Are Holland and Denmark on the way
One of the first steps in taking the Grand Prix circus to a new venue is filing a Trade Mark application in the region. Via Formula 1 Licensing BV, Liberty Media have filed trademark application in both Denmark and Holland, Denmark last November and Holland in January this year. The application is for full rights to articles and services, which refers not only to the event but related merchandise.
While there has been talk of Zandvoort hosting a Grand Prix, the iconic track having hosted Holland's round of the world championship on 31 occasions between 1952 and 1985, last month FIA race director Charlie Whiting visited Assen, more noted for its 2-wheel racing. Following a computer simulation of the track in December which suggested that it already meets the FIA's Grade 1 safety requirements, Whiting's visit confirmed that only minor changes would be required to the circuit including additional kerbing, guardrails and barriers at certain points on the track. However, while Liberty is seeking a return to the Netherlands as part of its plan to extend the calendar to as many as 25 events, commercial boss Sean Bratches has admitted that a street event would be preferable with Amsterdam and Rotterdam the current favourites.
Late last year an application was made in Denmark where a street race in Copenhagen is under serious consideration. However, what all these prospective race hosts have to do next is show the colour of their money, and with the average annual race hosting fee coming to an eye-watering £22.3m that is no mean feat.
Liberty Media direct streaming could cost just £6 a month
Liberty Media's prepares to take Formula One forward with streaming, whereby all manner of content and data would be sent direct to the fan via the internet. While existing TV broadcast deals, such as in the UK with Sky, may delay the introduction of F1's planned streaming service in some countries, in others the service is almost good to go. While Bernie Ecclestone believed that the TV deals were sacrosanct and therefore barely explored other means of delivering the sport, Liberty Media believes that there is room for paid TV and an online alternative.
I believe Morgan Stanley's recent analysis of the sport's future TV trends is open to question, the report did give some insight into the plans for streaming. Streaming, is "not a near-term revenue driver but important long-term" claimed the bank, which forecasts that only 104,000 users will subscribe this year at an estimated monthly cost of £6 ($7.99) providing just £5.4m ($7.5m) of venue. Indeed, according to the report it will take seven years for the number of subscribers to top one million, the bank admitting "slower than expected adoption of the company's upcoming digital platform efforts could impact growth expectations."
I think the bank are way behind in terms of numbers, the people who watch F1 will not sit and watch the stream on their phones, computers or laptops but will have these devices linked to their flat-screen TVs or as most TVs nowadays are internet ready will just stream directly to the TV. There will for sure be the capability of having screen in screen, so people will be able to look at the data for everything or just individual drivers while also watching the racing.
I think many fans do this already by watching the race on the TV and the data from F1.com on another device, I know I do and most of my friends do also. I think while the banks believe it will take 7 years to top one million streaming viewers, my view is it will take less than 3, of course this depends on how widely available Liberty media's streaming platform will be. Clearly they can not sell it where they have exclusive contracts and I don't know how many countries do at this point. Deals in the USA, Brazil and China are all up for grabs in the next year or two, so Liberty Media can negotiate contracts allowing them to sell OTT internet viewing.
Looking at the figures for just the UK it is clear to see that viewing figures drop massively when the sport goes behind a paywall, the average audience in the last year of the BBC coverage in 2015 was 3.1m. Channel 4's was 1.9m last year. Sky's in 2017 was 652,000. When F1 goes Sky-exclusive in 2019, Sky believe they will get a huge boost in income, the deal is said to be worth upwards of £200m a year. But the UK TV audience is likely to have
dropped by about 80% in four years. The big question is; will Liberty Media get that 80% of lost viewers back with their Internet services.
McLaren set up sponsorship advisory group
The boss of the McLaren Formula One team has revealed that he has appointed a panel of business advisers, including former London 2012 frontman Lord Coe, in a bid to boost its sponsorship income after years of dismal results. McLaren has recently announced a string of sponsorship deals culminating in the signing of computer manufacturer Dell last Thursday. However, perhaps more than any other team, it needs to rev up its appeal after finishing second-to-last in the standings last year which was its joint worst result since 1967.
The latest accounts for the team, which is based near Woking and employs 675 people, show a net loss in 2016 of £3.2m on revenue which was down 4.5 per cent to £179.8m. Last month McLaren hired a 12-man advisory group of business luminaries including Lord Coe, Richard Solomons, the former boss of InterContinental Hotels Group and Keith Weed, Unilever’s chief marketing officer. Their precise duties have not yet been made clear but McLaren’s executive director Zak Brown has revealed that they are there to bring in new deals.
Despite a torrid 2017 McLaren recently announced that it had signed sponsorship deals with news network CNBC and Airgain, which provides wireless connectivity platforms. Its biggest-paying sponsor is believed to be Diageo’s whisky brand Johnnie Walker. McLaren has lacked a naming rights partner since telecoms giant Vodafone pulled out in 2013 and Brown says it isn’t on track to be replaced.
The F1 sponsorship sector has been stuck in the slow lane in recent years following a string of processional seasons which have been dominated by Mercedes driver Lewis Hamilton. Since 2013 F1’s television audience has reversed by 22 per cent to 352.3m and the number of sponsors has fallen by 17 per cent giving it a total of 228 last year.
Testing starts in just 2 weeks
The first testing session will be held at the Circuit de Catalunya, on Monday 26 February 2018 to Thursday 01 March 2018, with the second session following it from Tuesday, 06 March 2018 to Friday, 09 March 2018, not long now folks