3. It doesn’t take new entrants seriously. Later this year we will see the launch of Formula E (including a team from Virgin) with all electric cars racing around city circuits. It is criticised by the F1 fraternity as it is not seen as ‘proper’ racing – it doesn’t use purpose built circuits, the cars hardly make any noise and the race itself will only last an hour. The drivers will have to change cars during the race as the battery technology will not allow the cars to run for the entire hour.

4. The business model is out of date. The F1 business model is based on the assumption that here is a global spectacle which is watched across the world and therefore has TV companies queuing up to buy the rights to show the races. The future suggests that media will become far more fragmented so that the big TV deals may be a thing of the past, in addition the ‘big’ sponsor deal is also a rare species, just look at the way the cars are branded, the days of the big mega brand sponsor are past and marketing spend is become more tailored, more individual, which moves it away from the F1 model.

So will Formula E be the disruptor that replaces Formula 1? The F1 fraternity certainly does not see Formula E as a serious threat, but then like all disruptors that could be the secret of their success.

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