Ecclestone wants to charge for online streaming of F1 races.
Ecclestone wants to charge for online streaming of F1 races.
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A Scotsman

Original Poster:

1,001 posts

228 months

Tuesday 28th May 2013
quotequote all
Just came across this report. http://www.pitpass.com/49164-F1-considering-chargi...

This means that even if you already pay for a Sky HD package or a BBC licence if you happen to be somewhere you can't receive them - on holiday, travelling etc - then you'll have to pay Ecclestone an additional fee.

Eric Mc

125,606 posts

294 months

Tuesday 28th May 2013
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I thought he'd sown all that side of things up ages ago.

He's slipping.

McClure

2,173 posts

175 months

Tuesday 28th May 2013
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The only surprise is he hasn't done this sooner; seems an obvious way of wringing more pennies from the sport.

The way I can see this headed is you'll pay F1 direct for online pictures, and a further fee to the BBC/Sky/whoever for the pre- and post-race waffle and commentary.

jurbie

2,440 posts

230 months

Tuesday 28th May 2013
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It seems fairly straightforward and won't change a great deal apart from perhaps giving people more options.
Sky and BBC will continue to broadcast live F1 they just won't be able to show it online. Instead you go to F1.com where you pay whatever they charge and watch it online.

So everyone who complains about giving Murdock money or just don't want to pay for a full Sky Sports subsription have somewhere else to get their F1 from.

StevieBee

15,278 posts

284 months

Tuesday 28th May 2013
quotequote all
The detail is within the prospectus in anticipation of floatation. Such documents are well known for containing much wonderfully potential profit making plans and ideas, not all of which comes to fruition once floated.

Whether or not this does so will depend upon whether it's actually possible to turn a profit once you've installed the means to police it which is very difficult and the number of likely subscribers or people willing to pay per view. Personally, I'm not so sure this is a financially viable thing.


joewilliams

2,004 posts

230 months

Tuesday 28th May 2013
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I'm surprised that F1 hasn't offered online streaming directly to fans yet - though that would devalue the TV contracts, I doubt BE gives half a stuff how much money Sky make as long as they pay him as much as they possibly can.

vrooom

3,763 posts

296 months

Tuesday 28th May 2013
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that's F1 killed then. I reckon Ecclestone will take F1 to grave with him.

belleair302

7,008 posts

236 months

Tuesday 28th May 2013
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All of these ideas and words come from the 'brains' (read fools) at CVC. They are rapidly trying to stir up interest in their end of year Singapore flotation of F1 and need to interest potential investors with regard to new forms of revenue, ie web streaming. Don't get too excited yet.....the hackers are not far away.

Northern Munkee

5,354 posts

229 months

Tuesday 28th May 2013
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The world of television is changing. It's an obvious step, to run side by side with existing outlets for now. Say you bin your sky subscription as you "only got it for F1", he charges you say £20 a race to live stream it given Sky churned out a 5.5 hr broadcast that would still save you money, be fair value and put more money in the FOM coffers. The advantage that F1's brand is well known, policing the scum who rip off original content and rebroadcast it without permission would require either new tech or heavy political lobbying for better control of the Internet I'm sure both are already in the works. i was reading somewhere that the key to this side of marketing is email addresses. Getting an audience to register then tailor offers & content accordingly. The question is how the revenue is divided and the impact it might have on team sponsors and the loss of exposure in territories where it might be pay per view only. Devil in the detail...

Paying for video content online as a stream or download has already begun, and it's just getting mainstream customers used to buying digital media, there was a time when services like iTunes was never going to work for music. YouTube has given people the idea if it's online video it ought to be free. Which is a nonsense. With decent broadband, the right tv, or decoder box, you can watch quality HD through our tv. Indeed if 4k takes off the only way to watch 4k content may require bit torrent style peer to peer delivery down the broadband cable. That's not coming for free.

Derek Smith

49,670 posts

277 months

Tuesday 28th May 2013
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StevieBee said:
The detail is within the prospectus in anticipation of floatation. Such documents are well known for containing much wonderfully potential profit making plans and ideas, not all of which comes to fruition once floated.

Whether or not this does so will depend upon whether it's actually possible to turn a profit once you've installed the means to police it which is very difficult and the number of likely subscribers or people willing to pay per view. Personally, I'm not so sure this is a financially viable thing.
Indeed.

The situation that F1 finds itself with regards the TV rights is virtually unique in sports. Further, it is all based on a name, a title, a logo: Formula 1.

There are considerable problems with the current package and the tyre situation is a bit of sticking plaster that is, literally, falling apart.

The current row over tyre testing shows the problem. Two powerful parts of the circus, Pirelli and Mercedes, are under threat of censure. What penalty can the FIA impose? They, the FIA, needs income and a juicy fine is just the ticket, but neither Pirelli nor Mercedes 'need' F1. Indeed, if Merc left the sport for reasons of principle, they would have saved a considerable amount of money and the board would e a pleasanter place to be. I don't think an exit is likely but the possibility of it will limit the FIA.

Pirelli still (AFAIK) hasn't singed on the dotted for 2014. This is brinkmanship and most people seem of the opinion that they will sign. But it is not much of a threat if no one believes that refusing is not a possibility. I for one cannot see what they get from supplying tyres that last minutes.

F1 will be at its most vulnerable in the next 12 months or so. If the new, untried, formula is not a success who knows what might happen? It needs Merc and it needs Pirelli, especially for the flotation.

Oakey

27,981 posts

245 months

Tuesday 28th May 2013
quotequote all
Northern Munkee said:
The world of television is changing. It's an obvious step, to run side by side with existing outlets for now. Say you bin your sky subscription as you "only got it for F1", he charges you say £20 a race to live stream it given Sky churned out a 5.5 hr broadcast that would still save you money, be fair value and put more money in the FOM coffers. The advantage that F1's brand is well known, policing the scum who rip off original content and rebroadcast it without permission would require either new tech or heavy political lobbying for better control of the Internet I'm sure both are already in the works. i was reading somewhere that the key to this side of marketing is email addresses. Getting an audience to register then tailor offers & content accordingly. The question is how the revenue is divided and the impact it might have on team sponsors and the loss of exposure in territories where it might be pay per view only. Devil in the detail...

Paying for video content online as a stream or download has already begun, and it's just getting mainstream customers used to buying digital media, there was a time when services like iTunes was never going to work for music. YouTube has given people the idea if it's online video it ought to be free. Which is a nonsense. With decent broadband, the right tv, or decoder box, you can watch quality HD through our tv. Indeed if 4k takes off the only way to watch 4k content may require bit torrent style peer to peer delivery down the broadband cable. That's not coming for free.
Erm, it's only £9.99 a race on NowTV.

Rude-boy

22,227 posts

262 months

Tuesday 28th May 2013
quotequote all
Oakey said:
Erm, it's only £9.99 a race on NowTV.
Indeed.

For £5 a race (or about £200 per year) I would junk Sky and go with this. Any more and I might as well pay the extra and have Motors and so on. In any event I see half the cost of my sub as PCP for the recorder.

Great Dane

2,897 posts

195 months

Tuesday 28th May 2013
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why bother wec and elms are free and much much better formula ZZZZZZ gave up years ago

stephen300o

15,464 posts

257 months

Tuesday 28th May 2013
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Great Dane said:
why bother wec and elms are free and much much better formula ZZZZZZ gave up years ago
Really? Those barely have a pulse. Constantly fiddling trying to get an audience.

Oh yeah, almost forgot, ooh, that Bernie is an evil so and so, etcetera.

TheHeretic

73,668 posts

284 months

Tuesday 28th May 2013
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Great Dane said:
why bother wec and elms are free and much much better formula ZZZZZZ gave up years ago
Makes me wonder why you even came into a thread about F1.

Great Dane

2,897 posts

195 months

Tuesday 28th May 2013
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I am just curious of all the knots F1 fans want to tie themselves into to watch it..

zac510

5,546 posts

235 months

Tuesday 28th May 2013
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Oakey said:
Erm, it's only £9.99 a race on NowTV.
Not really; a race is a race weekend to most fans so that means 3 24 hour periods and £30 per race weekend, £600 per year.
£400 if you reduce that to just qualifying+race.

StevieBee

15,278 posts

284 months

Wednesday 29th May 2013
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Great Dane said:
I am just curious of all the knots F1 fans want to tie themselves into to watch it..
It's not quite a straightforward as this (though many do tie themselves in knots!).

Of the 60 or so countries that pay to carry the F1 TV feed, very few are of the level that we have in the UK, which, putting aside any other argument, is excellent. Many countries will pay for something akin to what the BBC has, quite often, less. This affords little more than a 1 hour programme at some obscure hour of the day.

CVC want more countries to go the Sky route and pay accordingly. This, they are unlikely to do if people can watch online for free.

Derek Smith

49,670 posts

277 months

Wednesday 29th May 2013
quotequote all
StevieBee said:
It's not quite a straightforward as this (though many do tie themselves in knots!).

Of the 60 or so countries that pay to carry the F1 TV feed, very few are of the level that we have in the UK, which, putting aside any other argument, is excellent. Many countries will pay for something akin to what the BBC has, quite often, less. This affords little more than a 1 hour programme at some obscure hour of the day.

CVC want more countries to go the Sky route and pay accordingly. This, they are unlikely to do if people can watch online for free.
Ecclestone tried to keep F1 free to air as this is what the advertisers want. By going fully Sky, CVC is, in effect, selling the TV rights to one broadcaster. If, as appears likely, the viewing figures drop in those countries where there is no free to air broadcasting, then the advertisers at the circuit are receiving less coverage and, one assumes, CVC's income will drop.

I don't know if Sky's fee will cover this or not, although I would have thought it unlikely.

Everything that CVC/Ecclestone have been doing over the last couple of years has been concentrated on upping the floatation price. They have no other target. The argument about TV coverage, free to air and such, is of little concern at this stage.

Ecclestone's replacement, and one would assume this would be fairly soon after the floatation, will have to make a number of vital decisions. And they will be critical for the life of F1.

Sea Demon

1,168 posts

242 months

Wednesday 29th May 2013
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It'll get to the point where people will say enough is enough & just wont pay for it and it'll end up back on the BBC - plenty of other things to watch in the meantime.