General
Formula 1 on Netflix? Global rights holders should be worried!
- Ludo van Denderen
Netflix is reportedly eyeing the broadcast rights for Formula 1 in the United States, a move that could significantly impact the sport. With its vast financial resources, the streaming giant could shake up F1’s media landscape. If Netflix does indeed manage to secure the rights in the US, it could signal the start of a global expansion—something that should put current rights holders on alert.
ESPN is currently paying $90 million to broadcast F1 in the United States. With that amount in mind, Netflix wouldn't have a problem becoming the highest bidder for the rights for 2026 and beyond. In case anyone had any doubts: Netflix is swimming in cash. It recorded a profit of almost $18 billion after the 2024 financial year. Disney, the owner of ESPN, posted a profit of just under five billion dollars last year.
Sports are important to Netflix
Sport is an increasingly important pillar within Netflix's offerings. For instance, the company puts down $150 million a year to be allowed to broadcast two (!) games during Christmas in the NFL. 150 million for two games, how much would be paid for 24 Grands Prix?
No doubt broadcasters around the world are keeping a close eye on developments in the US. After all, Netflix is not the party that would want to limit itself to just the US market. Obtaining F1 rights in the US, then, is surely the prelude to a global deal.
This is not that settled overnight. After all, broadcasters have contracts with Formula One Management on a country-by-country basis, and these have to expire first. It is easy to imagine F1 and Netflix coming to a deal, agreeing that once a contract with a broadcaster somewhere expires, the rights will then go to the US streaming service.
At the end of 2027, for example, the contract between the German variant of Sky Sports and F1 expires. Two years later, the same happens for Sky Sports in the UK and in the Netherlands with Viaplay. So all these broadcasters, viewed in this light, should be quite worried. They wouldn't be able to compete against a financial powerhouse like Netflix.
Are broadcasters dependent on Formula 1?
Sky Sports is not completely dependent on Formula 1 in the UK, as the channel also brings the Premier League to the screen, among other things. The loss of F1 could probably be absorbed, but it is probably not pleasant for David Croft, Martin Brundle and their colleagues.
In any case, interesting years await F1's broadcasters. After all, Netflix is not the party that will let something go after biting into it.
This article was written in collaboration with Toby Nixon
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