That's exactly right. The problem is that somehow Foxtel has managed to convince F1 that the PayTV model here is like the PayTV model in Europe. It's completely different. Here there are only around 2 million PayTV subscribers, and most of them who get it for sport get it for AFL or NRL. Only a very small proportion of those actually get it for motor sport.
You are probably looking at something like 5 to 10 times as many who follow motor sport on FTA TV. This means that advertisers are not getting anywhere near the exposure on PayTV than they would on FTA TV.
The penny will drop, as it has with other sports that went to PayTV, and after one season went back to FTA TV. The only problem is that they have destroyed their credibility in doing what they have done.
But it's not just the broadcasts.
It was Ten that got V8Supercars to where they are (or were before 7 got the rights and started the screw up). One of the best things in those days was RPM. It was a sharp show that covered things properly. Now every show must have a comedian. They cut things to the bone and absolutely screw it up.
Thank goodness for streaming services.