co-production of “F1: The Movie,” which saw nearly $630 million in gross box office ticket sales this year. The movie will be available to stream on Apple TV in December.
“We’re thrilled to expand our relationship with Formula 1 and offer Apple TV subscribers in the U.S. front-row access to one of the most exciting and fastest-growing sports on the planet,” said Eddy Cue, Apple’s Senior Vice President of Services. “[Next year] marks a transformative new era for Formula 1, from new teams to new regulations and cars with the best drivers in the world, and we look forward to delivering premium and innovative fan-first coverage to our customers in a way that only Apple can.”
“This is an incredibly exciting partnership for Apple and the whole of Formula 1 that will ensure we can continue to maximize our growth potential in the U.S. with the right content and innovative distribution channels,” Stefano Domenicali, the President and CEO of Formula 1, said in a statement. “We are no strangers to each other, having spent the past three years working together to create F1: The Movie, which has already proven to be a huge hit around the world. We have a shared vision to bring this amazing sport to our fans in the U.S. and entice new fans through live broadcasts, engaging content, and a year-round approach to keep them hooked.”
