Netflix linked with US F1 rights bid

Netflix is expected to enter talks with Formula 1 over potentially securing its United States broadcast rights, with an exclusivity period ESPN had in place to renew its deal having now expired.

ESPN's current contract, which ran from the start of 2023 as a three-year extension to a partnership that stretches back to 2018, finishes at the end of this season.

It is understood that discussions between ESPN and F1 management about extending their deal into the next rules era from 2026 opened up towards the end of last year. However, those talks have not resulted in a contract being put in place yet.

And, most interestingly, it is understood that an exclusivity clause that existed – which prevented F1 from speaking to other parties over a US broadcast deal – has just lapsed which means discussions can now begin with other broadcasters.

While that does not necessarily mean ESPN is out of the picture, as it is still possible that negotiations can be successfully concluded, it does mean that the door is now open for other interested parties to come forward and throw their hat into the ring with F1.

A report in The Times on Thursday suggested that one of the leading candidates will be Netflix, which has been looking to expand its live sport offerings – and has close ties to F1 through its Drive to Survive series.

The newspaper suggested that Netflix was considering a formal bid, and that its efforts were being helped by the company having recently hired Kate Jackson, ESPN's vice-president of production, to be its new director of sports.

Netflix is no stranger to live sport, having secured rights to two NFL games over the Christmas period as well as becoming the US broadcaster for the 2027 and 2031 women's football world cup.

Its broadcast of the Mike Tyson-Jake Paul boxing match last November also proved to be a massive hit – it was the biggest streamed sporting event ever - showing the appeal of live sports action and how it can drive new subscribers.

Netflix was linked with a bid for F1 last time the US contract came up for discussions in 2021, but it and streaming rival Amazon - which also held talks - were beaten to the deal by ESPN.

However, the continued growth in interest in F1 could make things more attractive this time around – and Netflix would certainly have the financial might to dig into its coffers if the fee being sought from FOM is much higher than the $90million per season that ESPN is currently estimated to be paying.

The only downside from the perspective of Netflix, and other streaming companies such as Amazon and Apple who have also been linked to F1 bids, is that there is no scope for a global sports rights deal – as FOM much prefers selling the rights on a regional basis.

This allows F1 greater flexibility in how it puts deals in place, ensuring it can maximise profits and deliver the best coverage possible.

In the UK, Sky Sports has the live exclusive rights to F1 until 2029 – so any deal that Netflix or other global streaming company does for next year would not clash with that.