Remember when Apple Inc. (AAPL) won the U.S. rights to Formula 1 starting in 2026? Well, the first race is in the books, and it looks like the tech giant might be onto something. The season-opening Australian Grand Prix, now exclusive to Apple TV+ for American viewers, just set a record. According to reports, more people watched it on Apple's platform than tuned into Walt Disney Co's (DIS) ESPN for the same race last year.
That's a pretty good start for a deal that hasn't even fully kicked off yet. Apple's Senior VP of Services, Eddy Cue, told The Hollywood Reporter that the 2026 season is "off to a strong start," with viewership up year-over-year and exceeding both Apple and F1's expectations. He also mentioned launching with "enhanced viewing experiences" like 4K with Dolby Vision. So, Apple isn't just broadcasting races; it's trying to make them look really, really good on your screen.
Now, it's just one race. But it's a race that broke the previous U.S. viewership record of 1.1 million set on ESPN in 2025. Apple didn't release its exact number, but saying it was "up" from that figure is a clear win. This follows a massive 2025 season for F1 on ESPN, which averaged a record 1.3 million viewers per race. The momentum seems to be carrying over, helped by factors like the new American Cadillac F1 team, the blockbuster success of 2025's "F1: The Movie" (which grossed over $633 million worldwide), and a more dramatic championship battle. After four straight titles by Max Verstappen, Lando Norris snatched the crown last season in a final-race showdown—a far cry from the years when the championship was decided with races to spare.
Why Apple Wants to Be in the Driver's Seat
So why does Apple care about fast cars going around in circles? It's all about the streaming business. Apple TV+ has been posting operating losses. Live sports, starting with Major League Soccer and Major League Baseball and now adding Formula 1, are seen as a key to turning that around. Subscribers pay $12.99 a month (up from $9.99 since August 2025), and all these sports are included.
The big question is whether F1 is bringing in new subscribers or just getting existing ones to watch more. The answer is probably both. Cue noted that the Australian Grand Prix weekend coincided with "the biggest week ever for the Apple Sports app since its launch."
Gene Munster, Managing Partner at Deepwater Asset Management, has pointed to the Apple TV+ price increase as a "small example of a big opportunity." He estimates the hike could add about $430 million in "high margin revenue." That's a drop in the bucket for Apple's overall sales—maybe 0.1% of next year's expected revenue—but it's part of a larger strategy to squeeze more money from each device user through services and subscriptions.
Munster believes Apple's goal is to "gradually close the gap between Apple TV+ expenses and revenue," eventually making the streaming service profitable. He estimates Apple has about 60 million paid subscribers, with many on discounted plans, leading to an average revenue of around $6.50 per subscriber per month.
Interestingly, the price hike comes ahead of rumors about an ad-supported plan. If Apple introduces a cheaper, ad-backed tier after raising prices by 30%, it could convince some subscribers to switch. If advertising rates are strong, that might actually be more lucrative for Apple in the long run.
What It Means for the Stock
For investors, this is a long-term narrative play. A single race win doesn't move the needle on its own, but it validates Apple's bet on live sports as a subscriber draw. Apple shares were trading around $252.56 recently. The stock is down about 7% year-to-date in 2026 but remains up over 20% from a year ago, with a 52-week range between $169.21 and $288.61.
The early success of the F1 deal suggests that the value of these broadcasting rights might have been underestimated. If Apple can keep viewership high, convert viewers into loyal subscribers, and use sports to finally make its streaming service profitable, then this race was more than just a good start—it was the first lap in a much longer, and potentially rewarding, journey.
