Could A Netflix, Formula One Streaming Partnership Reach The Finish Line?

Rights for original content continue to heat up for streaming companies. One area that has been hot in recent years is sports content as streaming companies lure this advertising stronghold away from traditional broadcasters.

Netflix Inc NFLX could grab rights for one of the largest international sports.

What Happened: For many years, Netflix has been rumored to want to acquire the rights to stream sports. The company is considering bidding for the streaming rights for Formula One, owned by Liberty Formula One Group FWONAFWONK.

“A few years ago, the rights to Formula One were sold. At that time, we were not among the bidders — today we would think about it,” Netflix CEO Reed Hastings said recently.

Hastings praised the access to the sport and drivers Netflix already has and would gain with a streaming deal, as compared to other sports.

Netflix began an annual docuseries called “Formula One: Drive to Survive” in 2019 that has helped increase engagement for the sport and bring new viewers to the races, including many in the U.S., which was typically not a strong Formula One market.

ESPN, owned by the Walt Disney Co DIS, has the streaming rights to Formula One in the U.S. through 2022. ESPN has signaled interest in renewing the rights with a long-term deal.

“We obviously would love to continue to partner with Formula One long-term on this and continue to grow the sport here and their property in the U.S.,” ESPN’s John Suchenski said.

Amazon.com, Inc. AMZN is also in talks with Formula One over a streaming deal for the league.

“We’re talking to them about specifically acquiring our rights, in the same way you would sell to any other media company,” Formula One Director of Media Rights Ian Holmes said about Amazon.

Related Link: Could Netflix Help Shares Of Formula One? 

Why It’s Important: Netflix has more than 200 million global subscribers. The company’s large base of U.S. subscribers may have had their first experience with Formula One thanks to the streaming company.

Engagement across social media platforms for Formula One was up 99% year-over-year in 2020 from the success of the docuseries.

Formula One is seeing record U.S. viewership across several platforms. Viewership for Formula One races in the U.S. are up 39% from 2019 to 2021.

A heated rivalry between drivers Lewis Hamilton and Max Verstappen in the 2021 season has helped increase interest and viewership for the sport as well.

The league announced a 10-year deal to add Miami as its second U.S. city on the circuit beginning in 2022. Miami and Austin, Texas will be the two cities representing the U.S. in 2022.

After having a COVID-19 impacted year in 2020, the company plans on having a record of 23 events in 2021, which could also help with a rebound in revenue.

Price Action: At publication Thursday morning, FWONA shares were trading up 1.72% at $47.41, just shy of its 52-week high of $47.51.

Image by Peter Fischer from Pixabay