On Wednesday, the FCC revealed it would launch an inquiry into sports television rights partners and the increased usage of streaming platforms to broadcast major events.
In a Public Notice, the bureau pointed to a longstanding tradition in which viewers could turn on a television and easily locate major sporting events without paying additional fees beyond a basic antenna or cable package, contrasting that experience with today’s environment, where fans often juggle multiple subscriptions to follow a single league or even one team across a full season.
FCC Chair Brendan Carr appeared on The Clay Travis & Buck Sexton Show on Thursday afternoon, and explained why the commission is looking into the issue.
“In recent years, it’s gotten a lot more complicated,” said Carr. “People are having to sign up for bespoke streaming services. They can’t find the game they want to watch. They’re signing up for free trials of one platform just to get a playoff game, and then they have to remember to cancel it down the road. Many of them are paying more out of pocket. That’s a problem. It’s a real frustration.
“There’s a role for the FCC here, too, because when sports are broadcast over the air on television, that helps drive advertisers to local broadcasters, and that’s what ends up funding local news and local reporting,” continued Carr. “So we’re exploring this relationship between sports and broadcast … As more and more games start to go behind paywalls, it begins to tug at some of the underpinnings of that Sports Broadcasting Act. I think people are right to start asking whether we have the right regulatory framework in place right now.”
The FCC chairman continued by questioning if local television would be viable without NFL broadcasts, which will see its rights deals with over-the-air broadcasters CBS, FOX, and NBC be up for renewal in 2029.
“If too many of those games start to go behind a paywall, it’s a problem on many fronts. I think it’s a problem for local news and for broadcasters. I think it’s a problem for consumers who will continue to be frustrated by an inability to find the games,” Carr said. “And again, it starts to undermine some of the reasons why we have the Sports Broadcasting Act. Now look, there are some good things that come from this as well. There are more games available now, so there is some upside. But there’s also real consumer frustration. I hope the NFL ultimately finds the right balance where we still get these free over-the-air games that help grow the sport.”
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