Netflix helped create the instrument fueling the popularity of Formula 1 racing in the United States. It only makes sense that the company would want to make a move to become the sport’s exclusive media rights partner.
Just two months ago, Ted Sarandos, one of the company’s co-CEOs, said he didn’t see live sports as a priority for Netflix or as a path to significant profit.
Now it seems that view has changed. Business Insider reports that Netflix will join Disney, Amazon and NBCUniversal in a bidding war for the racing circuit’s US television rights.
Disney would very much like to keep the rights and keep races on ESPN. The company submitted an initial bid of $70 million per year. That is about $30 million per year less than what F1 owner Liberty Media thinks they are worth.
Netflix’s hit documentary series F1: Drive to Survive has been a key factor in creating new fans for the sport. That is why a marriage between the two makes so much sense. Netflix’s sudden interest may also have something to do with the streaming service beginning to lose subscribers.
That subscriber migration isn’t something that seems to concern Liberty Media CEO Greg Maffei.
“It is interesting how the world fragmented with cable households, and how many there are compared to Netflix households and [Amazon] Prime households,” Business Insider quoted him as saying before the Miami Grand Prix. “The idea that the broadest audience is on cable — that’s becoming a lot less clear.”
What will be very interesting is Netflix’s path forward in sports if it does win the F1 rights. Would something like Drive to Survive shape the company’s entire sports strategy? Would Netflix create documentary shoulder content for every league partner?
There is also the question of how Netflix will handle advertising. The idea of airing commercials has been a part of what has turned the company off from live sports in the past. Would the content team be tasked to come up with a revolutionary new way of integrating advertising into games in order for the company to pull the trigger?
Pat McAfee: My Show ‘Being in the Middle’ of College Football Feud ‘is so Dumb’
“I f***ing love Ryan Day. I love the fact that he was like, ‘I will hit an old man. I do not care.’”
When ESPN brought the Pat McAfee Show onto the network, it was done to appeal to a younger audience, but it was also done, at least in part, because McAfee makes news. The show proved again on Saturday night that it has a way of finding itself in the middle of football conversations.
On Friday’s show, producer Ty Schmitt interviewed former Notre Dame coach Lou Holtz. Schmitt, who has been asked by McAfee many times to do his Holtz impersonation on the show, talked to the former coach in full character. Not only was he doing a Holtz impersonation, he was also wearing a full costume, which included a prosthetic face.
During the segment, the real Holtz, a former ESPN analyst, said that Ohio State has a history of being too soft under head coach Ryan Day and that is how they have lost the games they have. He predicted that would be the reason Notre Dame would win on Saturday night.’
Following Ohio State’s last second victory, Day addressed the former Notre Dame coach saying “I’d like to know where Lou Holtz is right now. What he said about our team, what he said about our team, I cannot believe.”
McAfee admitted that he immediately started texting friends associated with Ohio State.
“I texted everybody I know from Ohio State,” he said on his show Monday. “I was like, I f***ing love Ryan Day. I love the fact that he was like, ‘I will hit an old man. I do not care. What this guy said is out of pocket.’”
McAfee added that the real Lou Holtz, who is 86, joked about having dementia and not really knowing what he was saying. He added that he wonders if Day knows that Holtz made his comments to another man who was in a Lou Holtz costume.
“Us being in the middle of that whole thing is so dumb,” he said.
Schmitt admitted that it was hard to believe the moment is real.
“I was laughing until I thought I was going to pass out on Saturday night,” he said.
ESPN Reportedly Leaving Seaport Studios in New York, Possible Move in LA too
“The South Street Seaport studios have been open since 2018. It is currently home to Get Up, First Take, Around the Horn, and NBA Countdown.”
ESPN is making some changes in New York. Puck News reports that the famous Seaport Studio will be empty soon as the network relocates its New York City operations to Hudson Square.
The South Street Seaport studios have been open since 2018. It is currently home to Get Up, First Take, Around the Horn, and NBA Countdown. In the past, it hosted High Noon and Sunday NFL Countdown as well.
The Walt Disney Company owns the property where the new studios will be housed. Puck reports the relocation is likely to happen “no later than fiscal 2025.”
The Puck report also states that ESPN could be on the move in Los Angeles too. On the West Coast, the network currently is housed in LA Live, outside of Crypto.com Arena. No details were offered on those plans.
John Skipper: ‘Hollywood Strikes Will Not Impact NBA Media Rights Negotiations’
“He is going to get a very big increase.”
Media rights for national television packages for the National Basketball Association are set to expire following the 2024-25 season, with negotiations expected to begin in the new year, which could occur amid Hollywood strikes. The NBA’s exclusive negotiating 45-day window with its current rights holders – The Walt Disney Company (ABC/ESPN) and Warner Bros. Discovery (TNT/TBS/NBA TV) – opens on March 9, 2024 before the rights can be taken to the open market.
Numerous sports media entities have reported interest in the league, including Amazon Prime Video, Apple TV and NBC Sports as NBA Commissioner Adam Silver could look to triple the aggregate fee for games. The league is in the midst of a nine-year deal worth a collective $23.4 billion with the two broadcast entities and has positioned itself for an increase through a new In-Season Tournament, rules regulating load management and additional media incentives.
Linear platforms, combined with sports talk radio and digital outlets have burgeoned coverage of the league to new heights. Superstars such as LeBron James, Stephen Curry and Giannis Antetokounmpo regularly dominate sports conversation in various locales, and the Association has embedded itself in the culture both domestically and abroad. The NBA is expanding globally, holding several international contests each year and marketing its teams, players and personnel in new ways, leveraging its position as the predominant basketball product for augmented fees.
While there seems to be an end in sight for the Writers Guild of America (WGA) strike against the Alliance of Motion Picture and Television Producers (AMPTP) after almost 150 days out of work, companies making bids for the Association project the holdout to stymie certain revenue streams. Warner Bros. Discovery could take a hit between $300 million and $500 million, while The Walt Disney Company shares dropped a collective 14% amid losses of more than $4 million per day.
“This will have zero impact – the strike – on what the NBA gets paid for their rights,” Meadowlark Media co-founder and CEO John Skipper opined on Skipper & Samson. Skipper was part of negotiating the current deal and sees the value the league has in that there are more people interested in broadcasting the games than there are game packages themselves. Because of this, the NBA should have leverage in its negotiations with both traditional and digital outlets.
Conversely, former baseball executive David Samson affirmed that the Hollywood strikes will likely have an impact on negotiations because of the power it grants legacy media in negotiations. Zaslav, as surmised by Samson, will use these strikes as an excuse to justify a diminished fee increase, something he feels will be countered by the NBA with the question of why the company inked its Inside the NBA commentators to 10-year extensions.
“He’ll say back, ‘Well actually, we’ll repurpose them the way we’ve already started to repurpose Barkley,’” Samson articulated. “So I think that the strike actually gives leverage to Warner Bros. Discovery in its negotiation with the NBA.”
David Zaslav, the chief executive officer of Warner Bros. Discovery publicly stated that the entity will not overpay for the NBA and said it does not need the property. Negotiating through the media is a bad idea, according to Skipper, who was previously involved in these negotiations while serving as the president of ESPN. He came to that conclusion after ESPN lost the rights to the National Hockey League after the 2004-05 lockout, a property it did not reacquire until the 2021-22 season.
“In this industry, I never found it anything but deleterious to my discussions with the leagues if I said anything publicly other than, ‘We love this league; we want to renew our rights,’ which we said all the time,” expressed Skipper. “I even said it when I didn’t love the league and didn’t want the rights because, as you know, the second-best outcome of any negotiation is that somebody else pays way more money than they think they have to [in order] to get rights.”
Since the demand outweighs the supply, Skipper does not think that anything going on in the world of entertainment and late night television will affect how much networks will end up paying for the NBA. The league will continue to have every intention of proliferating its earnings derived from media rights, and he thinks it will be successful in its quest to do so.
“He is going to get a very big increase,” Skipper said, referring to Commissioner Silver, “and the writers’ strike is not going to have any effect on that increase, in my opinion.”