TV companies seeking cheaper rights from FIA/FOM

[Super Tourer]

Here we go again. To pile more agony onto F1's current situation, some of the TV companies are believed to be driving a hard bargain when it comes to paying for future rights.

Hit by falling F1 viewing figures and subsequently unhappy advertisers, French channel TF1 is believed to be offering 50% less than it previously paid for F1 TV rights.It's worth noting that it's believed that Toyota was seeking a refund of some of the money it paid to sponsor ITV's F1 coverage.

This surely confirms the urgency for F1 to cut costs, as they face the prospect of a reduction of up to 50% in TV revenue, their main source of income.....

From:www.pitpass.com
http://www.pitpass.com/news2/news.cfm?newsid=4493

While in France and Germany..
20-01-2003

In addition to fears that TV coverage of the Australian GP has yet to be agreed, there are concerns about coverage of the sport in mainland Europe.
According to L'Equipe, Formula One Management has not yet secured a TV network in France for the next 3-year term (2003-2005).

The last rights holder, TF1, is understood to have made an offer of 50% less than what they've been paying the last few years, which is believed to have been in the region of £15.8m per annum.

The two other major broadcasters, France Television and M6, have decided to not bid against TF1, at least for now.

According to our sources it's believed that M6 might well end-up with the TV Rights, TF1 being extremely disappointed with F1™ viewing figures, and subsequently falling revenues, in the last couple of seasons.

This comes on the back of the dropping of Ecclestone's Digital F1 which had been broadcast, and largely paid for, by Canal+.

It's pitpass' understanding that a similar situation exists in Germany where, current F1™ broadcaster, RTL is believed to be seeking major changes to FOM's current proposal.

With advertising revenue down and F1™ not enjoying the most favourable of coverage in the media it would appear that with regards TV it's a buyers market.

As ever it is the fans that will lose out, though sponsors too will be far from happy if potential customers are unable to see the results of all that investment.

Meanwhile there is even more trouble a foot in Australia over F1 coverage....

http://www.pitpass.com/news2/news.cfm?newsid=4492

[f1manoz]

Considering the prices TV companies are expected to pay for second-rate coverage at best, and the fact F1 was so utterly boring last year viewing figures dropped consistently after every race, I say they should get the price cut. Who knows what this year will bring...

To pile more agony onto F1's current situation

The only people to blame are the people who run F1 who put it into this position.

[Stephen Green]

One word my friends..."GREED"

[Asp]

They shouldn't have got rid of the Bakerville feed. Companies would have paid good money to get that.

RE: France, TF1 haven't done that good a coverage - you think ITV was bad with prime time GP's - they only entered Indy 2001 half-way through because of the 6 O'Clock news. M6 can probably spare more time on it and maybe do what Channel4 have done for the WRC over this side of the Channel.

[Super Tourer]

F1 is now seeing exactly what football has and will continue to experience. It clearly is chickens coming home to roost.

Not long ago the competition for football TV rights was so great that the Premier League and FA could sit back and see how much money would be thrown at them.

Now the noughts have disappeared off the page and many clubs in the lower league face financial ruin or uncertainty, with many of them discovering (too late) that they have either already spent money before they've received it, or are paying out more in wages and costs than their income, coupled with the struggle to sell club sponsorship deals......sound familiar...

Take Kirch, who paid heavily for F1 and other sporting TV rights, which are now worth a fraction.

The great irony of this is that the terrestrial broadcaster's who were brushed aside in the rush to buy rights, now stand perfectly placed to pick up a bargain. It's already rumoured that the BBC are looking at bidding for the UK TV rights to F1 when ITV's deal expires. Media experts are confident that the boot will now be on the other foot, and the Beeb will easily be able to out bid even the ITV companies, who are under increasing pressure from shareholders, facing falling advertising revenue and audience share.

So who knows, maybe (in the UK) we'll get to see better racing, on terrestrial TV with no adverts. It could happen, but having said that the BBC will have to improve on their coverage of the Rockingham CART race......

[JonesF1]

The TV companies hurt themselves. The quality of coverage in most countries is average at best. Considering the money they paid and how important F1 is you'd figure they would have done a better job but they havent. I hope bernie sends their crews all packing and just gives us the super feed.

[Super Tourer]

I still think Bernie is unsure why pay per view didn't work for him. I am sure he thought that there was a market for a premium product.

If we look at other 'business models' where PPV has been successful, like boxing - here PPV has been used to screen a high profile fight exclusively - with no other live coverage available. So die hard fight fans who had to see the fight live, had no choice but to pay.

For F1, I think that FOM/FIA had to maintain terrestrial TV (or free air) coverage, this made Bernie's channel a 'premium product' not an exclusive one. Despite many people's grumbles over the 'old' TV coverage, it appears that insufficient fans were prepared to buy the premuim offering, when 'free' live coverage was available.

Ironically, going totally PPV is a massive risk and will never happen, as the car makers/major sponsors would pull out immediately without guaranteed free to air coverage.

Which, instead of putting Bernie's TV dream onto the back burner, has totally removed it from the stove! Unless his TV channel can do the deal to be the 'host' broadcaster at all events, which will still have to be free to air, in anycase.

[Jordi]

Here TV3 (Catalan TV) was the only one to buy the rights here in 2002. A large part of Spain was left without coverage (fortunately I live in Catalonia). TV3 made a deal the friday of the Australian GP...

For what was being shown on normal TV, it certainly was expensive for the TV channels!

[Ian-S]

Well, just to throw my cat in with the birds, Germany PPV company Premiere World (owned by Kirch & the Banks) is still advertising their "Interactive PPV" service for F1 and saying it will be on air in Aus.

Their site has been updated many times since Bernie stopped the service, so either they know something the rest of us don't, or they've bought a lottery ticket