PatBeith

In 2015, the former CEO of Formula 1 summed up the sport’s approach to marketing: “I’d rather get the 70-year-old guy who’s got plenty of cash. So there’s no point trying to reach these kids.” As great as that strategy sounds, it failed. Then Liberty Media bought F1 in 2016… Liberty’s first order of business? Addressing the ‘US issue.’ “The sport had long attracted premium advertisers in Europe, but failed to find an audience in the US.” Liberty’s idea – position F1 as a content company. 2 years later F1 announced a deal with Netflix for a docuseries. It got little attention. Many in F1 thought it was dumb. The two biggest teams (Mercedes and Ferrari) refused to participate. Red Bull, maybe the best marketing company in the world, was the only top-3 team to participate in season 1. A blessing in disguise. It forced the producers to focus on: – The championship battle – The mid tier – The bottom tier Giving viewers a relationship with all 20 drivers. *** Great storytelling maximizes tension and conflict. F1 is set up to do just that, in a unique way. There are two dynamics to watch: – Tension between teammates – Tension between teams Let’s talk about each. Tension between teammates: Only one other driver has the EXACT SAME car as you – your teammate. If someone else beats you, you have an excuse… But if your teammate beats you, he was simply better. This creates a fascinating dynamic between teammates, as seen across the DTS seasons: – Verstappen / Checo – Hamilton / Bottas – Lando / Ricciardo As a viewer, it’s incredible TV. Then you have the dynamic between teams. With only 10 teams, finishing 1 or 2 spots above or below where you’re projected means making (or losing) tens of millions. The team principals and owners best show this: – Horner / Wolff – Brown / Stroll – Guenther *** Max Verstappen, the reigning world champ, accused DTS of ‘dramatizing’ F1. He’s not wrong. It’s the same tactic used by Hard Knocks and the Ultimate Fighter. — Identify season-long storylines — Magnify the drama — Profit The results are staggering. Since DTS launched in 2019, F1 has seen: — 40% increase in US viewership — 7 of the 10 most watched races ever — The most attended race ever: 400,000 at the 2021 US Grand Prix in Austin The success has translated to dollars. Formula 1’s valuation has gone from $8B to $17B in just 4 years (113% increase). *** Less than 20% of Drive To Survive is racing. Why? In a sport where drivers wear helmets, seeing their faces and personalities drives more affinity for new fans. F1 estimates the show has earned 73M new fans 🤯 But what shocked me? Netflix actually pays F11 a licensing fee for Drive To Survive. Essentially, F1 gets paid to air one of the best commercials ever. That’s brilliant.