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Apple to purchase F1 Broadcast Rights for $2 Billion?


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#1 aportinga

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Posted 02 October 2023 - 13:22

https://www.business...hts-mls-2023-10

 

This story is on many platforms this morning as well.

 

They are looking to bolster their MLS and general sports packaging.

 

"Rights" would include (mostly) the expansion rights and not existing rights that are already under contract with other businesses.

 

 



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#2 Risil

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Posted 02 October 2023 - 13:26

By "expansion rights" do you mean Apple would pick them up once the current deals have run out?

#3 Beri

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Posted 02 October 2023 - 13:32

As long as F1TV remains an option as well, let them have it.

#4 1player

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Posted 02 October 2023 - 13:33

As long as I don't need an Apple device to watch F1... I don't know what's worse, to have to pay Sky, or to have to throw away my PC and Android TV to watch F1.

#5 aportinga

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Posted 02 October 2023 - 13:35

By "expansion rights" do you mean Apple would pick them up once the current deals have run out?

 

I've read a few and not heard that - mostly as F1 moves into new countries/markets.

 

But I would have to assume that once contracts are up with existing providers - that they would have a right to bid.



#6 Beri

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Posted 02 October 2023 - 13:36

Well that is part of it all, isn't it? Apple to acquire the rights, only for fans to have to buy Apple devices to be able to watch it. So not only will they get the subscription money flowing in, they will boost sales of devices as well.

#7 Risil

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Posted 02 October 2023 - 13:39

Do you need to buy an Apple device to watch their streaming? I have no idea but I do have Apple Music on Android.



#8 Beri

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Posted 02 October 2023 - 13:46

I am likely to be one of the few who has never owned a modern Apple device, the iPod Shuffle is my only weakness where I have bought an Apple device, but I do believe Apple TV is only available on Apple devices.

#9 1player

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Posted 02 October 2023 - 13:49

Do you need to buy an Apple device to watch their streaming? I have no idea but I do have Apple Music on Android.


Does Apple ship an Apple Music Android app? Color me surprised, usually they tend to be pretty insular.

Still, I don't see how a SPORT fits into Apple's TV strategy. I really don't see it happening under the current leadership, it makes no sense at all.

#10 mclarensmps

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Posted 02 October 2023 - 13:51

You don't need Apple devices to watch Apple broadcasted shows. They have Firestick, Android and your TV's OS apps. 



#11 aportinga

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Posted 02 October 2023 - 13:53

Well that is part of it all, isn't it? Apple to acquire the rights, only for fans to have to buy Apple devices to be able to watch it. So not only will they get the subscription money flowing in, they will boost sales of devices as well.

 

I am not an Apple or MLS fan so I guess if we have any fans of both we could probably debate that.

 

How has MLS worked out on Apple?



#12 aportinga

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Posted 02 October 2023 - 13:55

Does Apple ship an Apple Music Android app? Color me surprised, usually they tend to be pretty insular.

Still, I don't see how a SPORT fits into Apple's TV strategy. I really don't see it happening under the current leadership, it makes no sense at all.

 

As Cable TV flounders, these streaming services are lookinig for the next best thing in terms of content in order to expand their foot print. Apple is competing with Youtube and a handfull of smaller (Sub-Hulus) in attempting to move up the rung - IMO.



#13 Risil

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Posted 02 October 2023 - 13:58

Still, I don't see how a SPORT fits into Apple's TV strategy. I really don't see it happening under the current leadership, it makes no sense at all.

 

Why is that?



#14 pRy

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Posted 02 October 2023 - 14:00

As long as F1TV remains an option as well, let them have it.

 
Apple would want exclusivity otherwise why bother?

#15 mclarensmps

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Posted 02 October 2023 - 14:21

 
Apple would want exclusivity otherwise why bother?

The rights would be different based on region, AFAIK. At least that's how EPL and UCL is handled. 



#16 Mark521

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Posted 02 October 2023 - 14:28

Ah, the eternal struggle between content (product) and distribution.



#17 H0R

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Posted 02 October 2023 - 14:51

Companies that will never see another Cent from me:

- Deutsche Bank

- Audi

- Apple

 

So if this happens I'll be back to

https://nta.ng



#18 alframsey

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Posted 02 October 2023 - 15:30

You do not currently need apple devices to stream Apple TV or any of the sports broadcast on Apple TV. As far as I’m aware this bid is for global rights eventually, so as current deals expire apple would pick them up. That’s what I read somewhere, I’ll try to find the article.

#19 Afterburner

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Posted 02 October 2023 - 15:33

alfaramsey and others are correct about not needing an Apple device to stream Apple TV+, which leads me to suspect that them using this as an instrument to sell more devices is not the motive here.

 

The Business Insider article is also light on key details, namely:

 

1) Are these the global or American broadcast rights? $2 billion/year seems ridiculously steep for US broadcast rights. By my math they'd need about 17 million additional annual US subscribers to turn a profit at that price. For that to happen F1 would need to have about 10 times its current US audience. Not going to happen, so from a US-rights-only perspective this makes zero sense.

 

2) I don't watch MLS but it looks like having Apple TV+ gives you only a $2 break/month when it comes to watching MLS, or $4/year? Why on Earth is anybody who wants to watch MLS not just getting their streaming from MLS directly? If F1TV Pro continues to exist in this same vein, why would anybody decide to add Apple TV+ to watch F1?



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#20 pup

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Posted 02 October 2023 - 15:36

Seems like Apple might have a conflict there with Netflix, not to mention that we’d probably never see the McLaren on screen again (Google, Dell, Klipsch, Alienware).

I think Eddie Cue at Apple has wanted to get his stunted little fingers into the F1 pie for forever, so this may just be him trying to leak his way into getting some interest from Apple’s board.

I think he’s also on the board of Ferrari, so another conflict.

Edited by pup, 02 October 2023 - 15:45.


#21 Ruusperi

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Posted 02 October 2023 - 15:36

If they ruin F1TV, it's back to illegal streams. Simple as that.



#22 kumo7

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Posted 02 October 2023 - 15:53

Apple wil make the F1 viewing experience in to another dimension, for sure, but those who (can afford to watch it) has to pay for it, other wise we will be forced to watch what is 1990 standard I assume. HD even perhaps.

Do we like it?

 

Eddie Cue

 

" Guys, this year we come up with new service of sporting program called F1-SE! Its much more compact than or F1-Pro casting program that allows you to watch drivers nose, blood pressure and listen to their scaremongers, F1-Se does have none of these, an excellently edited HD quality program, and that cost only 10 dollars per hour of supreme experiences! It is broadcasted through out the entire world, you can pay with Apple Card. You can watch on any device, but if you have an apple device, your viewing experience is expanded into fascinating graphs showing cornering speeds. " 



#23 tagy22

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Posted 02 October 2023 - 15:54

alfaramsey and others are correct about not needing an Apple device to stream Apple TV+, which leads me to suspect that them using this as an instrument to sell more devices is not the motive here.

 

The Business Insider article is also light on key details, namely:

 

1) Are these the global or American broadcast rights? $2 billion/year seems ridiculously steep for US broadcast rights. By my math they'd need about 17 million additional annual US subscribers to turn a profit at that price. For that to happen F1 would need to have about 10 times its current US audience. Not going to happen, so from a US-rights-only perspective this makes zero sense.

 

2) I don't watch MLS but it looks like having Apple TV+ gives you only a $2 break/month when it comes to watching MLS, or $4/year? Why on Earth is anybody who wants to watch MLS not just getting their streaming from MLS directly? If F1TV Pro continues to exist in this same vein, why would anybody decide to add Apple TV+ to watch F1?

 

I'm pretty sure the only place to stream MLS is through Apple TV, you don't need to subscribe to the rest of their content but it's $2/month cheaper if you do.

 

If this happens, there is no way you will have a choice between F1TV Pro or Apple TV imo.



#24 KWSN - DSM

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Posted 02 October 2023 - 16:16

I feel ominous for us in the US.



#25 aportinga

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Posted 02 October 2023 - 16:20

Like I mentioned - I read on another article that streaming rights would be exclusive to Apple and only for for new markets. If that is the case, the the F1TV app is still in play.


Edited by aportinga, 02 October 2023 - 16:20.


#26 Maustinsj

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Posted 02 October 2023 - 16:21

I feel ominous for us in the US.

 

Eh?



#27 KWSN - DSM

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Posted 02 October 2023 - 16:25

Eh?

 

F1 will eventually be behind the paywall called Apple TV, as well most likely commentated by someone who should not.

 

Ominous.



#28 vlado

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Posted 02 October 2023 - 16:33

F1 will eventually be behind the paywall called Apple TV, as well most likely commentated by someone who should not.

Ominous.


Yes, not good.

#29 KWSN - DSM

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Posted 02 October 2023 - 16:45

Usd 2 billion is LOW for owning sports rights in the US.

 

MLB is $470 per season until 2028

NFL is $1 billion per season not sure how long is running

NBA is currently on a contract worth $24 billion not sure how long is running



#30 MikeTekRacing

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Posted 02 October 2023 - 16:53

Amazon bought Thursday Night Football rights, Google bought Sunday Ticket for NFL, Apple bought MLS and I think some MLB.

The software part of it is miles better than any TV provider software - since moving to YoutubeTV I can't think of ever going back to streaming from a cable company.



#31 EvilPhil II

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Posted 02 October 2023 - 17:02

As long as I don't need an Apple device to watch F1... I don't know what's worse, to have to pay Sky, or to have to throw away my PC and Android TV to watch F1.


You can now get the Apple TV app on Android and Google TV platforms. I suspect the phones and devices too.

#32 Deeq

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Posted 02 October 2023 - 17:14

You can now get the Apple TV app on Android and Google TV platforms. I suspect the phones and devices too.

But you have to have an iTunes account to activate said app..
Atleast it was a year ago, i did gave upp only having android devices* & and not wanting to install iTunes in my pc
Did that iTunes straightjacked change?

*) ancient pc too.

#33 Afterburner

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Posted 02 October 2023 - 17:16

For those of us who watch sports on Apple TV+, could you perhaps offer us your perspective on the quality of coverage, so that we have an accurate basis on which to form our opinions of what to expect should Apple actually purchase the broadcast rights?



#34 aportinga

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Posted 02 October 2023 - 17:21

I don't think the owners have done a poor job so far - I would imgine things will be fine.



#35 KWSN - DSM

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Posted 02 October 2023 - 17:35

Problem or whatever you want to call it, is that each streaming service come at a cost.

Verizon Internet package $ 69.99
Prime                    $ 16.50
Hulu TV                  $ 79.00
Netflix                  $ 11.99
Peacock                  $  4.99
Brit-box                 $  7.99
Apple TV                 $  6.99

I think (hope) we do not have more subscriptions - It is still less than what we used to pay Cablevision, but crawling up there with zero expectation that it will get anything but more expensive - Sadly where ever they end up placing F1, if behind a paywall I will pay it, same as what I will do if I lose the access I currently have from the above.



#36 New Britain

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Posted 02 October 2023 - 17:39

Do you need to buy an Apple device to watch their streaming? I have no idea but I do have Apple Music on Android.

It seems very unlikely that, if Apple were to own the broadcast rights to F1, they would be able to restrict access to only users of their own devices. The competition authorities would go mental if what is literally the world's richest company were to attempt a vertical monopoly. It's one thing to own the broadcast rights - somebody has to own them - and charge for that, but another to undermine your competition in the production and sale of physical devices or software servies by limiting access to something that has characteristics of a unique public good.

 

If Liberty are thinking of selling to Apple, they would also (one expects) have to consider the effect on the teams. Many of the bigger-money sponsors on the current grid are direct competitors of Apple's. They might not particularly mind if the races are accessible through an Apple service, but if Apple were to exploit an exclusive right to broadcast as a means of forcing customers away from Dell, Microsoft, Google, Hewlett Packard, et al., the sponsors would not be pleased. The teams do not have a vote on the matter, only Liberty does, but their voices would be heard.



#37 AustinF1

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Posted 02 October 2023 - 17:54

F1 will eventually be behind the paywall called Apple TV, as well most likely commentated by someone who should not.

 

Ominous.

Yep. I've seen enough of their sports coverage to know it's doubtful at best that they'd elevate F1 coverage in any way. More likely the opposite. I'm more than happy with what we have now - SkyF1 rebroadcast on ESPN, which I already have.



#38 AustinF1

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Posted 02 October 2023 - 17:56

Amazon bought Thursday Night Football rights, Google bought Sunday Ticket for NFL, Apple bought MLS and I think some MLB.

The software part of it is miles better than any TV provider software - since moving to YoutubeTV I can't think of ever going back to streaming from a cable company.

YTTV is awesome & has by far the best DVR I've ever seen. It also has ESPN, which means I don't have to get another streaming service - unless Apple buys F1 rights.



#39 AustinF1

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Posted 02 October 2023 - 17:59

But you have to have an iTunes account to activate said app..
Atleast it was a year ago, i did gave upp only having android devices* & and not wanting to install iTunes in my pc
Did that iTunes straightjacked change?

*) ancient pc too.

I'm not what anyone would ever call and Apple fan. I detest the company, but Apple Music works perfectly on my Android phone, using my iTunes account. (I get Apple Music free through my Verizon account. Otherwise, I'd just get Spotify)



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#40 Stephane

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Posted 02 October 2023 - 18:44

As a lucky citizen of a country where F1 is still on FTA television, I don't like this

#41 RacingFan10

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Posted 02 October 2023 - 19:00

No please, no, I hope this doesn't become true. Such a greedy, nasty company, ticket prices would double and so would the TV subscription.



#42 RacingSmoke

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Posted 02 October 2023 - 19:12

I might be the only one not that disgusted and rather intrigued at the idea of Apple getting these rights.



#43 Beri

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Posted 02 October 2023 - 19:37

Apple would want exclusivity otherwise why bother?


If they want world exclusivity, 2 billion dollars sounds not much to me. For the Netherlands alone, ViaPlay pays about 30 million a year. And Sky pays about 1.2 billion for 6 years for the British coverage. Which comes down to 200 million a year. For those two countries, that's almost 250 million a year alone. Count all the other (big) countries like France (60 million), Italy (65 million) and Germany (50 million) and suddenly the yearly amount adds up to almost half a billion alone. Without the numerous other countries, think of Portugal, Brazil, the Scandinavian countries, etcetera who also pay a lot.
So you get that I think 2 billion seems a bit scarce for world exclusivity.

#44 Stephane

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Posted 02 October 2023 - 20:01

And even more when they want to kill F1tv in the process



#45 loki

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Posted 02 October 2023 - 20:33

Apple would pick up all existing  broadcast deals by 2029 according to SI.  Looks like the whole enchilada, TV and streaming at a potential cost of $2 bil/year.

 

https://www.si.com/f...ing-rights-lm22



#46 Fastcake

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Posted 02 October 2023 - 20:58

I recall there being a few rumours about Apple buying into F1 (the whole shebang) when CVC were looking for an exit. Never made much sense to me buying FOM and having to do the dirty business of helping to run a riotous sport, but taking on the global broadcast rights? Now they've got a global streaming platform and they're involved in sport, from a business sense I see the attraction.

 

Whether that will be good for the sport is another question.

 

As long as F1TV remains an option as well, let them have it.

I doubt it will, but at current prices Apple TV appears cheaper. So if that's the way you're watching, this might actually be a benefit.



#47 jonpollak

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Posted 02 October 2023 - 21:28

Y’all need to calm down.

This is a PR/Marketing play called Throw and Stick.

That said, 2029 is achievable.
But will it be the draw it is today ?

Time moves quickly

Jp

#48 MikeTekRacing

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Posted 02 October 2023 - 21:46

But you have to have an iTunes account to activate said app..
Atleast it was a year ago, i did gave upp only having android devices* & and not wanting to install iTunes in my pc
Did that iTunes straightjacked change?

*) ancient pc too.

is the goal post move now from "apple wants us to buy hardware" to "you have to have an apple account"?

Any app requires an account - how is that a problem? You need an account to sign in to Netflix, to Hulu, to anything.

You need an appleid to sign it to anything with Apple. 



#49 Clatter

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Posted 02 October 2023 - 21:57

No please, no, I hope this doesn't become true. Such a greedy, nasty company, ticket prices would double and so would the TV subscription.

 


Why would ticket prices double?

#50 Stephane

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Posted 02 October 2023 - 22:14

they are already too expensive anyway.