FCC’s Carr says NFL could lose antitrust protections for shifting games to streaming
FCC Chair Brendan Carr expressed concern to The Post about the NFL potentially losing its antitrust exemptions if too many live games are placed behind paywalls. The agency is scrutinizing pro leagues’ deals with streaming services.
Currently, leagues are shielded from antitrust action under the Sports Broadcasting Act of 1961, which allows for the pooling of individual teams’ TV rights into extensive packages. However, Carr pointed out that this exemption pertains to “the sponsored telecasting” of games.
“There’s a live question at this point about whether putting games on Netflix or YouTube TV constitutes sponsored telecast or something else,” Carr explained in an interview with The Post.
The FCC recently sought public input on how the shift from traditional broadcasts to streaming platforms has affected consumers, who may be paying up to $1,500 annually to watch all NFL games. This move could signal the start of a more extensive investigation.
A survey by Fox News revealed that 72% of sports fans believe major sporting events should remain on free broadcast television. However, the trend is towards increasing costs, with Netflix raising subscription fees across its tiers.
Carr noted the frustration among viewers who now have to navigate multiple streaming services to access games, highlighting the changing landscape of sports broadcasting.
As more NFL games require streaming subscriptions, Carr views these fees as a form of paywall. He suggested that if too many games are placed behind paywalls, the antitrust exemption could be at risk.
While Carr indicated that there is no immediate plan for an FCC investigation into the NFL, he hinted that other entities like the Department of Justice or Congress might need to take action. He also raised questions about extending the antitrust exemption to broadcasters.
The NFL has defended its distribution model, stating that streaming services have become a primary method for consumers to watch television. The league’s media rights agreements with various streamers are projected to generate over $100 billion in sports rights fees.
Pricey media rights deals have transformed the NFL into a lucrative business, with the majority of teams owned by billionaires. The commission highlighted the impact of these deals on local broadcast stations that rely on game advertising revenue to fund news coverage.
Overall, the FCC’s scrutiny of the NFL’s streaming practices reflects the evolving landscape of sports broadcasting and the potential implications for antitrust regulations in the industry.
