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Speaker 1: Already and this is this is the Daily Art.

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Speaker 2: This is the Daily OS.

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Speaker 3: Oh, now it makes sense. Good morning and welcome to

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Speaker 3: the Daily OS. It's Wednesday, the twenty seventh of November.

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Speaker 2: I'm Emma and I'm George.

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Speaker 3: George is our sports journalist. He's joining us today for

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Speaker 3: a very special EP. George, Welcome back.

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Speaker 2: Thanks, it's great to be on the pod.

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Speaker 1: Today.

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Speaker 3: We're talking about streaming services and their growing investment in

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Speaker 3: sports broadcast and storytelling, which is shifting the way that

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Speaker 3: audiences engage with sports. This week, Formula one confirmed a

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Speaker 3: US car Giant is joining the F one grid in

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Speaker 3: twenty twenty six. Now it comes off the back of

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Speaker 3: the global hit Netflix Docko.

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Speaker 1: Series Drive to Survive. While we can't say for.

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Speaker 3: Certain that the show is responsible for the deal directly,

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Speaker 3: it's hard to beat all the success of Drive to

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Speaker 3: Survive in bringing F one to American audiences and raising

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Speaker 3: the profile of the sport everywhere. Just the other week,

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Speaker 3: a boxing match streamed on Netflix saw millions tune in

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Speaker 3: around the world. The event even included the most watched

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Speaker 3: professional women's sporting event in US history. I'm talking about

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Speaker 3: the Katie Taylor, Amanda Serrano about ahead of the Mike

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Speaker 3: Tyson Jake Pole match. More on that later, but docuseriies

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Speaker 3: like The Last Dance, Simone Biles Rising, and most notably,

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Speaker 3: Drive to Survive are all examples of Netflix's successful investment

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Speaker 3: in sports stories. Who better to talk us through this

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Speaker 3: topic today than tda's sports journalist George Finlayson. George, Welcome

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Speaker 3: back to the podcast. Let's talk about this announcement first.

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Speaker 3: What do we need to know about the GM Cadillac news.

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Speaker 2: Yeah, for sure. So basically, Formula one announced on Monday

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Speaker 2: this week that had reached an agreement in principle with

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Speaker 2: General Motors, which is a massive American car company. They're

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Speaker 2: one of the Big three alongside Ford and Dodge, and

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Speaker 2: they've reached an agreement in principle to support General Motors

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Speaker 2: in bringing a team onto the F one grid in

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Speaker 2: twenty twenty six. So it's expanding from ten teams to

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Speaker 2: eleven teams.

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Speaker 1: So that's pretty significant because it's massive.

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Speaker 3: We might see like the owner of a team or

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Speaker 3: the brand name of a team change, but it's always

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Speaker 3: ten on the grid.

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Speaker 2: Yeah, and it's been ten since about twenty seventeen when

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Speaker 2: has joined and they're also an American team, so you

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Speaker 2: can see that even before Drive to Survive, Formula One

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Speaker 2: was making a move towards the US and the massive

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Speaker 2: American market.

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Speaker 3: And that's really expanded in the last few years as

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Speaker 3: we've seen. How much of that growth can be traced

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Speaker 3: back to the TV show Drive to Survive.

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Speaker 1: Tell me about that context.

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Speaker 2: Well, Basically before twenty nineteen, when the series first aired,

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Speaker 2: Formula One was pretty much a European sport. A lot

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Speaker 2: of the racers were in Europe, a lot of the

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Speaker 2: fans were in Europe, A.

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Speaker 1: Lot of the drivers were European.

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Speaker 2: Yeah, a lot of the drivers were Europeans. So it

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Speaker 2: was essentially a bunch of European stakeholders investing in and

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Speaker 2: caring about a European sport. And Drive to Survive has

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Speaker 2: changed that. It's pretty much a global phenomenon now.

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Speaker 3: So I'm going to ask you to give us some

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Speaker 3: numbers to contextualize how much of a phenomenon, but just anecdotally,

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Speaker 3: I do feel like this is the point at the

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Speaker 3: episode where I have to give my own disclaimer. I'm

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Speaker 3: an absolute massive fiend for F one. I love Drive

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Speaker 3: to Survive. I'm a huge fan of the sport. But

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Speaker 3: I'm not someone who is conventionally interested in sports. I'm

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Speaker 3: not a big fan of any other sport really, but

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Speaker 3: there is something about that series that really just drew

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Speaker 3: me in the storytelling. And I am just one example

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Speaker 3: of I'm sure stacks of people around the world, millions

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Speaker 3: of wins even, who are now big fans of this sport.

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Speaker 1: So tell me about the numbers.

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Speaker 2: Well, yeah, if we look at the numbers, you can

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Speaker 2: see that drive to survive significantly change the demographic of

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Speaker 2: F one fans. I think the most remarkable number is

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Speaker 2: that the percentage of the audience that is women has

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Speaker 2: jumped from eight percent in twenty seventeen to forty percent

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Speaker 2: in twenty twenty two. Wow, which is wild. And it's

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Speaker 2: not just the demographic of the audience, it's bringing a

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Speaker 2: whole new audience to the sport itself. So the same

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Speaker 2: survey in twenty twenty two revealed that thirty four percent

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Speaker 2: of current F one fans discovered the sport through the

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Speaker 2: Netflix series.

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Speaker 3: It's huge numbers when you consider one in every three

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Speaker 3: people in the stands potentially on a race weekend are

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Speaker 3: there because of.

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Speaker 1: A Netflix show.

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Speaker 3: Absolutely so, George It's obviously a staggering shift for the sport,

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Speaker 3: but it's not the first time we've seen the kind

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Speaker 3: of store retelling doco style device used to engage audiences

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Speaker 3: in sport. Tell me about this concept called the escalator effect.

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Speaker 2: Okay, Well, I came across this concept in my research

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Speaker 2: and I was looking a little bit into It's where

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Speaker 2: I got these numbers from about Drive to Survive and stuff.

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Speaker 2: He's a journalist, I'm a journalist. So basically, the escalator

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Speaker 2: effect is a strategy where the fans are introduced to

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Speaker 2: a sport through compelling human storytelling. So you look at

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Speaker 2: Drive to Survive, it didn't just show the fast cars

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Speaker 2: racing around a nondescript track somewhere in Europe or in

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Speaker 2: the US. It took us behind the scenes. It made

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Speaker 2: the audience a fly on the wall, and it revealed

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Speaker 2: the personalities, the conflicts, and the human drama behind the sport, which,

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Speaker 2: as we know as people who watched the show, there

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Speaker 2: is so much of and there's so much to lift

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Speaker 2: the lid on in f one.

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Speaker 3: Yeah, I think it's erring people in to care about

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Speaker 3: the people at the heart of the sport, and once

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Speaker 3: you care about those individuals, you start to care more

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Speaker 3: about the sport itself and the whole competition.

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Speaker 2: Yeah, exactly. So if we think about the way it's

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Speaker 2: changed the profile of the sport, you think about people

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Speaker 2: like Lewis Hamilton. He was one of the household names

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Speaker 2: that he transcended the sport without Drive to Survive. He

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Speaker 2: didn't need Drive to.

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Speaker 3: Survive before I watched Drive to Survive. He's probably the

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Speaker 3: only driver I could have named for you.

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Speaker 2: He's an incredibly marketable and successful driver. Most importantly, he's

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Speaker 2: won seven world titles. But now we have drivers further

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Speaker 2: down the grid, like a I don't know, a Pierre

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Speaker 2: Gasly or a even a Toto Wolf for team principal,

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Speaker 2: someone that people outside the sport, even fans of the sport,

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Speaker 2: probably wouldn't know who they were intimately until the series,

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Speaker 2: and they've become mainstream celebrities with massive social media followings.

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Speaker 3: We'll be back with more of today's deep dive right

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Speaker 3: after this. I think that example of the team principles

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Speaker 3: is fascinating. If you had told me several years ago,

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Speaker 3: you know that millions of people around the world would

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Speaker 3: care about like the senior leadership of a brand a

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Speaker 3: sporting brand's body, its.

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Speaker 1: Management, its senior engineers.

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Speaker 3: I would have thought that was a hard sell, but

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Speaker 3: you're saying that this show essentially humanizes these characters and

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Speaker 3: that's how it makes us care.

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Speaker 2: Yeah, at the end of the day, they are just

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Speaker 2: sport administrators. But I guess it's like suits. It makes

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Speaker 2: law really dramatic and really interesting.

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Speaker 1: Suits LA coming next year.

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Speaker 3: So, I mean we've spoken a lot about F one here, George,

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Speaker 3: but obviously we're using it as an example to talk

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Speaker 3: about the broader concept of sports entertainment, changing audience behaviors

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Speaker 3: and growing sports brands.

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Speaker 1: Talk to me about the.

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Speaker 3: Dollar value that Drive to Survive has influenced when it

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Speaker 3: comes to F one's success. What can we learn from

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Speaker 3: that to understand this concept more broadly.

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Speaker 2: Yeah, so it hasn't just grown the audience. It's had

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Speaker 2: a financial impact. And I think one of the key

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Speaker 2: examples that shows us the growth of the sport is

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Speaker 2: the broadcasting rights. So before Drive to Survive, ESPN a

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Speaker 2: US broadcasters deal with Formula one was about five million

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Speaker 2: dollars annually.

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Speaker 3: So ESPN would pay F one five million bucks a

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Speaker 3: year for the right to show those races in.

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Speaker 2: The US, and that's that is a number based on

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Speaker 2: how many eyeballs are going to be glued to TV screens.

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Speaker 2: And a whole nother story is AD revenue and all

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Speaker 2: that sorts of stuff. But now that deal, that same

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Speaker 2: deal is worth somewhere between seventy five and ninety million dollars,

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Speaker 2: which is a massive jump.

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Speaker 3: So ESPN are now paying. I'm not quick at maths,

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Speaker 3: but we've gone from five mil to seventy five to

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Speaker 3: ninety million a pretty quick window. I know also that

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Speaker 3: attendance has skyrocketed.

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Speaker 1: You mentioned there are more races in the US.

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Speaker 3: How have the boots on the ground numbers shifted come

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Speaker 3: race weekends?

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Speaker 2: Yeah? So well, in twenty twenty two, the US Grand

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Speaker 2: Prix in Austin saw a record breaking attendance of four

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Speaker 2: hundred and forty thousand fans. I mean, that's over three days,

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Speaker 2: But four hundred and forty thousand fans is a lot

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Speaker 2: of people.

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Speaker 3: And that's a forty percent increase from twenty eighteen exactly,

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Speaker 3: So the numbers really do speak for themselves. I'm also

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Speaker 3: thinking while you're saying this, George, not that I'm not

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Speaker 3: so engrossed in it, but I've got that song that

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Speaker 3: Max mustappen.

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Speaker 1: Red full song in my head, you know, the one

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Speaker 1: that's like Mars for staff.

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Speaker 3: So I mean we're talking about crossing cultural barriers here.

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Speaker 3: So essentially we're saying Netflix has globalized what was once

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Speaker 3: a European or a European dominated sport and market. But

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Speaker 3: it feels like this is really feeding into a bigger

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Speaker 3: sports marketing, which brings us to more recently, earlier this month,

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Speaker 3: a pretty big boxing match that Netflix streamed.

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Speaker 2: Yeah. So another a really great example of how sports

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Speaker 2: content is being created and consumed is the recent fight

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Speaker 2: between Jake Paul and Mike Tyson. Look, if you're listening

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Speaker 2: to this, you probably couldn't avoid knowing about it, even

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Speaker 2: if you have zero interest in boxing. So the fight

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Speaker 2: between Paul and Tyson was Netflix's first fur a into

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Speaker 2: live streaming an event with such a massive profile, and

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Speaker 2: they had sixty million households tune in to watch a

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Speaker 2: fifty eight year old former heavyweight champion who was a

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Speaker 2: heavyweight champion when he was twenty thirty eight years ago

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Speaker 2: take on a twenty seven year old YouTuber with a

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Speaker 2: subscriber base of twenty million. That doesn't mean anything in

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Speaker 2: the boxing world, or it didn't used to how it

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Speaker 2: does apparently.

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Speaker 3: I think this really speaks to the shift that you're

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Speaker 3: explaining in terms of the relationship between sports content and audiences.

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Speaker 3: We've got two personalities who, on their own, it seems,

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Speaker 3: present an opportunity to bring in new audiences. You know,

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Speaker 3: You've got maybe the old school fans of Mike Tyson

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Speaker 3: who might not otherwise have been that invested in participating

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Speaker 3: in Netflix's live streaming events. And then you've also got

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Speaker 3: this huge audience that Jake Paul brings, which I guess

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Speaker 3: is bigger than boxing and speaks to your point about

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Speaker 3: how streaming and entertainment has really disrupted traditional sports broadcasting.

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Speaker 2: Yeah. So, traditionally, audience would have had to pay to

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Speaker 2: watch these types of heavyweight matches, So you would have

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Speaker 2: had to be a serious fan of boxing to fork

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Speaker 2: out fifty dollars and go, I want to watch this

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Speaker 2: fight on a Saturday.

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Speaker 3: Whether it's the classic pay per view, right, yeah, pay

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Speaker 3: per view.

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Speaker 2: Yeah, but this one was beamed into homes in over

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Speaker 2: one hundred and ninety countries on Netflix. And because Netflix's

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Speaker 2: reach is so strong, there's no reason for someone who

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Speaker 2: has a subscription to Netflix to not watch the fight.

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Speaker 3: Yeah, I mean, of course it wasn't without its problems.

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Speaker 3: There was some buffering issues, some teething tech issues and

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Speaker 3: bugs that I'm sure Netflix will be looking to iron

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Speaker 3: out before their next big streaming events. But that being said,

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Speaker 3: you know, I happened to be at a pub when

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Speaker 3: that fight was happening. The TVs were buffering and frozen.

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Speaker 3: Everyone around me just pulled out their phones and they

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Speaker 3: started watching this fight on five G on their smartphones

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Speaker 3: because they could. So we've spoken about the storytelling, the

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Speaker 3: docu series, the Drive to Survives. We've got this fight,

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Speaker 3: this live sporting event example. Is the plan to extend

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Speaker 3: this model across other sporting events? Is this going to

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Speaker 3: be the new norm seeing sport on Netflix?

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Speaker 2: Yeah, well it's not just boxing that's recognized the business

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Speaker 2: opportunity here, And for example, the WWA World Wrestling Entertainment

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Speaker 2: signed an i wading ten year US five billion dollar

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Speaker 2: that's seven point seven billion dollars Australian live streaming deal

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Speaker 2: with Netflix in January.

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Speaker 3: That is a huge amount of money to bring that

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Speaker 3: sport to the platform. So I guess we're talking about

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Speaker 3: two opportunities here. You know, there's the live event market

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Speaker 3: and then there's the behind the scenes doco filmmaking stuff.

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Speaker 3: We've become more accustomed, I guess, to seeing the doco

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Speaker 3: style stuff on the streamers. Do you think that's why

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Speaker 3: we're only just now seeing streaming used for these global

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Speaker 3: live sporting moments. Is it an opportunity that's kind of

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Speaker 3: been leveraged off the.

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Speaker 1: Back of the doco? Is it a chicken egg situation.

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Speaker 2: Or no, that's that's spot on. You can't look past

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Speaker 2: the role of resourcing here and the sheer scope of

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Speaker 2: a Netflix style production arm to make high quality documentary content.

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Speaker 2: And there's a really clear example of this if we

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Speaker 2: look back to the Paul and Tyson fight. In the

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Speaker 2: lead up to the fight, Netflix released a three part

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Speaker 2: doco series titled Countdown Paul Versuti, giving few as a

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Speaker 2: similar kind of drive to survive experience of how these

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Speaker 2: two boxers were preparing them for the fight, which in

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Speaker 2: turn led to more people tuning in on the day

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Speaker 2: of the fight.

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Speaker 3: Well, exactly, it's a genius marketing strategy. The timing of

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Speaker 3: that three part series. There is a call to action

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Speaker 3: at the end of that you go, okay, I've watched

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Speaker 3: this series now I'm emotionally invested, and look at that,

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Speaker 3: in a few weeks time, I can just watch this

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Speaker 3: fight live on Netflix. I don't need to sign up

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Speaker 3: to anything. I don't need to pay anything. The relationship

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Speaker 3: speaks for itself. We've got the personalities George, the struggles,

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Speaker 3: the emotion, behind the athletes, behind the sports. It's no

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Speaker 3: longer just about the sport. It's about that human narrative.

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Speaker 3: Any predictions on where this is heading.

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Speaker 2: I think we're just seeing the beginning. I mean, these

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Speaker 2: platforms are becoming more than broadcasters. They're storyteller's, marketing machines

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Speaker 2: and audience cre The line between entertainment and sports is

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Speaker 2: kind of blurring.

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Speaker 1: How does that make you feel as a sports fan?

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Speaker 3: Because for me, as a non sport person, I find

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Speaker 3: it exciting that there are stories out there that I

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Speaker 3: don't fully have my head around, but that I can

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Speaker 3: connect with. I felt very disconnected from sport. I guess

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Speaker 3: in lots of instances, But I guess there would be

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Speaker 3: traditionalists who don't like it. There'd be people in the

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Speaker 3: stands at Grand Prix races thinking I can't believe I'm

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Speaker 3: stuck here. With all these people jumping on a bandwagon

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Speaker 3: when I'm a day wer.

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Speaker 2: Yeah, it's exciting and it's a little bit scary. I

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Speaker 2: think where it could go wrong is when sports becomes

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Speaker 2: a little bit too much like reality TV or you start.

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Speaker 2: I think one of the main problems with the Paul

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Speaker 2: Tyson fight was should those two guys really be fighting?

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Speaker 2: So are there things that are really pure sport or

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Speaker 2: are they just being done for an audience.

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Speaker 3: It'll be interesting to see as wellarticularly for an Australian audience,

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Speaker 3: how this impacts the accessibility of sport. You know, from

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Speaker 3: a free TV perspective, there are you know, specific laws

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Speaker 3: regulations around broadcast deals and rights audiences, you know, and

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Speaker 3: the arguable right that they have to access sport for

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Speaker 3: free versus you know, paying a subscription fee to have

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Speaker 3: to watch their favorite sports.

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Speaker 2: Yeah, and that's a whole other story, a.

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Speaker 1: Whole nother story for a different day.

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Speaker 3: George, thank you so much for joining us today and

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Speaker 3: breaking all of that down for us.

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Speaker 1: We really appreciate it.

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Speaker 2: An absolute pleasure, loved it.

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Speaker 3: And if you want more from George, he actually writes

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Speaker 3: a newsletter, our sports newsletter, every single day It's free

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Speaker 3: to sign up. You'll get an email at five o'clock

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Speaker 3: every afternoon with everything you need to know about the

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Speaker 3: world of sports from that day. I highly recommend there

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Speaker 3: is something in the sports newsletter for sports fans new

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Speaker 3: and old. We will put a link to that in

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Speaker 3: the show notes.

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Speaker 1: To sign up.

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Speaker 3: We'll be back a little later with this evening's headlines,

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Speaker 3: but until then, have a good one.

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