Formula 1 is in a healthy position in terms of media rights, but according to Derek Chang, CEO of Liberty Media, it is looking at partnerships that go beyond simply broadcasting races.
US TV rights have been updated at the end of this year, and sources show that Apple is in a position to take over from its previous broadcaster ESPN. Chang spoke at the Goldman Sachs Kankacopia Technology Conference earlier this week, and says that the direction the US is taking is also seen worldwide as Formula 1 tries to separate its fan base from racial coverage.
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“We are healthy assets and we think we are the assets that are sought because we have these debates around the world,” Chan said. “We’re back at Globo in Brazil next year and announced that we’re doing something with Globo. We announced earlier this year that we’ve renewed our rights in Canada.
“Like the US, I think this is a total view of what is traditionally known as your media partner, but in the classic sense of the person broadcasting your race, I don’t know if it’s necessarily the media partner itself.
“It’s someone who can help your fans interact with even your sponsors. That’s all. I think that’s the people who think that what we can do as part of their playbook and to enhance it for them is what we’re trying to do business.
“It’s not a perfect world, and the timing isn’t perfect. You sometimes need to address the practical implications of what is available and how to make that partner and what is available for you. These arguments make them seem very healthy.
Chang says the sports media rights situation is not the only area in which Formula 1 is in a strong position, but also praises the work done on the sponsorship side.
“Is there always a story of investors that there’s a finite period when something ends? “On the sponsors’ side, I think this was an incredible year. Stefano and Emily (Prazer, Chief Commercial Officer for F1) and their team have done a great job in multiple ways.
“One thing is just a continuation of just inviting new sponsors. Vegas is a big part of that and I think it’s very useful for that story and its story. It’s filling in a lot of categories, so I think there’s an opportunity for growth in regards to the existing updates that will happen here in the coming years.
“I think you can see demand is there. The inventory is tightened in a way. Even if the name doesn’t change, what you see is actually good because it’s so strong that you have a long-term partner who is constantly involved with you and continues to invest in that brand association.
“What you see is that people come to different groups that drive demand and pricing, and in itself helps monetize beyond the ongoing investment in the brand affiliations that these people create.”