Formula One Management boss Stefano Domenicali has offered insight into discussions surrounding F1’s next broadcast agreement in the United States.
Domenicali revealed that F1TV will feature prominently as it looks to open up the sport among a growing fanbase.
F1 reveals goals for next US television deal
The current broadcast agreement in the United States, held by ESPN, is set to expire at the end of the year.
That arrangement sees US fans receive Sky Sports’ coverage with five races aired on ABC, including the Monaco Grand Prix.
ESPN is reportedly vying to retain broadcast rights, with suggestions of an offer worth around $90 million per annum.
However, Apple is also interested with suggestions it has bid as much as $150 million per annum.
The United States has been a strong growth region for F1 in recent years, with a significant increase in social media following in particular.
Four of the 24 events are held on US soil, complemented by events in Canada and Mexico City.
Liberty Media, which owns F1’s commercial rights, is also the promoter of the Las Vegas Grand Prix, highlighting the efforts going into tapping into the US market.
“We are progressing our negotiations,” Domenicali said of the next US broadcast agreement.
“Of course, there are weeks in front of us, we have not a great rush to finalise everything, because we want to make sure that we find the right solutions.
“One thing that I definitely can add is that we are looking, I would say, a mid-term, and not long-term, mid-term agreement, because we believe that we are still in the position that our growth will have the chance to even further to be negotiated better in the future.
“But everything is looking good.”
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Key among Domenicali’s is the balance between exposure and revenue. While subscription services can offer a greater value to the bottom line, having the broadcast more accessible with a lower-paying broadcaster has the potential to expose F1 to new fans and add value down the line.
F1TV will also play a significant role in any new agreement.
“F1 TV is, and has to be, and it will, be part of the of the package of what we are negotiating now into the future,” Domenicali said.
“This is absolutely relevant, because, as you have seen, the numbers are growing. There is an incredible opportunity for us to stay connected with our, let’s say, fan base that is maturing and is growing in terms of attention, in terms of knowledge.”
Precisely how F1 TV will be made available is unclear, with its utilisation differing in each market based on each broadcasting agreement.
That sees it range from being fully available as an over-the-top service, to being bundled with a broadcaster subscription.
Should FOM opt to sign a deal with a streaming service, that could see its in-house product in competition with its broadcaster.
“The reality is in the world that we live on, and it’s not sort of one or the other,” reasoned Liberty Media’s CEO, Derek Chang.
“You’ve got to just make things available to consumers and to fans wherever they want to engage with you.
“So that’s, I think what the overarching goal always is, is to try to provide your content in as many places as possible that consumers and fans can easily access.”
FOM has seen positive growth with its in-house offering and content, with race highlights on its YouTube channel up 30 per cent on last year. Live television audiences in the United States are also up seven percent, with seven races setting viewership records.
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