FCC Seeks Input on Sports Broadcasting Transition

The Federal Communications Commission (FCC) Chairman Brendan Kerr is actively working to address concerns from sports fans. Recently, the FCC announced plans to gather public feedback regarding the ongoing shift of live sports from traditional broadcast channels to streaming platforms. This comment period will remain open until March 27th, with responses to those comments due by April 13th. The move aligns with the trends seen in major leagues like the NFL, NBA, and MLB, which have been moving many of their games to streaming services.

Kerr expressed his thoughts on the matter, stating, “From a consumer perspective, they’ve been used to just turning on the TV to catch their favorite sports games. It was either free or part of a cable package. Recently, though, we’ve noticed many games moved to paywalls, which has understandably frustrated many consumers.”

During a discussion at Semaphore’s Restoring Media Trust Summit in Washington, D.C., Kerr pointed out the difficulties fans face with multiple passwords, service cancellations before free trials conclude, and general confusion about where to find their preferred games. He noted, “It’s been quite painful for consumers.”

While Kerr acknowledges that streaming options have expanded the array of available games, he believes the frustrations experienced by consumers outweigh these benefits. “They can’t find it easily. They feel compelled to subscribe to several services,” he added.

Kerr reminisced about the longstanding partnership between broadcasters and sports leagues, dating back to the first televised event in the U.S.—a 1939 baseball game. He noted, “It’s been beneficial for both sides. The league has gained audience expansion, and broadcasters have interesting content.”

However, he cautioned that if this partnership deteriorates, it could lead to complications, including potential repercussions for the Sports Broadcast Act, which provides certain antitrust exemptions for leagues broadcasting all their content. Kerr confirmed that many stakeholders are closely observing how sports broadcasting law will evolve amid the growing shift toward streaming.

As leagues transition to streaming, they’ve seen substantial profits, illustrated by the NFL’s expenditure of $1 billion annually to broadcast Thursday Night Football on Amazon. Kerr emphasized the importance of including leagues in these conversations to ensure balanced interests.

Furthermore, he noted that the relationship between broadcasters and sports rights significantly supports local news and journalism, as sports revenue helps bolster local stations that many depend on for news. He expressed concern that if leagues continue to abandon local broadcasters for costly streaming services, it could jeopardize this support.

Kerr expressed a desire to hear from the leagues, stating, “We want to know their perspective.” He acknowledged that while the FCC’s jurisdiction may be limited, the intersections of sports media rights, broadcasting, and local news warrant exploration.

The Sports Broadcasting Act, enacted in 1961, only pertains to television broadcasts; previous court rulings confirmed it doesn’t extend to cable, satellite, or streaming services. The Act includes rules that allow for local game blackouts and still applies to out-of-market packages offered by leagues.

Kerr remarked on consumer frustrations with power outages and reiterated the need for further action to reduce these incidents. “Ideally, we wouldn’t face situations where local fans are unable to watch their home teams,” he concluded.