Federal regulators announced Wednesday they are examining the increasing trend of live sporting events moving away from traditional free television to paid streaming platforms and subscription services.
The Federal Communications Commission is seeking public feedback on potential actions the agency “could take to ensure continued access by viewers to live sports through free over-the-air broadcast TV.” Officials are also questioning whether existing sports broadcasting contracts interfere with television stations’ obligations to serve the public interest.
The commission highlighted the dramatic financial evolution in sports broadcasting, noting that the National Football League signed a two-year deal with CBS in 1961 worth $9.8 million, while current NFL media agreements exceed $10 billion annually.
“Broadcast television stations used the popularity of live sports and the advertising revenues from the programming to support their own industry and operations, including funding the local news and reporting that are so important to our country,” the agency stated.
When contacted for response Wednesday, the NFL defended its distribution approach, stating that more than 87% of games appear on free broadcast television, with all games available on free TV in the home markets of competing teams.
“The NFL has the most accessible, fan-friendly distribution model across all of sports and entertainment,” the league responded in an official statement.
Representatives from Major League Baseball, the National Basketball Association, the National Hockey League, and major television networks did not provide immediate responses to requests for comment.
A 1961 federal law provides major sports leagues with antitrust exemptions, enabling them to combine individual team television rights and market those rights collectively.
The FCC pointed out that the NFL maintains broadcasting agreements with multiple companies including Walt Disney (ABC’s parent company), Paramount (CBS owner), Fox Corporation, NBCUniversal, NFL Network, Amazon, and Google. These contracts are expected to generate over $100 billion in rights fees throughout their duration.
According to the commission, numerous sporting events that were previously accessible through free broadcast television or standard cable packages are now exclusively available through individual streaming subscriptions, creating frustration among sports fans.
The FCC reported that NFL games appeared across 10 different platforms last year, with estimates suggesting consumers might spend more than $1,500 annually to access all games.
