Netflix Feels the Need for Live Speed
Martyn Ziegler & Molly Hudson
What's that in the rearview mirror? It's Netflix's claims that they're not interested in live sports. As Martyn Ziegler and Molly Hudson report:
Netflix is considering a bid to cash in on the success of its Drive to Survive series by trying to secure the US broadcast rights to Formula 1.
It would be the first significant foray into buying season-long mainstream sports rights by the streaming platform, but there has been huge growth in F1 fan numbers in the United States — which has three of the 24 F1 races — and the rights would be relatively cheap.
ESPN holds the rights at the moment under a $90million (£72.5million) deal, but it is understood that the broadcaster’s exclusivity period to negotiate a new contract with F1 has just expired, which has opened the market for bids from any other interested party. Industry sources have said that Netflix is expected to bid for the rights starting from the 2026 season.
Three years ago, I was somewhat surprised that Netflix didn't lock up these rights given their success with Drive to Survive. But then again, they were still adamant that live sports wasn't a part of their plan and those rights got a lot more expensive, fast thanks to Netflix's behind-the-scenes show. But a lot has changed in a few short years. Now Netflix is not only doing some live sports, they just did two NFL games! And they were a big success. As is their foray into WWE. And the biggest of all may have been their Mike Tyson/Jake Paul boxing match, which drove a lot of viewers and most importantly, subscribers, despite the fact that the fight itself wasn't any good (though the undercard bout was) and there were technical glitches (which may have actually helped Netflix ahead of the NFL games).
Also, as I wrote in a newsletter blurb back in November:
Formula One and ESPN are starting negotiation talks to extend their deal – with F1 wanting a significant increase despite viewing numbers that have stagnated a bit in the past couple years. Might Netflix take the opportunity to zoom in to secure rights to a sport they've helped popularize now that they're actually at least somewhat interested in sports – and ads? If not, and if Disney lets the exclusive negotiating window lapse, Amazon seems primed to swoop in here, as they tried to last time... Apple? [FT 🔒]
Well, now that ESPN's exclusive bidding window has lapsed, zoom, zoom, here comes Netflix. And yes, the only real question would seem to be if Amazon – which actually outbid ESPN the last time around (but still lost because F1 didn't want to do a streaming-only deal) – can pass them. Unlike Netflix, which continues to bulk up their live sports agenda on the sly, Amazon is overt about their goal here. To the point that they're seemingly in a race with Disney/ESPN to become the main sports streamer over the next few years (and yes, I expect Netflix to be in that conversation as well – beyond subscribers, it's all about the ads). Might that lure ESPN back to the table here?
One more thing: Apple remains a wildcard given their own sports ambitions. And the fact that their biggest swing yet for Apple TV+, the Brad Pitt-starring, Joseph Kosinski-directed F1 movie, is coming this summer. Then again, they seemingly like deals such as the one they have with MLS for worldwide rights. Per this report, F1 would prefer to spread such rights out and Sky Sports in the UK already has a much longer deal with F1, so worldwide is likely out of the picture. Still, it would be cool to see an F1 race in 'Immersive Video'. And I'd bet that Eddy Cue agrees (and don't forget)...
M.G. Siegler
M.G. Siegler
M.G. Siegler