Miami GB
Formula 1 is making a new deal over television rights in the United States, and thanks to the sudden popularity of the sport there, the demand for broadcasting rights has peaked. Four bidders are vying for a contract that Liberty Media hopes to increase twentyfold.
according to interested in tradeESPN faces NBCUniversal, Amazon, and Netflix to take over coverage of Formula 1 starting in 2023. ESPN itself has bid $70 million (currently paying $5 million), but Liberty Media is now seeking $100 million annually.
All four companies are motivated to invest in Formula 1. ESPN and Netflix deserve credit that the popularity of the series is so high. ESPN might not pay you much and using Sky Sports in the UK saves you some money, but the races are free, plus minimal commercials during training and qualification. This has nurtured a lot of goodwill from American Formula One fans, and with a plan in place to keep the broadcast commercial-free, most fans will likely want to keep things as is.
Netflix doesn’t have live sports, but it made a huge impact on Formula 1 with its Drive to Survive series. While the show is hugely dramatic and has upset some drivers and hardcore fans, the plot and conflict have been a prelude to many new fans to actually watch the races. While Netflix management talked about bidding on F1 rights last year, the company is undergoing a slight transformation due to lower stock prices and declining subscriber numbers. Since, in addition to Apple and Amazon buying the sports rights, it makes sense to pursue sports in which they have a closer relationship to begin their forays into live sports.
But ESPN is in the lead to retain the rights. Unless Amazon and Netflix mess up the bank and deliver crazy cash, they’re in for an uphill battle over F1TV. Liberty Media kept the OTT rights to its streaming service, so if another streaming service offered the races, that would nullify the purpose of the F1TV Pro, which costs $80 a year in the US.
$100 million might sound like a lot of money to buy broadcast rights, but the major sports leagues in North America cost about 20 times that, and none of them are exclusive to both the NBA and the NFL.
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