As it encourages the government to look into the issue of live sports on streaming services, Fox is reportedly battling alongside them for rights to the NFL’s latest package.
Mike Florio of Pro Football Talk reported Saturday that Fox is among the contenders for the new five-game media rights package the NFL is currently shopping, along with streamers YouTube and Netflix. The negotiations are taking place as the U.S. justice department has opened up an investigation into whether the NFL’s rights deals with streamers — including YouTube, Netflix and Prime Video — are covered by the league’s antitrust exemption under the Sports Broadcasting Act of 1961.
Fox has been conspicuous in supporting federal scrutiny of the antitrust exemption, questioning whether it should apply to “paywalled streamers” in a public comment to the FCC. In its comment, Fox raised concerns about streaming services “supplanting” broadcast networks, who as a result of increased competition from “some of the world’s most profitable companies” now must “pay more for the rights to games” or risk being “cut off entirely” — a condition it described as a “crisis.”
The Wall Street Journal — which like Fox is owned by the Murdoch family — also expressed support for the government looking into the antitrust exemption. WSJ was also first to report news of the federal investigation.
Of the 143 NFL telecast windows last year, including playoffs, 107 aired on broadcast television (75%). Of the 36 that did not air on broadcast, 21 aired exclusively on streaming outside of the home markets. (All NFL games, including those that air primarily on cable and streaming, are required to air on local broadcast television in the home markets).
In the event that the NFL is in any way hesitant to sell a rights package to streamers in the middle of a federal investigation into it selling rights packages to streamers, that would theoretically benefit any broadcast networks involved in the bidding. Fox was the only one mentioned in Florio’s report.
In the short period of time since the FCC began soliciting comment on the issue, the NFL has already announced plans to shift one high-profile window from streaming back to broadcast. NFL EVP/media distribution Hans Schroeder told reporters recently that the Christmas Day window that aired on Prime Video last season will air on broadcast this coming season — specifically, FOX.
Fox has also provided the only public pushback to the NFL’s efforts to negotiate what amounts to mid-cycle rights fees hike years ahead of its contractual opt-out period, with CEO Lachlan Murdoch saying last month that the company was already paying “market price” for its rights. Depending on the size of the market and who is allowed to compete therein, he may end up being proven correct.
As for the package itself, Florio reported Saturday that the league has set aside a “menu” of potential game windows, with bidders able to select five of their choice. That includes several previously reported game windows — the Week 1 International Series game from Australia, a Thanksgiving Eve game and a second Black Friday game — plus a Christmas Eve window that has not been previously mentioned.
Christmas Eve falls on a Thursday this year, which presumably corresponds with the Amazon “Thursday Night Football” package. It is not clear whether the league would schedule a second game on that day.
