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Antitrust · FCC · NFL · Streaming
FCC Chair Brendan Carr stated the NFL risks losing its 1961 antitrust exemption if it continues to place too many live games behind streaming paywalls, as the agency scrutinizes professional leagues' deals with streaming services amid rising consumer costs and frustration.
The Sports Broadcasting Act of 1961 protects leagues from antitrust action for pooling TV rights, but Carr questions if "sponsored telecasting" applies to streaming platforms like Netflix or YouTube TV. The FCC asked for public comment last month on how the shift to streamers impacts consumers, who pay up to $1,500 annually to watch all pro football games.
A Fox News survey found 72% of fans believe major sporting events should remain on free broadcast television. Netflix recently hiked all subscription tiers, with its premium plan now costing $26.99 monthly and its ad-supported option $8.99 monthly.
Carr views streaming fees as paywalls, indicating a "tipping point" where the exemption could collapse. While no concrete investigation is planned, Carr suggested action from the Department of Justice, Federal Trade Commission, or Congress is possible.
He also questioned if the exemption should extend to allow broadcasters like CBS and FOX to collectively bargain for media rights. The NFL argues its distribution model is "most accessible," while the FCC notes media rights fees have "exponentially increased" from $9.8 million in 1961 to over $10 billion per year currently.
