The landscape of Formula 1 broadcasting is sat at a crossroads. Streaming giants such as Netflix have emerged as major disruptors, changing how fans expect to consume entertainment, sporting or otherwise. Recent successes in the field prove this shift in the industry to digital platforms, with Netflix's growing sports portfolio and F1's marketing approaches like the F1 75 celebration event spearheading a new direction for sports media.
The streaming service has already transformed the global audience of F1 through its docuseries Drive to Survive. Since its debut in 2019, the show has erupted in popularity, and the sport is now thriving with an expanded fanbase, especially in the United States where F1 had very little market share. Season 6 saw a drop in ratings for the first time since its inception, likely due to Max Verstappen and Red Bull's extreme dominance. But despite this, it still saw 21.8 million hours watched in the first week and an average audience of 1.96 million. In 2022, F1, for the first time, exceeded an average of one million US viewers per race.
The docuseries has been credited with building a younger, more diverse audience by focusing on the personalities behind the helmets that traditional broadcasting doesn't shed light on. This success has caught the eyes of F1 and Liberty Media, who are now seeking to utilise a similar angle to further boost ratings. The influence of Drive to Survive has been overwhelming, with it launching household names like former Haas team boss Guenther Steiner and ex-racer Daniel Ricciardo. But most importantly, it has demonstrated Netflix's ability to build a narrative in a way no traditional broadcasting can.
Thanks to this success, streaming services are now in the unique position of acquiring live broadcasting rights. Motorsport.com understands that Netflix is highly interested in the rights to F1 live streaming, and it would be silly for the sport to look the other way, especially as Liberty Media will not be continuing its deal with ESPN.
The recent F1 75 event at London's O2 Arena sees a new approach to promote the sport. Despite fans being wary of what might come from the evening, it was a huge success with it drawing over 7.5 million viewers across F1's social sites making it the largest live event ever hosted by the sport.
But more importantly, it showed a willingness to experiment with new ways of covering the sport and its teams. While traditionalists may have been sceptical, the event delivered exactly what it promised, and in a way that aligned with what we're getting used to from Drive to Survive. It started conversation, sparked excitement, and entertained: a philosophy that Netflix has all-but perfected.
Netflix has invested heavily in its sports media. After years of arguing it wasn't anti-sports, just pro-profit, the streaming company has built an impressive portfolio of live sports rights. This includes the broadcasting of two NFL games on Christmas day of 2024, worth $150 million and attracting 60 million global viewers, and a 10-year WWE streaming deal worth $5 billion. In fact, Netflix holds the record for the most-streamed sporting event of all time, the Mike Tyson versus Jake Paul boxing match late last year.
Is Netflix ready for F1, however? The hiring of Kate Jackson in November of last year, ESPN's former vice president of production who previously oversaw F1 coverage, would argue yes.
The immediate focus lies on the US broadcasting rights for Formula 1. ESPN's current deal, worth around $90 million a year is due to come to an end after the 2025 season. This allows Netflix to make a bid for the turn of the regulations in 2026. Netflix, which will reportedly be spending $18 billion on content this year after a profit of $8.71 billion in 2024, has the financial advantage over the likes of Disney's sports segment (primarily ESPN) which has seen their profits fall due to higher costs.
Netflix's habit of spending aggressively on sports suggests that it would outbid traditional broadcasters.
If Netflix is successful in the US bid, then its next focus could be global. Sky Sports and Viaplay hold the rights until 2029, and Sky's German counterpart hold theirs until 2027.
Streaming services offer capabilities and viewing options that traditional broadcasters simply cannot match, similar to that of F1 TV. It also offers a lower-cost option for more casual fans who may be reluctant to pay for an expensive sports package like Sky Sports.
For F1 and Liberty Media, the financials look substantial. Broadcasting rights fees have skyrocketed, with reports suggesting a 15-fold increase over the last few years. Netflix's deep pockets could drive these even higher, creating a sport that is even more financially secure.
Everything points to F1 choosing this business model in the future, and while nothing has been confirmed, recent reports suggest that they are increasingly interested in an outfit like Netflix to host the sport in the future. 2026 looks to be a season of change - a new era not just for the teams, but for fans who long for a more modern, accessible way to get their F1 fix.