The value of motorsports in switching pay TV operator

One of Europe’s largest pay TV operators was looking to understand the value of motorsports content rights for end-users in switching pay TV operators. To take the project one step further – they also wanted to know the value of the motorsports asset, and whether they should acquire it outright.

Solon surveyed consumers in several markets to understand their likelihood to switch pay TV operators. Solon also investigated the relative importance of different sports, and the likelihood to switch whether the content was exclusive and whether it was charged for. Finally, Solon profiled the pay TV landscape of each addressable country and assessed how the rights could be leveraged in each.

Solon leveraged these conclusions in evaluating the asset. But Solon went even further – at the end of this project, we had a deep understanding of fees, media value, sponsorships, ticket sales, and economic impact. This detailed understanding allowed us to assess the overall sustainability of race fees on a track-by-track basis and media rights growth.

On the back of our analysis, the pay TV operator made an offer to acquire a majority share of the entire motorsports asset.