Apple clinches exclusive US media rights for F1 races under five-year deal

(Reuters) -Apple has landed U.S. broadcast rights to Formula 1 in a five-year deal that would help the tech giant bolster its streaming service with one of the country's fastest-growing sports, following the success of its Brad Pitt-starrer "F1: The Movie".

The two sides did not disclose the financial details of the deal on Friday. CNBC reported it was for $140 million a year, much higher than the $90 million Walt Disney-owned ESPN was paying per season for F1, which it has broadcast since 2018.

Apple's deal begins next year. The iPhone maker will stream F1 on Apple TV, its critically acclaimed streaming service that won 22 Emmy Awards this year but lacks the scale to compete with industry leaders such as Netflix and Disney+ despite billions of dollars in investment.

F1 joins Apple's growing sports lineup, which includes Major League Soccer and "Friday Night Baseball." Live sports have become a key battleground in the streaming industry as platforms compete for costly rights that attract loyal fans, reduce churn, and increase ad revenue.

"We're thrilled to expand our relationship with Formula 1 and offer Apple TV subscribers in the U.S. front row access to one of the most exciting and fastest-growing sports on the planet," said Eddy Cue, Apple's senior vice president of services.

As part of the agreement, Apple TV will host all practice, qualifying, Sprint sessions, and Grands Prix. Select races and all practice sessions throughout the season will also be available to watch for free in the Apple TV app.

The deal follows the box office success of the Apple-produced F1 film, which has grossed more than $628 million worldwide, according to IMDb's Box Office Mojo. The movie will make its global streaming debut on Apple TV on December 12.

Formula 1 added nearly 90 million new fans last year, with China showing the biggest percentage rise following the sport's post-COVID return to Shanghai, according to Nielsen Sports data.

(Reporting by Harshita Mary Varghese in Bengaluru and Alan Baldwin in London; Additional reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona and Leroy Leo)