F1 movie delivers major impact on Liberty Media finances

This summer’s F1 movie proved a financial hit and after breaking Brad Pitt’s box office record for any of his previous projects, the verdict has now come in over how the film impacted the sport as a company.

The world’s most prestigious open-wheel single-seater championship has received a boost in revenue for this quarter, as well as the cultural reach of the sport expanding globally.

The Formula One Group, which is owned by Liberty Media, were handed a one-time revenue increase following the release of the F1 movie in late June this year, which contributed significantly to a 40 per cent rise in revenue year-over-year to hit $1 billion.

Other factors for the sport’s growth included a rising number in F1 TV subscriptions, a positive sign for the movie’s cultural impact on the sport.

Speaking during Liberty Media’s recent earnings call, Formula 1 president Stefano Domenicali spoke on the positive impact of the summer’s blockbuster hit and how the production will continue to help generate revenue around the sport.

“I would say the effect of the movie is not only of course about the dollars and economical input, but the sport will have an incredible opportunity to grow its awareness and to generate, I would say, the circular economy around that,” Domenicali said.

The F1 movie starred Brad Pitt and Damson Idris

F1 movie just the beginning for Liberty Media

Less than two months after the movie hit cinemas, ‘F1’ has now surpassed $545m (£410m) at the global box office, making it Pitt’s most successful project.

Interest in the sport is already increasing, with Domenicali revealing that live viewership is up 7 per cent season to date compared to last year in the US, with F1 remaining the fastest growing major sport on social media, an area that the F1 movie marketing largely succeeded in.

Domenicali continued, detailing how the Formula One Group and Liberty Media were yet to see the full financial potential brought to the sport through the release of the F1 movie.

“If you think that after just couple of weeks, the movie itself brought more than $500,000,000 at the back office, it’s something that gives you the amount of interest that is generating. We don’t have to forget that this movie will be out on Apple platform later on at the end of the year,” he added.

As F1 continues to grow and Domenicali and Liberty Media seek further avenues into expansion, the premier class of grand prix motorcycle racing is next on their list of projects after acquiring MotoGP at the end of July.

With 84 per cent ownership of MotoGP, Liberty Media can now ramp up their plans to accelerate the championships global presence, with talks of diversifying revenue by making the sport more accessible in the US market as well.

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