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Old 22 Oct 2017, 14:33 (Ref:3775628)   #3
NaBUru38
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As a major sport, F1 earns a lot of money from both sponsors and broadcasting rights.

We saw Bernie Ecclestone deciding to switch from free to pay TV, therefore prioritising broadcasting rights over sponsors. Of course, that's because he had control over tv money and not sponsor money.

As you know, today there's more entertainment options available than ever. There's pay TV, cinema, Netflix, YouTube, videogames, social networks, live shows, nightclubs, porn... Getting and keeping fans is harder than ever, and F1 did the opposite for a long while.

It's easy to try to get more fans by offering free access. F1, like football, can't afford that. But there are multiple business models, and the market changes really quickly.

F1 wants to offer an over-the-top (standalone) streaming service. That's great, since people can sign up no matter any other entertainment options they have.

But how will F1 convince a casual sports fan in Lyon, Guadalajara, Istanbul or Perth to check an F1 race and sign up for that service? netflix has done it, but mny other have failed. The established platforms (Sky, DirecTV, Vodafone, Telefónica) have a huge reach, and cannot be ignored to find new customers.

That's why it's interesting that F1 is negotiating with Netflix. They have refused to offer sports, as they are live-based, unlike films, so they lose value very quickly. But I doubt that F1 will tell Netflix to add race broadcasts to all subscribers, as it would be too expensive. Instead, I think that Netflix would offer a standalone package. So Netflix's job would be to promote the F1 package to its huge, worldwide customer base.
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