Foxtel has secured its position in the competitive sports broadcasting landscape by retaining the rights to Formula 1, even as it navigates significant changes under new ownership. The company, now owned by DAZN, is set to pay approximately $60 million annually for the rights starting in 2027, a notable increase from its current expenditure of $45 million per year. This deal comes despite DAZN’s recent cuts to Foxtel’s local operations and staff.
The decision to maintain Formula 1 rights aligns with the rising profile of Australian driver Oscar Piastri, who has become a standout in the sport. His success on the track has likely contributed to the increased value of the broadcast rights. Foxtel’s ability to secure these rights is a significant win for its CEO, Patrick Delany, especially as the company faces challenges such as the recent loss of HBO content from its streaming service, Binge.
Negotiations and Competitive Pressures
As negotiations for the Formula 1 broadcast rights reached their final stages, Foxtel emerged victorious over rival streaming service Stan, which is owned by Nine, the same parent company as this publication. The competition for premium sports content is fierce, with both platforms vying to attract subscribers through high-profile sporting events. Stan has been focusing on maximizing its recent English Premier League (EPL) rights deal, adding pressure on Foxtel to maintain its sports offerings.
Despite the transition from News Corp to DAZN in April 2023, executives at Foxtel have maintained that operations continue as usual. However, the recent departure of key content executives and the proliferation of discount subscription offers to lapsed customers signal the need for Foxtel to strengthen its content portfolio. Retaining the Formula 1 rights is critical for maintaining its competitive edge in the market.
Furthermore, the strategic emphasis on sports content underscores Foxtel’s recognition of its value in attracting and retaining subscribers. The potential for increased viewership driven by homegrown talent like Piastri enhances the appeal of the Formula 1 franchise, making it a lucrative asset for the company.
Foxtel’s commitment to investing in sports rights reflects a broader trend in the media industry, where streaming services are increasingly reliant on exclusive content to differentiate themselves from competitors. As the landscape evolves, Foxtel’s ability to navigate these challenges while securing high-profile sporting events will be crucial to its future success.
