A DOJ probe puts NFL media distribution rights under pressure

The news: The NFL is under investigation by the Department of Justice amid concerns that its many media rights packages could be restricting competition.

  • The DOJ cited concerns over the affordability of watching NFL games because viewing is stretched across cable, broadcast, and streaming networks.
  • The NFL claimed its distribution options are the “most fan and broadcaster-friendly in the entire sports and entertainment industry,” per CNBC.
  • The league also noted that over 87% of games are on free broadcast networks.

Fox Corp. and Sinclair recently brought the issue to the Federal Communications Commission, arguing that placing sports behind exclusive streaming paywalls harms legacy TV and drives up costs for consumers.

Why it matters: The probe comes as the NFL is seeking renegotiated media rights deals with broadcasters and considering expanding its available game package with Netflix. The league is also part of an 11-year media rights agreement ending in 2034 with CBS, NBC, Fox, Prime Video, and ESPN, worth $111 billion; it maintains one-off, game-specific deals with Peacock; and it’s eyeing a renewal with Paramount Skydance for Sunday games. Other major sports leagues are similarly stretched across platforms.

Scattered rights present a notable issue for marketers, making it increasingly difficult to determine where to invest in sports as games become more fragmented. This causes several challenges:

  • Viewers are spread across platforms, requiring investment in multiple channels to reach the same audiences previously accessible through a single broadcast buy. This increases the complexity and cost of campaigns as brands are forced to track and optimize across different services.

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