The FCC voted to advance a proposal
that would eliminate sports' hated television blackout rules. If
finalized, the proposal would allow cable and satellite television
channels to show local games, even if they're "blacked out" on local
broadcast stations because of low attendance.
The 40-year-old rules were originally intended to protect sports
leagues from lost ticket revenue, then the main source of income for
professional teams. That was also before things like cable television,
regional sports networks, and DirecTV even existed.
The FCC will consider whether
those rules are outdated thanks to changes in the marketplace, and
whether it now makes sense to lift the restrictions. Key to the FCC's
decision will be the question of public interest. Originally, as the
commission explains in a notice of its consideration of
the change, the rules were intended to preserve maximum availability of
access to games to the public, by discouraging sports leagues from
refusing to sell rights to stations outside of their local markets. The
blackout rules, the proposal posits, may no longer effectively ensure
that availability. The FCC will seek comment from consumers, sports
leagues, and broadcasters on the proposed changes.
In general, sports leagues, including the NFL, are against the proposed changes, as are local broadcasters. As The Los Angeles Times
explained in November, any rule change from the FCC wouldn't invalidate
existing contracts between leagues and local broadcasters. Most of
those contracts include a blackout clause. The change, basically, would
be the ability of cable and satellite channels to show a game
in markets under a blackout, but that doesn't mean the leagues can't
enforce them through sheer will. The NFL blacked out 15 games last year thanks to undersold stadiums, and sixteen in 2011, but just two games have been blacked out this current season.
Unsurprisingly, satellite and cable channels would really, really, like to see the rules go away. The Sports Fans Coalition, a non-profit advocacy group that accepts funding from cable and satellite companies like Time Warner,
has also spoken out in favor of eliminating the rule. In order to to
that, the rule change needs to pass one more FCC vote, following the
public comment period.
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