Apple has closed the rights to Formula 1 in the United States for five years and 750 million dollars. But looking only at the price is missing the pattern: it is building a vertical sports platform where it controls broadcasting, statistics, context and extra content. An ecosystem.
The inventory. In less than three years, Apple has accumulated:
- Exclusive MLS Rights worldwide ($2.5 billion until 2033).
- F1 rights in the United StatesApple is accumulating broadcasting rights, launching its own apps and structuring a closed ecosystem against the traditional broadcast model from 2026 (150 million annually).
- AppleSportsfree app launched in February 2024 with real-time statistics.
- Sports integration in Apple News, Apple Maps, Apple Music and Fitness+.
The model. Unlike MLS, where matches require a separate subscription, F1 will be included on Apple TV ($12.99 per month in the United States). The playoffs of the MLS have also become free for subscribers. Apple is keeping it simple: one payment, sports content included.
F1 TV Premium, the competition’s own service that costs $16.99 per month, will be included at no extra cost for those who already pay for Apple TV.
Between the lines. Apple is not seeking immediate profitability with sports rights. Seeks to anchor users to the ecosystem. Each broadcast supports Apple’s association with sport and can be an opportunity to sell more subscriptions to Fitness+ (there is F1 content that will be integrated there) or Apple One, or more Apple Watches ultimately. The strategy is the same as with Apple Music, TV+ (now ‘AppleTV‘) or iCloud: the content is the hook, the ecosystem is the business.
Telefónica, DAZN and traditional broadcast companies now have to compete against those who can afford to lose money on rights because they earn elsewhere. The same thing that happened to Netflix when Amazon or Apple itself entered its business.
He timing. The F1 movie, starring Brad Pitt and produced by Apple, has raised $629 million and has become the highest-grossing sports film in history. Apple has been working with F1 for three years. The rights agreement is not coincidental: it is the next phase of an already consolidated relationship.
F1 has grown exponentially in the United States thanks to ‘Drive to Survive‘ from Netflix. Apple has detected the exact moment to enter: when the public is built but before the market becomes saturated. With Brad Pitt’s movie, Apple launched a huge marketing campaign disguised as a movie and validated its own products as suitable for the film industry.
Yes, but. This model only works with great financial muscle. ESPN paid 85 million annually for F1. Apple has doubled the figure without blinking.
- Netflix has not shown great interest in live sports.
- Amazon bought the rights to the NFL and Ligue 1 at the time, but has not gone further.
Apple is creating something different: a layer that wraps sports in its technology. The Apple Sports app does not currently include any of streamingbut it is a hub that will be able to direct traffic to Apple TV.
The threat. If it works, Apple can bid for European rights: Premier, Champions, LaLiga… They have money, technology, brand and 2 billion active devices.
The problem for traditional TVs is not just that Apple enters their market. It’s that you can afford not to make money from it for years while you build your platform.
Featured image | Apple
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