F1: An Industry Ripe for Disruption?

[Moxie]

http://www.virgin.com/entrepreneur/what ... disruption

In another thread this article was linked and the discussion quickly became a debate about the merits of FormulaE and whether it could replace F1. I did not wish to draw away from that discussion, but I do think there is another aspect of the article that is worth discussing. In the F1 technical forum we have discussed the failings of F1 many times, and many of the points seem to be summarized in this article.

Here, I simply ask, is F1 ripe for disruption?

Follow up: Why? Why not? What could replace it?

My answer:

Yes. While I still care about the sport, mainly because of its history, the current incarnation is not south the price I must pay to watch the broadcast. I believe that sports car racing, in particular the WEC, with its multi class format has a lot more to offer the viewers, and the auto companies. F1 is struggling for real world relevance, yet at the same time the turbo diesel used a LeMans has shown a great deal of real world relevance.

[Frafer]

Yes; this sport (as we've saw it during the last years) is going into a wall.
Just too much money in it: they care only about revenues, forgetting the main thing; without costumers you don't have a business, without business you don't have a show.
There is one thing FIA and BERNIE would have to care about: the feelings people have from this sport, and they didn't.
Now the rule book is as big as Bible , cars are ugliest ever, the championship has ended at the start of the season, tickets for the stands starts from around 150 bucks: and, mostly, there is no fun whatsoever.
You can see it from the mean age of the audience: beneath 30's there are a lot less people than ten years ago.

[wesley123]

For something to be disrupted there needs to be someone to disrupt it. F1 doesn't have anything to disrupt it. Yes, there are some big ones from time to time(and now Formula E), but they are never around for long enough in it's form to actually make an impact.

Nothing has ever been that before, and there were some fairly successful efforts, so a safe assumption would be that the same would happen with Formula E.

Currently, Formula E is carried hugely by hype, it got an incredible hype around it for something that has yet to start. Now, can Formula E make the hype be worth it, or will it be below expectations?

It is too soon to say what will happen, but history tells us that f1 has hardly been disrupted ever. And even if it happens, we can see some nice stuff happening from the FIA to aid F1's dominance.

Formula 1 is dominant in a well developped market, such a dominance isn't very easily destroyed.

[rjsa]

http://www.f1technical.net/forum/viewto ... =1&t=19332

Ongoing subject for a while already

[MOWOG]

It seems to me that Formula One is on a collision course with reality. It still enjoys a large television audience but not as large as it could be. The sport is propped up by tyrants and dictators around the world who want people to visit their country but which have no history of motorsport. In China, the stands are only half full. Korea, Turkey, India? Just distant memories as the circus heads off to places like Russia and Azerbaijan.

For those who say the masters of the Formula One universe are oblivious to the wants and needs of the fans, I say, "Amen, brother". I know 20 years ago when I introduced my wife to the sport, she became a passionate and devoted fan. Race weekends were something we looked forward. Qualifying was exciting and when Varsha said "Turn it up" as the lights came on at the starting line, we did.

We don't anymore. In fact, depending on the broadcast time, we might watch a baseball game or some good old fashioned playoff hockey game and buzz through the race some other time courtesy of our DVR.

Bernie may be a certified genius, but there is no way in God's green earth an 83 year old can possibly understand the nuances of today's entertainment market. Formula One reminds me of a former movie idol who has face lift after face lip and spends his/her life reading adoring press clippings from 20 years ago.

I am no fan of NASCAR, but the way they promote their drivers is brilliant. Formula One drivers are seldom seen and we almost never know anything about them personally. In F1, the car is everything. The driver is just an appliance. It is almost impossible for followers of the sport to establish any emotional connection with them. I think that is huge marketing blunder.

The new Advisory Group is a big slap in the face to the 5 second tier teams. So far, Ferrari, Mercedes, McLaren and Red Bull are basically telling the rest of the teams to go --- in their hats and pull it down over their collective ears! Does that seem to be a good long term strategy??

[Moxie]

http://www.virgin.com/entrepreneur/what ... disruption

In another thread this article was linked and the discussion quickly became a debate about the merits of FormulaE and whether it could replace F1. I did not wish to draw away from that discussion, but I do think there is another aspect of the article that is worth discussing.

Yes, there has been a ongoing discussion. The article clearly implies that Formula E is the replacement for F1. That other discussion for good reason is focused on the merits of Formula E. I don't believe that Formula E is the replacement for F1. I do believe that the viewers of F1 and the advertisers that thrive on the viewers, and the automotive manufacturers that want to demonstrate their products in a relevant way may shift their viewing habits/ advertising dollars/ engineering efforts to the detriment of F1. I started this pole and associated thread to open up the possibilities.

[TzeiTzei]

- Is it a sport or is it entertainment? There is more action in the races than never before, but I've found myself being less and less interested about F1. They've made all sorts of changes to spice up the show, but at the same time they've degraded the sporting aspects of F1. I've found myself leaning more and more towards sports car racing when I'm looking for honest racing. Bubble gum tyres, DRS, double points... I don't like them and I have a feeling it's only going to get worse. Jacques Villeneuve put it well when he said that now that F1 has committed to these entertainment gimmicks, there is no going back.

- Regulations, money, politics. The governing body isn't really in control anymore. Bernie and his leeches suck the sport dry. Bigger teams are favoured.

I don't think there is anything to really threathen F1's position, except F1 itself. FormulaE doesn't appeal me, WEC with its long races isn't really for the big masses and it's not as TV friendly.

[Bazza]

For something to be disrupted there needs to be someone to disrupt it. F1 doesn't have anything to disrupt it. Yes, there are some big ones from time to time(and now Formula E), but they are never around for long enough in it's form to actually make an impact.

Nothing has ever been that before, and there were some fairly successful efforts, so a safe assumption would be that the same would happen with Formula E.

Currently, Formula E is carried hugely by hype, it got an incredible hype around it for something that has yet to start. Now, can Formula E make the hype be worth it, or will it be below expectations?

It is too soon to say what will happen, but history tells us that f1 has hardly been disrupted ever. And even if it happens, we can see some nice stuff happening from the FIA to aid F1's dominance.

Formula 1 is dominant in a well developped market, such a dominance isn't very easily destroyed.

Second basically everything here.

Formula E seems to be fairly hype-riding and not very substance based, but it's still early days and there's a chance this won't go the way of A1Gp and Superleague (a very slim chance, that is).

WEC cars may be more relevant to the everyman, and I'm all for a 1000hp Toyota, but they're not exactly good looking. Compared to a F1 car, most things are good looking, but the Audi R18+(?) is the only one that's passably cool. The Porsche, Toyota, Rebellion and all the LMP2 cars are pretty ugly. Same with the GT2 cars (surely they could have come up with something better for the road-based cars?).

Not to say that nothing has ever come close to knocking F1 off it's pedestal. Had the FIA not 'fumbled' the Group C era at a critical time, that'd be what we'd all be watching today. Whether that can be repeated, who knows.

[Cam]

Formula 1 is dominant in a well developped market, such a dominance isn't very easily destroyed.

That's what the roman emperors thought too. F1 is so ripe, if it's not picked soon, it could wither on the vine.

[Richard]

I agree that F1 has the hallmarks of being ripe for disruption, if only because it is certain that all empires have to come to an end. I'd also say that a 100 years from now people will look at the ICE in the same way that we now look at horse powered vehicles.

However, it is not always possible to predict who is going to be then usurper. There are plenty of "next big things" that are forgotten for every success that is remembered. Business literature abounds with confirmation bias due to that.

So is Formula E the nemesis of F1? It'll need to be special given that most start ups and new big things end in ignominy. I suspect it isn't going to be the one, it just doesn't seem exciting enough. It feels contrived as if someone is striving to find something to be the next big thing.

So I'd wager that F1 will be replaced by electric racing and its dominance will end as sure as the sun rises in the morning. Unlike the sun, it's very hard to predict when F1 will end, or how.

ps... I also suspect that F1 will be a bit like the UK monarchy, continually reinventing itself. The ICE will play a smaller role in the powertrain until one day we have a fuel cell powered all electric formula.

[MOWOG]

all empires have to come to an end

Not the US empire. :-" We are exceptional, you know. The ordinary rules do not apply to us. We are born with the innate knowledge that we among all the nations on earth are continuously working to make the world safe for democracy. Just ask Saudi Arabia, Abu Dhabi, Iran, Iraq, Venezuela, Chile, Columbia, Nicaragua, Panama, Honduras, Guatemala and Grenada, and so many more. All of whom have benefited greatly from US beneficence.

Sorry for the off topic intrusion. We now return you to your regular programming, already in progress!

[Moxie]

http://www.autosport.com/news/report.php/id/114278

[MOWOG]

Sounds like Hembry is far more astute than Il Jefe. Maybe HE should replace Bernie at the FOM helm instead of some guy who comes straight out of the world of advertising and marketing.

[Moxie]

Sounds like Hembry is far more astute than Il Jefe. Maybe HE should replace Bernie at the FOM helm instead of some guy who comes straight out of the world of advertising and marketing.

After dropping my subscription to Direct TV we still used out set for Netflix and Hulu, but it went on the fritz two weeks ago and we haven't missed it. We use our computers, and tablets. It is an internet world now, and among the concerns I have about the future of F1, without a doubt the biggest is the lack of internet broadcasts. They don't have to be free, but they do need to be of a reasonable quality at a reasonable price.

I'm a little surprised by Mr.E's comments. Being the self interested business man that he is, I would think that he, or at least his advisors, would be more in tune with making money in the changing world.

[zenji]

F1 is a marketing tool now.
If we want to save the planet we should;
stop buying tuna,
don't buy teak furniture from a warehouse,
use only rechargeable batteries,
recycle 99% of all packaging,
isolate our fuse boxes when we leave the house,
ride bicycles,
catch buses,
catch trains,
don't fly,
and it goes on and on.

F1 is making the Auto makers appear with halo's and that's a good thing, but the fact is we are all part of the problem.
If F1 fails then maybe we all should fail too, they became easy targets, but we should all come into question too.