Formula 1 Evolves from Series to Cultural Phenomenon in a Decade

Derek Chang, the new CEO of Liberty Media, believes that Formula 1 has undergone a remarkable transformation over the past decade, moving beyond its core motorsports roots and becoming a cultural phenomenon. Chang took over from Greg Maffei at the start of January, eight years after Liberty completed its acquisition of F1.

A Broader Audience and New Markets

The changes initiated by Liberty have resulted in an increased interest from a younger demographic and women, as well as a surge of American interest with races added in Miami and Las Vegas. Chang attributes this shift to the series’ elevation to a new level.

When Liberty acquired Formula 1, it was very much a core motorsports activation,” said Chang. “What we’ve done over the last 10 years under the stewardship of Chase Carey and then Stefano [Domenicali] is really make this thing a cultural phenomenon that’s gone well beyond a core sports product.

The compelling on-track action forms the basis, but F1 has expanded into a broader entertainment asset. This transformation is evident in shows like Drive to Survive and the upcoming Apple movie, set to be released this summer, which Chang believes will renew interest in the sport.

Engaging with Drivers and Brands

The increased interest in drivers’ lives off the track has also contributed to F1’s growth. This shift has attracted new brands, moving from traditional B2B companies to customer-facing brands, enhancing fan engagement away from the track.

Recent deals signed by F1 serve as examples of this expansion. For instance, the partnership with Disney and last year’s deal with Lego have brought spectacles like life-size cars on the track.

Expanding into the Chinese Market

While brands and fans continue to pour in from around the world, there is still significant room for growth in the massive Chinese market. The Shanghai Grand Prix has been a fixture on the calendar for 20 years, but outside of the race, engagement remains relatively low, including among partners.

As a former CEO of the NBA in China, Chang is keen to expand into this vast market. He acknowledges that COVID setbacks have delayed growth, but he sees potential for continued expansion due to the Chinese audience’s love for sports and brands.

We can continue to grow in China,” said Chang. “We were set back with COVID because we didn’t run a race there for four years, but there is a legacy and a history of F1 in China.

Despite being the world’s most populous country, F1 still has room to grow in China. The sport is on major social media platforms and broadcast on Tencent and CCTV, but Chang believes more investment is needed to fully capitalize on this market.

We do need to continue to build there and invest in the sport there,” said Chang. “It’s such a big market and such a big market for major consumer brands that we really want to continue to develop that.