Formula One, the motorsports owned by Liberty Media Formula One FWONA FWONK, is in "active talks" with Amazon.com, Inc AMZN to stream its Grand Prix races, the Financial Times reports.
What Happened: Formula One is the world's most valuable motorsports series. F1's outgoing chief executive officer, Chase Carey, told Financial Times that he has held "substantive discussions with Amazon and all the global digital platforms" for new screening deals.
Carey said that online streaming platforms are important potential partners and serve as an opportunity for F1 to expand its business.
Reportedly, F1 wants to expand its audience and target younger fans who switch to watching sport online rather than traditional TV networks.
Why It Matters: F1 is under pressure to find new revenue streams after the pandemic led to operating losses of $363 million in the first nine months of 2020, FT reports. Liberty Media was forced to furlough half its workforce and injected $1.4 billion cash in April to weather the pandemic.
FT reports that Amazon did not comment on the story, but it has been one of the most aggressive platforms in bidding for live sports rights worldwide.
Amazon has secured rights to stream National Football League matches in the US and the English Premier League in the United Kingdom. The Jeff Bezos-led internet giant is also looking to expand in the hot cricket streaming market in India. Facebook, Inc FB has also joined the content-streaming bandwagon in India.
FT notes that Amazon and other streaming platforms have been reluctant to offer the huge rights money that broadcasters have previously paid for F1. The biggest broadcasting deal for F1 is with Sky in the U.K., grossing $250 million a year until 2024.
Price Action: AMZN shares closed marginally up by 0.1% at $3,206.52 on Tuesday.
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