The deal is for five years. The investment company Liberty Media, which owns the rights to show “Formula 1”, will earn $750 million. This amount is more than 65% more than the value of the current contract with ESPN. The American TV channel signed a contract worth $450 million in 2022 – at $90 million a year. ESPN has been broadcasting Formula 1 since 2017, but did so on a free-to-air basis until 2022. Then the broadcaster committed to developing a specialized streaming service for fans of the leading circuit races – “F1 TV”.
The “Apple TV” service announced to provide viewers with themed programs with a more dynamic level of viewing. The US racing audience, which has increased to 1.4 million viewers, is expected to continue to grow. However, it remains unclear whether it will continue to be possible to use the F1 TV service for free.
In addition to Apple, the deal was also claimed by Netflix and Amazon Prime, which have experience in sports projects and broadcasts. “Netflix attracted massive interest in racing in 2019 during its successful documentary series “Formula 1: Drive to Survive.” In turn, “Amazon Prime” increased the number of Champions League matches streamed to its subscribers.
The reason for Liberty Media’s choice of Apple TV can be argued by the colossal success of the feature film “F1”. The film, produced by the service, grossed more than $629 million at the box office with a budget of $200 million.
For the service, the deal will be another notable step in the field of sports broadcasting. “Apple” previously signed a 10-year contract worth $2.5 billion with MLS (the leading U.S. baseball league). The broadcasting of “royal races” will allow the company to significantly strengthen its position among the world’s sports broadcasters.
Formula 1 was first shown to US viewers in 1962. ABC TV channel broadcast individual races until the mid-80s of the XX century, when the races changed “residence” to ESPN. Fox Sports broadcast Formula 1 from 1997 through 2012. In 2013 through 2017, it was possible to see the races on the NBC TV channel. At that time, the broadcaster’s contract with the rights holder amounted to $4 million per year, which is 37.5 times less than the new contract with Apple.
