🏎️ Formula 1 Economics
Formula 1 is a complex global ecosystem involving #FIA, Formula One Group, 10 teams, sponsors, broadcasters, and race promoters all working together.
Formula One Group generates revenue from race promotion fees (30%), media rights (30%), sponsorships (20%), and other sources like tickets and paddock access (20%).
The #Netflix docuseries Drive to Survive has transformed F1's popularity since 2019, attracting new younger fans and fueling unprecedented revenue growth.
In 2023, Formula One Group's revenue grew 25% to $3.2B, with growth across all revenue streams, while costs include team payments and other operating expenses.
Since acquiring F1 in 2017, Liberty Media is focused on innovations to engage and grow the fanbase globally, especially in the lucrative US market through events like Las Vegas and Miami.
F1 remains an attractive and profitable business for Liberty Media due to its predictable revenue streams from long-term contracts and reinvestment in global expansion.
The article provides an overview of the business model, economics and stakeholders powering Formula 1's transformation into a global commercial juggernaut.
It analyzes the revenue sources and financial performance that have fueled F1's recent surge in popularity and profitability.
The analysis sheds light on Liberty Media's strategies for innovating, marketing and maximizing the value of its #F1 asset globally going forward.
The role of Netflix's docuseries in supercharging interest is also examined, along with F1's increasing crossover appeal in entertainment.
#appeconomyinsights #formula1 #sundaypost
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