Formula One could be the next sport to land a deal with Amazon.
The series is reportedly in “active” talks with the e-commerce giant about streaming deals for its Grand Prix races as it looks to unlock new revenue streams. F1 incurred $363 million in operating losses through the first nine months of 2020.
“They’re [an] incredibly important potential partner and an opportunity for us to expand and grow our business,” F1 CEO Chase Carey, who is stepping down this month, told the Financial Times.
F1, like most major sports entities these days, is seeking ways to capture younger viewers. As of January 2019, 14% of F1 viewers were under 25 years old.
A deal with Amazon would help F1 appeal to cord-cutters, as 87% of Americans aged 18-25 access TV content via the internet, according to PwC. Cable TV is projected to see its highest ever one-year drop in subscribers by the end of 2020.
Amazon already owns live streaming rights to 13 NFL games per season, the English Premier League, and is growing its cricket offerings in India. The company pays about $65 million annually for its Thursday night NFL rights, approximately a tenth of what Fox pays to telecast them.
F1’s most lucrative broadcast deal — a 10-year agreement with Sky in the U.K. — is worth $250 million annually through 2024.