In late 2025 streaming player Apple announced it would be ditching its Stateside MLS deal early. The platform confirmed, however, that it would pick up the rights to Formula 1 in the United States. The deal could be worth $140m a year, but what does it mean for sport?
On first appraisal, the new agreement that will see Apple displace ESPN to become the exclusive US broadcaster looks like F1 has simply prioritised improved commercial terms over broadcast reach. But this is a narrow reading of a deal that commences in 2026. It misses the strategic intent behind the partnership and how it could set a new blueprint for how sports succeed within a shifting media landscape.
The investment in F1 demonstrates Apple’s ongoing commitment to sport as a core part of its content strategy, but also a strategic shift in how it executes. The partnership places F1 at the centre of Apple’s ecosystem of hardware and services and, in the words of Ian Holmes, chief media and broadcast officer at F1, “helps fans consume content in ever more different ways, at different times and on different devices”.
Apple’s reimagination of the broadcast deal
Apple’s five-year agreement is reported to be in the region of $140m per year, representing a 75 per cent uplift on the previous ESPN deal and underlining F1’s continued momentum in the market. And while on the surface it may appear to be a straight swap of broadcast partner, the Apple agreement is a step change in innovation. By placing highlights, editorial and analysis across Apple’s high-traffic apps and services, the F1 story should have more opportunities to cut through during the week rather than relying on the limited exposure of a single race broadcast.
This type of amplification is not new, but the scale Apple can offer is material to F1’s growth ambitions in the US. Its holistic approach to distribution and marketing also reflects wider shifts in consumption. F1 has already been successful in attracting a younger, more gender-balanced audience in the US, nearly 50 per cent of new fans in the US are aged 18-24 and three in four are women, but the strategic intent of this deal aligns with clear changes in the media landscape. Gen Z are twice as likely to favour shoulder content on digital channels over live action on TV compared to Boomers, according to our own research at Two Circles, and this agreement positions F1 to meet those behaviours head on.
What does this mean for Apple?
Sport remains one of the most consistent and valuable forms of content, commanding a premium for its must-watch status and acting as a stabilising force in an increasingly fragmented media world. The recent swoop by Paramount for Uefa Champion’s League rights in the UK and Germany is a shining example of the value placed on unique sports IP to drive growth in key markets. MLS was one of Apple’s early bets on the economics of live sport, and this agreement represents a clear doubling down. This time, Apple has invested in a truly global, year-round property.
It would be remiss not to mention the global phenomenon that is F1 The Movie, grossing over $600m and establishing itself as one of the standout films of 2025. The convergence of sport and entertainment continues to evolve, and this partnership marks another step in that trajectory. It enables Apple to build on the impact of the film and position access to F1 as a core component of the broader Apple proposition.
Implications for the business of sport in the UK
In the UK, where the sports rights market is highly competitive, this move by Apple adds another dimension. Sports IP owners no longer need to look solely to the traditional group of broadcasters. Instead, they can broaden their market, increase competitive tension and unlock new value by reframing how they think about reach and engagement.
Key UK sports such as football, cricket and rugby can learn from this model. By expanding their pool of potential distributors and focusing on multi-platform engagement, they can continue to grow both audience and commercial value. The market for sports broadcast rights has changed materially in the last decade, but the fundamentals remain constant: reach and engage more fans to drive revenue.
Looking to 2026 and beyond
By the time the cars hit the grid in Melbourne for the 2026 Formula One opening weekend, this partnership will have shown how sport, entertainment and technology can converge to reimagine how fans are reached and engaged. It demonstrates the ongoing premium of sports IP, but one increasingly realised through ubiquity rather than solely exclusivity.
For sports organisations, this model should be seen as an invitation to be more expansive and innovative in their growth strategies. For fans, it should deliver more frequent and richer experiences of the sport they love. It is a win for the audience and a new blueprint for how sports can continue to grow in the digital age.
Tom McJennett is Managing Director at Two Circles