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EXCLUSIVE—Federal Communications Commission (FCC) Chairman Brendan Carr is trying to make life less frustrating for sports fans.
The FCC on Wednesday announced it would seek public comments on the ongoing shift of live sports from broadcast channels to streaming services. The comment period runs through March 27 and replies to the comments are due April 13. The move comes as the NFL, NBA, MLB and other major sports have moved many games from broadcast and cable television to streaming services.
“From a consumer perspective, they were used to, for a long time, you sit down, you flip on the TV and you find your favorite sports game right there,” Carr told Fox News Digital Wednesday night. “It was either free, or it was already part of the TV package that you already purchased. In the last couple of years, we’ve seen a movement of a significant number of games behind paywalls. I think that’s been really frustrating for so many consumers.”
Carr, who also spoke on the subject at Semafor’s Restoring Trust in Media Summit in Washington, D.C., said sports fans are forced to remember multiple passwords, cancel services before free trials expire, and sometimes have a hard time even finding where to watch their desired game.
“I think it’s been a real pain for consumers,” Carr said.
The FCC boss said he understands the argument that streaming opens more games and more content, but he feels consumer frustration is overtaking the benefits.
“They can’t find it as easily. They feel like they have to sign up for all these different services. So, we’re looking at all of that,” Carr said.
Carr believes there has been a great partnership between broadcasters and sports leagues dating all the way back to the first live televised event in the U.S., when Columbia University and Princeton University faced off in a 1939 baseball game.
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“It’s been great for the leagues. It’s driven, expanded their audience. It’s been great for broadcasters, because it’s really interesting content. It’s a mutually beneficial relationship, Carr said.
“I think there’s lots of issues that rise if that relationship starts to break down, including Congress passed the Sports Broadcasting Act, which gave certain antitrust exemptions to sports leagues when all their content was 100% over the air,” he continued. “So, different people are looking at the Sports Broadcasting Act in the context of games moving to streaming, so we’ll see how it plays out, but it’s certainly something that has been a frustration to consumers.”
The sports leagues have cashed in on the pivot to streaming, with the NFL landing a $1 billion a year to air Thursday Night Football on Amazon as a key example. Carr wants to make sure the leagues are part of the dialogue.
Carr has also emphasized that the partnership between broadcasters and sports rights has helped fund local news and journalism, as sports helps drive revenue to local stations that many Americans rely on. He feels that the relationship could be undermined if leagues continue to ditch local broadcasters for streaming services that are behind costly paywalls.
“We certainly want to hear from the leagues,” Carr said.
“We want to hear about their thinking. I mean, look, there may be other government bodies that are interested in this as well, whether it’s Congress or other agencies,” Carr continued. “Our purview is not all encompassing this area, but there is a nexus between sports media rights, broadcasting, local news that we’re interested in exploring. But our door is open to hear from the leagues and hear their perspective as well.”
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The Sports Broadcasting Act exemption passed in 1961 applies only to broadcast television. Courts have ruled in the past that it does not apply to other mediums, including cable, satellite and streaming.
The Sports Broadcasting Act includes a rule allowing blackouts of local games, which still applies to out-of-market packages sold by the leagues.
“Consumers hate blackouts,” Carr said, noting that steps have been taken to help eliminate them, but he feels more work needs to be done.
“Ideally, we’re not [going to] be in a situation where local fans are unable to see the home team,” Carr said. “I just don’t think that’s a great result for anybody.”
The Associated Press contributed to this report.
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