According to Autosport, Netflix is looking to expand into live sports by trying to secure the rights to broadcast Formula 1 in the United States.

Right now, ESPN holds these rights, but its exclusive period to renew the deal has ended. This means other companies, including Netflix, can now enter the bidding process.

F1 has grown in popularity in the U.S. in recent years, thanks to races in Miami, Austin, and Las Vegas. ESPN currently pays under $90 million per year for the rights, but with more competition, the price could rise significantly.

If Netflix wins the bid, it would be a major step for the streaming giant, as it has never broadcast an entire sports season before. However, it does have some experience with live sports, having streamed NFL games on Christmas Day and the record-breaking Mike Tyson vs. Jake Paul boxing match.

On top of that, Netflix already has a strong connection to F1 through its popular documentary series Drive to Survive, which has helped introduce the sport to a wider audience, especially in the U.S. It has also produced a new miniseries about F1 legend Ayrton Senna, showing its commitment to motorsports

One challenge for Netflix is how to make money from this deal. Unlike ESPN, which earns money through advertisements and cable subscriptions, Netflix mainly relies on people paying for a monthly subscription. To afford the high cost of F1 rights, Netflix would need to attract many new subscribers or figure out a way to include ads in its sports coverage.

Another difference is that ESPN currently uses footage from Sky Sports (a British TV network) for its F1 broadcasts, while Netflix would likely create its own U.S.-focused coverage.

For F1, a deal with Netflix could help bring even more American fans to the sport. The U.S. already hosts three races—Miami, Austin, and Las Vegas—which shows how much the sport is growing there.

With Netflix’s strong storytelling skills, it could make F1 coverage even more exciting for new viewers. However, F1’s owners, Liberty Media, might be cautious about switching from ESPN, a well-known sports channel, to a streaming platform that is still new to live sports.

Ultimately, the deal could change the way people watch sports in the future. More and more streaming services are trying to get into live sports, which could mean fewer sports being shown on traditional TV channels. It remains to be seen if Netflix can successfully handle live sports coverage, but if it does, this could be a big moment in the future of sports broadcasting.