Introduction

Apple has agreed to a five-year deal to broadcast Formula 1 in the United States, starting from 2026, taking the rights from ESPN. The agreement marks Apple’s most ambitious move yet into live sport and strengthens its efforts to expand Apple TV+ beyond scripted entertainment.

Breakdown

For Apple, securing Formula 1 rights is a way to differentiate Apple TV+ in a crowded market dominated by Netflix, Disney+, Amazon Prime Video, and Hulu. Live sport remains one of the few types of content that reliably attracts large, loyal audiences, something streamers' services depend on to reduce subscriber turnover.

It also signals a shift in the balance of power in sports broadcasting. ESPN, owned by Disney, previously held the U.S. F1 rights but lost them to Apple. The setback adds to the pressure on Disney’s media arm, which is already sharing NBA broadcasting rights with Amazon Prime and NBC. With sports rights fragmenting and tech firms willing to pay more for exclusivity, Disney’s long-held dominance in live coverage is being challenged.

At the same time, Paramount, following its merger with Skydance, is reportedly exploring a deal to buy Warner Bros Discovery. This is part of a broader consolidation push among traditional media companies racing to keep up. In that context, Apple’s move is as much defensive as it is strategic: a statement that it intends to be a lasting player in live media.

For Formula 1, the deal brings global reach and integration across Apple’s ecosystem, from TV+ and Music to hardware-linked fan experiences. It’s a chance to build on its growing popularity in the U.S. following the success of Netflix’s Drive to Survive.

Commercial Impact

The agreement, reportedly worth $140–$150 million a year, surpasses ESPN’s previous deal and underlines Apple’s willingness to spend heavily to expand Apple TV+. While that figure is modest compared to Apple’s overall revenues, it represents a significant investment in audience engagement and brand positioning. However, Apple will need to maintain broadcast-quality standards, managing the integration with F1's global broadcast production, and converting occasional F1 viewers into paying subscribers of Apple TV+ are hurdles that Apple will have to overcome.

For other broadcasters, the deal intensifies competition in an already volatile market. ESPN’s loss of F1 and its shared NBA package show how even long-established networks are struggling to keep pace with tech companies prepared to spend for growth.

How Legal Teams Get Involved

A rights deal of this scale calls on several specialist teams:

  • Media and IP Lawyers negotiated the broadcast, highlight, and digital-distribution rights, ensuring Apple’s exclusivity in the U.S. market.
     
  • Regulatory and Competition Teams reviewed the agreement to confirm compliance with U.S. and international antitrust rules.
     
  • Commercial Teams oversaw integration of F1 content into Apple’s streaming platforms, managing licensing and service-level obligations.
     
  • Employment and Corporate Lawyers advised on staffing, production operations, and compliance across jurisdictions as Apple expands its live-sports infrastructure.

Future Outlook

Apple’s entry into Formula 1 marks another step in its slow but deliberate expansion into live entertainment. Success will depend on whether the company can turn premium sports rights into sustained subscriber growth and meaningful engagement. 

As rivals like Amazon and Disney reconfigure their sports portfolios and Paramount considers new acquisitions, the fight for live content is becoming the next frontier of streaming. For Apple, Formula 1 is both an experiment and a signal proof that its vision for Apple TV+ extends far beyond. The race for streaming dominance is no longer just about who tells the best stories, but who owns the moments audiences refuse to miss.