A controversial deal between F1 and Apple TV in the works

Formula 1 has been a global sport almost through its inception and the first grand prix. It does not need special introductions as we all know that it gathers up more than 300,000 of live spectators and 70 million people watching every race on TV. It was inevitable that great companies like Apple, would become interested in adding it to their sport portfolios. And this time with a rather juicy deal that has already sparked heated discussions. Not to mention the implications on the live feeds, that all of the top Asian and European bookmakers have incorporated into their sites.

What is the proposal for F1 and Apple TV?

Apple is a well-known technological giant that also doesn’t need introductions. We have all used or craved an iPhone. What most people do not know about is that since 2007 they have launched a module that allows people to watch TV over their smartphones or computers. At this time the company is at the verge of launching a new version of the interface, and they are more than willing to add a venture that will attract all of the aforementioned millions of people.

Their proposal to FIA amounts to 2 billion dollars for each of the 7 years of the duration of the deal, which demands the exclusive rights to broadcast the races. That’s double the money that the sport is receiving now from ESPN (holder of said rights until 2025). Of course, it is to be put to effect after the current contract expires.

The controversy

At first glance, it’s a good agreement between F1 and Apple TV. One side gets the rights for exclusive management and the other side gets a lot of money in payment. However, there are issues hidden behind the surface and they could lead to a negative response. The precise terms that offer gradual increase of the percentage of exclusivity do not really matter.

Marketing specialist Chris Woerts brought up the first problem. Any agreement that includes in its provisions that one company will have the entire package, will eventually eliminate all competition. And that will lead to an increase of prices and, therefore, the subscription fees. Unless of course, it’s part of the plan from the part of Formula One Management to make the existing competition come back with even more lucrative offers.

What about the common people?

An agreement between F1 and Apple TV means that in order to be able to watch the races, it would mean paying a subscription. This already falls into legislative problems. There are countries where the practice is forbidden and there are only open channels. In fact, it’s the same countries that also deploy restrictions on the internet access. Does this mean that they will be excluded and that the residents will not be able to see a grand prix? Or does it mean that Apple will charge the whole country with a fee? It also, of course, raises the question of how much will the provider increase the charges for the rest of the viewers. It is the standard practice in such a case.

Another issue comes with the sponsors of the constructors. If the audience increases so will their sales. However, if the aforementioned concerns prevail, then they will definitely be at a disadvantage. What will they do? Will they boycott a possible deal between F1 and Apple TV? And will that be a tombstone for such a plan?

There surely are plenty to consider in this one. It doesn’t matter what everyone else is thinking. What matters is what FIA is thinking and what are its intentions. The money is definitely good. But is it enough of a reason to disregard all other concerns? And we haven’t discussed at all on how the drivers themselves, or the constructors for that matter, feel about it. Probably another null point as they have to abide by what their ruling body decides. One thing is certain. There will be a lot of debates on the issue while all the punters will be holding their breath in reference to the live betting issues for those who open an account via a betting agent.