DOJ questions broadcasters as sports streaming antitrust probe widens
The U.S. Department of Justice (DOJ) reportedly met with executives from local broadcast station groups to seek feedback on the migration of live sports from broadcast to streaming. The meeting is part of a broader DOJ investigation into whether sports leagues are upholding the terms of their antitrust exemption under the Sports Broadcasting Act of 1961. Local broadcasters argued that the exemption, which allows leagues to sell media rights centrally, should not apply to games sold to streaming services.
Key Takeaways
- Local station owners argued the Sports Broadcasting Act of 1961, which allows centralized rights sales, should not apply to games sold to streaming services.
- Executives highlighted the "economic power" the NFL has over their businesses, as sports ad revenue helps fund local news operations.
- The DOJ is expected to issue "civil investigation demands" to sports leagues, TV networks, and local broadcasters as the probe progresses.
- The investigation runs parallel to a separate FCC inquiry and scrutiny from senators including Elizabeth Warren (D-MA) and Mike Lee (R-UT).
Why It Matters
The DOJ's direct engagement with broadcasters indicates its probe into sports rights is gaining momentum and scrutinizing the core legal framework for media deals. The investigation adds significant regulatory risk to the leagues' strategy of moving high-value games to exclusive streaming windows. Broadcasters are arguing that a league's central-selling power under the 1961 Sports Broadcasting Act shouldn't cover streaming, a challenge that could re-empower local stations in rights negotiations if it succeeds. Watch for the DOJ's formal 'civil investigation demands,' which will clarify the precise scope and targets of its inquiry.
Read full article at awfulannouncing.com
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