Tech giant Apple (AAPL) and motorsport firm Formula 1 (FWONK) have signed a five-year deal that will make Apple TV the exclusive home for all F1 races in the U.S. starting in 2026. Notably, Apple is paying around $140 million per year for the rights, according to CNBC. This is a big change from ESPN (DIS), which previously held the rights and was paying about $85 million annually. Nevertheless, ESPN said in a statement that it’s proud of what it accomplished with Formula 1 and looks forward to wrapping up the final season on a strong note.
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With the new deal, Apple TV subscribers will get full access to every F1 race, including practice sessions, qualifying rounds, and Sprint races, as part of the standard $12.99 monthly subscription. This is different from Apple’s deal with Major League Soccer, which requires an additional subscription. Furthermore, some practice sessions and select races will be available for free in the Apple TV app. Meanwhile, F1 TV Premium, Formula 1’s own streaming service, will still be available in the U.S., but only through Apple TV.
Interestingly, a big part of Apple’s approach to live sports is being able to have full control of the viewing experience. In fact, Eddy Cue, Apple’s Senior Vice President of Services, said that the company only enters sports deals when it can offer something different from traditional broadcasts. This deal also builds on Apple’s growing relationship with Formula 1, following the release of F1: The Movie, starring Brad Pitt, which became the highest-grossing sports movie ever. As a result, F1 CEO Stefano Domenicali said the partnership will help grow the sport’s presence in the U.S. even further.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, 13 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $255.50 per share implies 2.3% upside potential.
