Apple Secures U.S. F1 Streaming Rights and Services Revenue Tops $31 Billion
AAPL•Apple secured a five-year U.S. Formula One streaming deal for Apple TV but cannot bid in key European markets until Sky’s UK rights expire in 2034, Canal+’s France rights in 2029 and DAZN’s Spain rights in 2026. Its Services segment generated $31 billion last quarter and could add $13 per share.
1. U.S. Formula One Streaming Deal
Apple secured a five-year U.S. streaming agreement to broadcast Formula One races on Apple TV as part of its live sports strategy. The deal positions Apple in a rapidly growing segment but restricts bidding in other regions until existing rights cycles lapse.
2. European Rights Cycle Constraints
Key European F1 media rights have staggered expirations: Sky holds UK rights through 2034, Canal+ covers France until 2029, and DAZN retains Spanish rights until end of 2026. This fragmentation forces Apple to pursue a region-by-region strategy, potentially delaying a full global rollout.
3. Services Segment Performance and Valuation
Apple's Services division generated $31 billion in quarterly revenue, marking continued double-digit growth and prompting analysts to suggest a potential $13 per share valuation uplift if reappraised. Elevated margins and recurring subscriptions underpin this segment’s strategic importance for future profit expansion.
