The last years broadcasters are paying the jackpot to be able to coverage Formula 1. In September 2022 Sky Sports announced that they will remain the rights until 2029. Rumors say that they will pay 1 billion pounds for it to place Formula 1 behind a paywall. But why has Formula 1 to be so expensive?
Formula 1 is often considered to be the pinnacle of motorsport, with high-speed cars and skilled drivers racing around the world's most iconic tracks. However, the sport's exclusivity is also evident in its high cost, making it a sport for the elite.
The costs of Formula 1 are astronomical, from the cost of the cars to the expenses of running a team. This high cost is due in large part to the rights fees that are charged to broadcast the sport. These fees are so high that only a select few media companies can afford to broadcast the races
For example, only in 2021, Sky Sports paid approximately $200 million for the exclusive rights to broadcast Formula 1 in the UK. This means that only those who have a Sky Sports subscription can watch the races live. In other countries, similar exclusivity exists, with only a select few channels able to broadcast the races.
This exclusivity extends beyond just the cost of watching the races, however. To actually attend a race in person, the cost is also incredibly high. Tickets for the most popular races, such as Monaco and Singapore, can cost thousands of dollars, not including the cost of travel and accommodations.
Profit
TV broadcasters play a crucial role in bringing Formula 1 to fans around the world. These broadcasters purchase the rights to broadcast the races and related content, which can include practice sessions, qualifying rounds, and pre- and post-race analysis. But comapnies like Sky Sports make a lot of money with it. Imagine that you have a subscription to Sky Sports, you are paying money to get access to the channels. And even when you pay for it you still have to watch annoying ads. Wouldn't it be weird to have a Netflix subscription and still have to watch ads? It's like Sky Sports is combining modern and old together. On Rerace you can enjoy the best of Fomula 1 without any subscribtion.
The rights to Formula 1 are highly sought after, as the sport has a massive global following. This means that broadcasters must be willing to pay a premium to secure the exclusive rights to broadcast the races in their respective markets. Overall, broadcasters play a vital role in Formula 1, both in bringing the sport to fans and in contributing to its financial success. However, the high cost of securing the rights to broadcast the races can also contribute to the sport's exclusivity, limiting its accessibility to all but the wealthiest fans.
