Netflix's Potential Impact on How We Consume Formula 1 Broadcasts
Netflix might be diving deeper into the world of Formula 1, potentially bagging the live broadcasting rights for the sport in the US. According to reports from The Athletic and Autosport, Netflix is considering bidding for these rights, with an initial focus on the US market[1][2].
The timing of these reports is intriguing, coming about a month before the seventh season of Formula 1: Drive to Survive is set for release on March 7[1]. This acclaimed Netflix series has played a pivotal role in increasing interest in Formula 1 in the US, with Nielsen figures suggesting a 10 percent growth in the fan base since the show's debut in 2019[1].
ESPN currently holds the broadcasting rights in the US, having signed a three-year extension in 2022, with these rights up for grabs at the end of the season[1]. Audiences have grown significantly over the years, averaging over 550,000 viewers per race in 2015 and peaking at 1.2 million in 2022 before slightly declining to 1.1 million in 2023[1].
Netflix's interest in Formula 1 live broadcasting can be attributed to its growing presence in the live sports arena. The streaming giant appointed Kate Jackson, ESPN's vice-president of production, as its new director of sports to oversee these projects[1]. In 2021, Netflixbroke records by paying $150 million to stream two NFL games on Christmas Day, attracting a staggering 24.3 million and 24.1 million viewers respectively[1].
A successful bid for Formula 1 broadcasting rights would have far-reaching implications, potentially impacting viewing habits and the sport's reach beyond the US borders[1]. Global TV rights account for $1 billion of Formula 1's overall revenue of $3.2 billion[1]. The current system, established by Bernie Ecclestone, involves selling these rights to individual broadcasters in each country, who provide their own commentary and analysis teams[1].
However, this system can lead to exclusivity, as seen in the UK and Germany, where Sky holds exclusive rights until the end of the 2029 season[1]. This prevents the use of Formula 1's over-the-top streaming platform, F1 TV Pro, in these countries, while it remains available in the US, offering unedited radio communication between drivers and teams[1].
The potential shift to Netflix as a broadcaster could open up behind-the-scenes access, currently restricted to Drive to Survive, to a wider audience[1]. The complexity and global nature of the bid might deter some competitors, but Netflix's commitment to live sports and its relationship with Formula 1 through Drive to Survive seem to make it a formidable contender[1].
Enrichment Data:Netflix's potential bid for Formula 1 live broadcasting rights in the US is a significant development in the evolving landscape of sports broadcasting. The current contract with ESPN is set to expire at the end of the 2025 season, opening up an opportunity for Netflix to enter the scene[1][3][4].
Netflix's interest in the bid can be attributed to its existing relationship with Formula 1 through Drive to Survive and its growing commitment to live sports broadcasting[1]. This push into live sports has already seen Netflix secure deals with major events such as Mike Tyson vs Jake Paul boxing match and WWE events[2][3].
Alongside Netflix, Amazon and Apple are also reportedly interested in bidding for the rights, although the complexity of a global deal might deter some bidders[4]. Netflix's bid is seen as a serious challenge to ESPN's current arrangement, given the significant growth in Formula 1's popularity in the US due to Drive to Survive[1][2][5].
Netflix's potential acquisition of Formula 1 live broadcasting rights in the US could significantly impact the business side of sports, potentially attracting sportsmoney from a broader audience. The streaming giant's interest in live sports, as demonstrated by its record-breaking NFL streaming deal in 2021, further strengthens its position in this potential bid.
