Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Formula One has opened negotiations with broadcaster ESPN over its next US media rights deal, with one year left on the existing contract, as it seeks to cash in on its growing popularity in the country.
The partners are locked in talks during an exclusivity period that expires before the end of the year, according to two people with direct knowledge of the matter.
F1’s next broadcasting deal will test the global motor racing series’ appeal in the US, as sports compete to increase the value of their media rights amid a shift from linear television to streaming platforms.
Even if an agreement is not reached by the year-end, Liberty Media-owned F1 and Disney’s ESPN could still strike a deal next year, the people said. That would, however, expose the broadcaster to competition from rivals for the screening rights, they added. F1 and ESPN declined to comment on the talks.
The existing deal, worth roughly $85mn a year to F1, runs until the end of next season — the result of a three-year extension agreed in 2022. F1 is targeting a significant increase in the next cycle, according to one of the people. Globally, media rights accounted for roughly $1bn of F1’s $3.2bn total revenues in 2023.
F1 has increased its US audience since it returned to ESPN in 2018, when it averaged 554,000 viewers a race. But, after peaking at 1.2mn viewers a race in 2022, the average fell slightly to 1.1mn in 2023.
This season, the figures for the first 20 races are slightly up on last year, says John Suchenski, senior director for programming and acquisitions at ESPN — helped by the fact that 2024 is proving a more competitive season than others in recent times.
“Last year was slightly down but it was coming off a record season,” he notes. “We’re pacing upwards from last year. It’s not necessarily growing at the same pace as it was early on [but] we think there’s room to grow.”
The Miami GP in May attracted an average of 3.1mn viewers, a record for F1 on live US television, according to the broadcaster.
Live sport remains one of the few spectacles that can unite viewers, giving those with premium content — such as F1 — a strong hand in negotiations with traditional broadcasters and digital platforms. Amazon’s Prime Video, Apple, and Netflix have all now joined the competition for sports rights.
Under Liberty Media’s ownership, F1 has increased its US presence to three races annually, by adding Miami and Las Vegas to its calendar. And the sport has won over new fans with Formula 1: Drive to Survive, a behind-the-scenes Netflix series that gives fans unprecedented access to drivers and other details of the high-technology sport.
F1TV, the sport’s own streaming service, is another vital piece of the company’s media strategy. This so-called pro service, which is available in some countries, such as the US and India, allows subscribers in those markets to choose the way the follow the races as they happen. Options include accessing feed from a car’s onboard cameras or from team radios.
“F1 TV is an important part of our business; it gives us a direct connection with the Formula One fan,” says Ian Holmes, F1’s director of media rights, adding: “What we’ve found . . . is that it’s not cannibalistic: in many cases it’s additive.” He says the new US media deal will be the “most significant” one coming up next year.
For viewers this season, the sport has certainly provided more drama. Although Red Bull’s Max Verstappen is favourite to win his fourth consecutive drivers’ title, it has not been the procession that many feared at the start of the year with seven drivers winning races. Meanwhile, McLaren and Ferrari are battling to win the constructors’ championship, having overtaken the once-dominant Red Bull in the team standings.
Expectations are high that next season will turn out to be even more competitive ahead of F1’s regular overhaul of regulations, in 2026. Broadcasters are also excited by a new storyline next season, with seven-time world champion Sir Lewis Hamilton set to join Italian team Ferrari.
“It’s a great story for us,” says Billy McGinty, director of F1 at UK broadcaster Sky. “Lewis at Ferrari is a fantastic way for him probably to finish his career but also for us to tell a story about his career and complete the narrative on him.
“It’s a team with great history,” he points out. “If Lewis can go there and win races and win a championship, it would be an incredible, incredible story.”
