ESPN Drops F1 as Streaming Sites Fight for Rights

ESPN has decided not to renew its media rights agreement with Formula One, a move that comes as streaming platforms and traditional broadcasters compete fiercely for sports broadcasting rights, according to a recent report.

The current deal, costing ESPN around $90 million annually, is set to expire. Formula One is reportedly seeking a higher fee in its future contracts, which may have influenced ESPN's decision.

The network has previously made similar decisions concerning its commitments to the Pac-12 Conference and Major League Soccer, indicating a pattern of reevaluating its media rights investments. There's also speculation about a possible reconsideration of ESPN’s $550 million deal with Major League Baseball.

Even though Formula One has been gaining popularity in the U.S., with an average of 1.1 million viewers per race on ESPN, these numbers do not compare to those of other major sports events. ESPN has questioned the financial justification of increasing its investment in the sport, leading to its decision not to renew the agreement.

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As ESPN steps back, the competition for Formula One's broadcasting rights has unsurprisingly gone wild, with NBC and Netflix fighting for contention. NBC is looking to reclaim the rights, having previously held them from 2012 to 2017. During this time, NBC provided extensive coverage of Formula One, which could potentially be restored if they regain the broadcasting rights. The network aims to leverage its streaming service, Peacock, to tap into Formula One’s global fan base effectively.

Meanwhile, Netflix is also considering a move into live sports broadcasting by possibly acquiring Formula One rights. The streaming giant is already known for its documentary series Drive to Survive, which has played a large role in increasing U.S. interest. However, moving to live sports would demand substantial investments in infrastructure from the streaming company.

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This decision by ESPN is part of a broader financial strategy by parent company Disney, which involves focusing on media rights investments that promise sustainable returns. The network has shown an increased selectivity in its contracts, especially in high-cost sports properties, as it evaluates its financial priorities.

This news really comes as no surprise. A little over a million viewers average for each race is a tiny number compared to other, more established sports in the US. Maybe a change in broadcaster will improve its standing in the States.