NFL’s Streaming Transition Under Scrutiny
Recently, the NFL defended its shift to streaming during a meeting with FCC officials, although the agency raised concerns about the accessibility and cost of watching games. According to filings from Tuesday, officials are questioning if the league is making it too complicated and pricey for fans.
In a meeting requested by the NFL on Friday in Washington, D.C., Hans Schroeder, the league’s media head, suggested that letting each of the 32 teams negotiate their own media rights deals could create even more confusion and increase costs for viewers.
FCC Chairman Brendan Kerr noted that if the NFL shifts too many games to paid streaming services, it could risk losing its antitrust immunity. He welcomed the NFL executives before passing the meeting to top counsel for further discussions.
Earlier this year, the FCC sought public input on how the transition from traditional broadcasting to streaming is affecting sports fans, mentioning that fans could be spending up to $1,500 annually to access every professional football game on various streaming platforms.
Additionally, there’s an ongoing antitrust investigation by the Justice Department into the NFL. Officials are looking into whether the Sports Broadcasting Act of 1961, which allows teams to bundle media rights into large television deals, is harmful to consumers and if the related antitrust exemptions should be reconsidered.
During his presentation, Schroeder claimed that professional football remains the most fan-friendly sport, as most games are still broadcast on free-to-air television despite the increased focus on streaming.
According to him, around 87% of NFL games are available on TV through major networks like CBS, NBC, Fox, and ABC. For games exclusive to streaming, the league assures that they will still be accessible in the local markets of both competing teams.
Schroeder stated, “Facts are stubborn things,” emphasizing that even as the league explores partnerships with platforms like Netflix and Amazon, the approach is considered selective and appropriate.
Last season, fans had to pay $14.99 monthly for Amazon Prime to watch Thursday Night Football, in addition to at least $8.99 for a basic Netflix plan for a special Christmas doubleheader.
The NFL contends that streaming has become the preferred way for consumers to enjoy content, so teams must adapt to meet their audiences where they are.
However, subscribers have begun to express frustration over rising prices, with Netflix, Disney+, Hulu, and HBO Max all increasing fees recently.
Kerr previously remarked that finding games used to be simple for Americans. With the current landscape, however, viewers often need multiple subscriptions, which has made the experience more cumbersome.
Fox expressed concerns, stating that defaulting to paywall streaming for live sports could greatly disadvantage both consumers and broadcasters.
It’s noteworthy that expensive media rights deals have turned the NFL into a lucrative business, with nearly all its teams owned by billionaires, including Rob Walton of the Denver Broncos and the Hunt family of the Kansas City Chiefs.
The FCC noted that the NFL’s current media rights agreements, which involve major streamers like Disney, Paramount, Fox Corp., NBCUniversal, NFL Network, Amazon, Google, and Netflix, are expected to generate over $100 billion in revenue.
