American streaming giant Netflix can demand $200,000,000 from Liberty Media, the owner of F1 following a recent act of betrayal. This has come right after Liberty Media agreed to have a deal with Paramount+, despite the mammoth boost the former company has given to the sport.
Netflix and Drive to Survive have been instrumental in the growth of F1 in the United States and all around the globe. The immensely popular docu-series, which is now in its fifth season, has delivered revenue of $2.14 billion, in its nascent stages back in 2021. It is believed that this number has now skyrocketed, while also making Toto Wolff a billionaire.
However, negating the profits made from Netflix, F1 went on to sign a deal with Paramount+ through their sponsorship sales head Brandon Snow. It was shocking how Liberty Media in spite of having Netflix can sign and put its competitor in the chair of “official partner” status.
How did the Paramount+ deal play out?
Snow, labelled an idiot by Tom Rubython from Business F1, agreed to sign with the Paramount Media owned streaming service recently. They were given the permission to be promotional partners on a multi-year deal, hence gaining global coverage.
However, Netflix will not let it go easily as Paramount+ already has a huge hold in NFL, UEFA Champions League, and PGA Golf in the United States. Its involvement with F1 will not go down well with its fierce competitors, and going on with this deal, as Business F1 believes, was commercial suicide.
As of now, Netflix pays Formula 1 group to air Drive to Survive because of the rights issue. However, things can turn upside down when this contract ends and due to this, Liberty Media might have to pay them $200 million in return to broadcast the docu-series.
Rubython suggests damage control to F1
According to Rubython, the first and foremost thing Formula 1 Group should do is to fire Snow, their sales supremo in order to save themselves from Netflix’s wrath. Moreover, he also suggested that the man who hired him should tag along.
For Outstanding Achievement in Sound Editing – Non-Theatrical Documentary, congratulations to the team from Formula 1: Drive to Survive! #MPSE #GoldenReels #DrivetoSurvive pic.twitter.com/aWyX2giptf
— MPSE (@MPSEGold) February 27, 2023
Admittedly, the author also provided an example of how Liberty Media failed to maneuver itself commercially, unlike the English Premier League as Richard Masters, the CEO of the league banned Paramount+ from sponsoring Chelsea Football Club.
Masters took the radical decision to ban the American giants by thinking about the consequences for the League’s multiple broadcast deals worldwide if they had to allow Paramount+ to be shown by the competitors. And Rubython agreed this was sound thinking, which Brandon Snow missed out on.
