F1 takes another step towards online streaming
F1 appears to have finally decided to explore the opportunities offered by the Internet in terms of broadcasting. The FOM has just granted Tata Communications the rights to distribute the images of GP2, GP3, and Porsche Supercup races. This could serve as a test for F1.
F1 as we know it today has built its economic model on selling its footage to television channels around the world, which are willing to spend millions to offer a show capable of attracting millions of viewers. These viewers attract sponsors seeking global exposure. In this context, the Internet was long perceived as the enemy, with a real hunt for images to ensure that only those provided by partner channels were visible.
However, it can be noted that Bernie Ecclestone’s policy has clearly changed in recent months, with the authorization to create a YouTube channel and the complete redesign of the sport’s official website to bring more interactivity and highlight the sport’s glorious past.
It is thus interesting to note that the FOM has also decided to deepen its partnership with Tata Communications, which already provides access to its global network for the FOM at each race. The Indian conglomerate has been a partner of the sport since 2012, and the new agreement also states that Tata Communications will now be the provider of images for all the support races during race weekends, namely GP2, GP3, and the Porsche Supercup.
Vinod Kumar, the CEO of the company, stated: « Tata Communications’ work with FOM is a testament to the variety and flexibility of our services. Each F1 race requires a range of connected services similar to a small town. By strengthening the fixed-line connectivity needs through Tata Communications, FOM will be able to fully benefit from our infrastructure, our flexibility, on-site and remote support, as well as the knowledge and experience of our platform and team. We are a unique player in the ecosystem and are well-positioned to provide a high-quality live stream to our customers around the world. »
If both partners obviously refuse to discuss it publicly, one might think that such an agreement is established as a full-scale test to see the stability of Tata Communications’ data flows with a view to a future shift of F1 to the platform set up by the IT firm.
The FOM would then be able to sell the race directly to the end consumer, just as the FIA can do with the WEC. This would be even more acceptable to the same consumer as free broadcast of races is becoming increasingly rare, since partnerships with paid channels like Canal+ in France or Sky in the United Kingdom have multiplied over recent years.
The coming months could therefore witness a radical evolution in the sports business model.
With the participation of www.Racingbusiness.fr
