Formula One is making a new TV rights deal in the United States, and thanks to the sport's sudden popularity there, the demand for broadcast rights is at an all-time high. Four bidders are in contention for a contract that Liberty Media hopes to increase twentyfold.
Formula One is making a new TV rights deal in the United States, and thanks to the sport's sudden popularity there, the demand for broadcast rights is at an all-time high. Four bidders are in contention for a contract that Liberty Media hopes to increase twentyfold.
According to the , ESPN is up against NBCUniversal, Amazon and Netflix to take over coverage of Formula 1 starting in 2023. ESPN itself made an offer of USD 70 million (it currently pays USD 5 million), but Liberty Media is now seeking USD 100 million per year.
There is motivation from all four companies to invest in Formula 1. ESPN and Netflix deserve credit for the category's popularity being so high. ESPN may not be paying much and using the Sky Sports feed in the UK saves some money, but the races are free, plus minimal commercials during practice and qualifying. This has cultivated a lot of goodwill from US F1 fans, and with the plan to keep the broadcasts commercial-free, most fans probably want to keep things as they are.
Netflix doesn't have live sports, but they have been a big influence on Formula 1 with their Drive to Survive series. While the show is heavily dramatized and has upset some drivers and more hard core fans, the intrigue and conflict has served as an introduction to many new fans to actually watching the races. Although Netflix management talked about bidding for the F1 rights last year, the company is undergoing a bit of a transformation due to falling stock prices and declining subscriber numbers. Since other than Apple and Amazon buying sports rights, it makes sense to go after the sport they have the closest relationship with to begin their foray into live sports.
But ESPN is in pole position to keep the rights. Unless Amazon and Netflix really 'blow the bank' and offer crazy money, they are fighting an uphill battle due to F1TV. Liberty Media kept the OTT rights for its own streaming service, so if another streaming service showed the races, that would defeat the purpose of F1TV Pro, which in the US costs USD 80 per year.
USD 100 million may seem like a lot of money to buy streaming rights, but the major US sports leagues cost about 20 times that and none have exclusivity for either the NBA or the NFL.