Under the new contract, NBC will broadcast eight races, including the Indy 500, free-to-air as opposed to five under the previous contract with ABC. According to an AP article, NBC will also broadcast the 500 qualifications free-to-air, like ABC has done. The rest of the races will be broadcast on NBC Sports Network on cable, and all races will be live streamed to authenticated subscribers on NBCSports.com and the NBC Sports app.
In addition to the coverage on NBC and NBCSN, NBC Sports Gold will offer a streaming package including the practice and qualifying sessions not shown live on TV as well as the Indy Lights races and full-event replays.
NBC becoming the sole broadcaster of INDYCAR is positive for a number of reasons. First of all, it will end the confusing split between two broadcasters. For example, the upcoming schedule shown in ABC's telecast from the season opener in St. Petersburg excluded the upcoming three races shown on NBCSN and listed only the Month of May shown on ABC.
Secondly, NBC has done superior work with their cable broadcasts compared to ABC's broadcasts. NBC's commentators have done better job than their colleagues on ABC and as have also NBC's TV directors. Not only that but they have also reserved more time for the pre- and postrace coverage on NBCSN and have even televised some practice and qualifying sessions unlike ABC.
Most importantly, NBC seems more committed to covering INDYCAR than ABC and ESPN have been. I can't watch the American broadcasters here in Finland but as far as I know, ABC has done little to promote their INDYCAR coverage. For example, during the season-opening St. Petersburg weekend, I couldn't see any mention about INDYCAR on ABC or ESPN's Twitter accounts. On the other hand, NBC provided updates also from that race despite not broadcasting it.
NBCSN has grown the audience of its INDYCAR cable broadcasts by 78 percent since 2013. Meanwhile the growth of INDYCAR's free-to-air audience has stalled on ABC and the Indy 500 earned its lowest TV rating ever last year. It was time to move away from ABC.
I believe NBC can take the INDYCAR coverage to a new level. Not only their broadcasts have been superior to ABC's but they also appear to be more committed to covering the sport. ABC and ESPN have done little to cover the series besides fulfilling the broadcasting commitments as opposed to NBC whose motorsports department provides updates from the sport also between the races.
The increased number of races that will be shown free-to-air will increase the reach of the series and is also a promising sign of the state of INDYCAR. The Indy 500 will be a part of NBC's Championship Season alongside other sports' marquee events and should get the attention it deserves. NBC has already revived the Kentucky Derby's TV ratings after years of decline on ABC. The 500 is in a similar situation now, going from ABC to NBC.
As opposed to the previous six-year contract with ABC and ten-year contract with NBCSN (previously Versus), this new NBC contract is only three years. I think having a short contract now can be a good thing for INDYCAR as the media landscape is undergoing some big changes. Also, there are so many positive things around INDYCAR now that in three years the series can be in an even better position for the contract negotiations.
NBC Sports Gold complements coverage but doesn't replace cable yet
What is new in the new broadcasting contract is NBC's coverage from all practice and qualifying sessions on NBC Sports Gold. That will apparently be the end of the free streaming of those sessions on YouTube, though the wording of the announcement implies some of them may possibly be televised. The NBC Sports Gold package will also include full-event replays, which I hope won't be the end of race uploads on YouTube. That would be a step backwards, especially when also NASCAR uploads their races to YouTube.
This NBC Sports Gold package is probably NBC and INDYCAR dipping their toes into over-the-top offering, though mostly this is NBC offering the content that doesn't fit their TV channels' programming. This package still doesn't answer the demand to offer an alternative for cable subscription, like MotoGP does with the Videopass and now also F1 with the F1 TV OTT service.
Over-the-top services are challenging the traditional business model of sports broadcasters. People don't want to pay for cable channels if there is a less expensive way to watch exactly what they want to see. There are surely fans without a cable subscription who would subscribe to an all-inclusive INDYCAR OTT package. Then again, even a cable channel can be a great display window for INDYCAR to reach those people who wouldn't subscribe to the OTT package. Last year NBCSN reached 71 percent of American households, though the trend of cord cutting may bring that number down considerably in the near future.
The way I see the future of INDYCAR broadcasting, broadcast television will remain an effective media long into the future to reach and gain fans. It's important to have a high number of races shown free-to-air. Though the increasing rate of cord cutting will reduce the potential reach of the cable broadcasts. After this new contract will have expired in 2021, I hope INDYCAR will offer an all-inclusive OTT package to reach those fans without a cable subscription, instead of losing them to F1 and other series which have one.
For an OTT service, I think a platform like NBC Sports Gold would be better for INDYCAR than an own service. Using an existing platform wouldn't require investing in an own platform and the OTT package could be integrated in the broadcaster's INDYCAR offering. Being affiliated with a broadcaster has certain valuable benefits, like the coverage across the broadcaster's different platforms and cross-promotion in other programming.
Of course, it may be difficult to convince a broadcaster offering an OTT alternative for the cable subscription. The OTT offering for 2019 is still protecting the traditional business model where you need a cable subscription to see the races on NBCSN. However, that model may not have much life left; people will find something alternative to watch. Broadcasters are missing potential customers by not offering OTT packages specific to certain content. Starting to offer that kind of packages could be the traditional broadcasters' response to the new OTT services. Besides, in INDYCAR's case, an all-inclusive OTT package could also open new possibilities as that broadcaster's platform could also be used for the international streaming.
What will happen with international TV rights?
Just like the current national broadcasting contract with ABC and NBCSN expires at the end of this year, so does also the international broadcasting contract with ESPN International. ESPN International has shown INDYCAR on their local channels around the world or distributed the rights to third parties plus. ESPN Player has offered streaming of the races in Europe, Middle East, and Africa apart from certain regions with local broadcasters.
NBC Sports Gold offers some packages also for overseas viewers so that could be an international streaming platform if the American OTT package were expanded with race coverage. However, compared to ESPN, NBCUniversal doesn't have appropriate TV channels for INDYCAR outside the USA so it seems unlikely for the international broadcasting partner, unless they acquired those rights only for redistributing them and offering NBC Sports Gold for streaming.
Although ESPN and ABC won't broadcast INDYCAR in the USA after this year, ESPN International may still be a strong candidate for the international broadcasting partner. ESPN's numerous international channels show also sports they have no broadcasting rights in the USA.
However, I think there's lots of room for improvement in ESPN International's INDYCAR coverage. ESPN Player hasn't shown the pre- or postrace coverage of the NBCSN broadcasts, neither have they shown those practice or qualifying sessions that were on NBCSN and thus not in YouTube. Whatever broadcaster INDYCAR chooses as the international distributor, I hope they will be required to show all sessions of the race weekends, preferably including NBC's pre- and postrace coverage or offering their own.
I'm not sure selling the international broadcasting rights to a single distributor is ideal for INDYCAR. INDYCAR has no control over which channels the distributor will sell the regional rights to. A third party selling the TV rights isn't thinking about the growth of the sport the way INDYCAR is.
When I think about appropriate overseas broadcasters, BT Sport is doing great job in the UK. Their broadcasting rights obviously come from their affiliation with ESPN, though regardless of the international broadcasting partner, they would be a great broadcaster for INDYCAR also in the upcoming seasons. BT Sport isn't just broadcasting the world feed, instead they have British commentators on air when their American colleagues are on a commercial break. If anything, simulcasting the BT Sport broadcast would be ideal for any broadcaster with no commercial breaks.
When I think about Europe in general, I'd like to see Eurosport broadcasting INDYCAR like they did in the CART era. They already have series like Formula E, FIA WEC, WorldSBK, and WTCR, so INDYCAR could complement Eurosports motorsports offering. In addition to their two main channels, Eurosport Player allows additional streams for other live events. If the races were shown on the main channel, Eurosport Player's additional channels could stream the practice and qualifying sessions.
Besides, Eurosport's parent Discovery owns free-to-air channels across Europe which were used to fulfill the local free-to-air requirements of the Olympic coverage. Here in Finland, Discovery uses those channels also to show tennis' Grand Slam finals in addition to the full coverage on Eurosport, and I think they might do the same with the Indy 500. And while Eurosport is available across Europe, they have somewhat different programming in different countries, depending on the local TV rights. INDYCAR could sell the British TV rights to BT Sport while the rest of Europe could watch it on Eurosport.
Those are just some potential European broadcasters for INDYCAR. I think it would be better for the series to sell the TV rights directly to broadcasters, instead of selling them to a global distributor.
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