FCC opens inquiry into movement of live sports from broadcast TV to streaming

[nomadcowatbk 188]

https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/fcc-opens-inquiry-into-movement-of-live-sports-from-broadcast-tv-to-streaming

[TVLurker 389]

They don't have any authority over streaming unless congress gives them that authority. The FCC is a joke now.

[l_miro 245]

8 hours ago, TVLurker said:

They don't have any authority over streaming unless congress gives them that authority. The FCC is a joke now.

 

the FCC isn't looking at regulating streaming, you are not reading. It's literally in https://docs.fcc.gov/public/attachments/DA-26-188A1.pdf

It's asking if the antitrust exemptions the leagues get is a threat to local public interest and how it's affecting broadcast TV financially.

 

The FCC points to the Sports Broadcasting Act of 1961, when the government allowed the NFL and other leages a defacto monopoly to negotiate rights collectively without triggering the Sherman Antitrust Act. That same year the NFL made an attempt to negotiate broadcast rights with CBS for all teams, it got sued and the court invoked the Sherman Antitrust Act saying the league is restricting competition. The NFL commissioner at the time went on a lobbying blitz arguing large teams like the NY Giants selling their rights individually would make them rich while someone like the Green Bay Packers would barely get anything potentially causing smaller teams to cease existing. Congress passed the act in mere weeks.

 

SBA permits the leagues (actually the carveout is written as football, baseball, basketball, and hockey) to sell rights as a package without being considered an antitrust violation, which it would normally be that. As a condition of that, the money from the rights is split evenly among teams regardless of size, popularity, etc. It prohibits airing of games on Fridays and Saturdays to protect college and high school attendance/viewership. College sports (NCAA) and NASCAR, are not afforded this privelege. Soccer funny enough being football to us Europeans is also not exempt so the MLS had to own all the teams. NCAA are lobbying for the Safe Act for that reason so they too can negotiate rights as a pool.

 

 

Quote

“To what extent do current sports media rights contracts conflict with or impede TV broadcasters from meeting their public interest obligations? How should these arrangements be considered in the context of broadcasters’ public interest obligations and the FCC’s duty to ensure licensees meet their statutory requirements?” 

 

 The FCC is asking if the NFL/NBA/NHL/MLB are abusing their exclusive privlege to paywall games and make more money. Whether the antitrust exemption should apply today when games are moving to exlcusive distribution while at the same time eating up so much of the revenue local stations need for news and other content. Particularly in light of two things happening: courts have already ruled that the SBA does not apply to pay TV. And the NFL currently facing a class action lawsuit by almost 50,000 businesses and 2,400,000 subscribers over the 'Sunday Ticket' bundle arguing it's overcharging people by bundling, it costs ~$400 per season. This trial exposed internal emails showing the NFL denied ESPN's offer to sell Sunday Ticket for $70 to protect TV ratings of CBS and FOX. The jury found the NFL guitly, ordered $4.7B fine which trebled to $14.1B because it's an antitrust case, but the judge struck the amount down on grounds the jury was irrationally calculating damages based on flawed expertise. It's now pending at the 9th circuit wtih argument set March 9, the judge agreed plaintiffs might still win an injuction, so the monetary damages might stay and teams will have to negotiate on their own.

 

Retrans (which has been rising because of sports) is another thing the FCC are looking at.

 

You can leave a public comment on MB Docket No. 26-45. Just make a cogent, reasoned argument or the leagues could end up using it as evidence

Edited March 3 by l_miro