Showing posts with label Sports Programming. Show all posts
Showing posts with label Sports Programming. Show all posts

Wednesday, March 11, 2026

Consumer Choice in Sports Proves that Video Competition Abounds

On February 25, the FCC's Media Bureau released a public notice seeking comment on "current and emerging trends in the distribution of live sports programming." With a particular focus on football, the item longs for a bygone era – and, what's more, views it through rose-colored glasses. Indeed, it seems to presuppose a time when football fans had free access to every game played. In other words, gridiron glory days that never existed.

Setting to the side, at least for the moment, the significant legal authority questions posed by the notice, I submit that, rather than a basis for concern, the current state of live sports carriage demonstrates that video programming distribution is highly competitive; that consumers derive substantial benefits, including expanded viewing options, as a result; and that any impact on legacy business models is an inevitable and necessary consequence of the welcome transition to a broader marketplace defined by abundant choice.

As the notice recalls, "[f]or decades, Americans have enjoyed turning on their television sets and quickly finding the games they wanted to watch for free on an over-the-air broadcast." Let us not forget, however, that a primary driver of that simplicity was a lack of choice. Consumers typically had access, via broadcast network affiliated local television stations, to a half dozen (give or take) NFL games on Sunday as well as Monday Night Football.

Until the launch of the NFL Sunday Ticket subscription service in 1994, that essentially was the whole picture.

Today, however, consumers can choose from a healthy roster of viewing options. That includes, of course, local broadcasters, which continue to offer a comparable number of games and can be received in a wide range of ways: for free using an over-the-air antenna; by subscribing to a traditional, facilities-based multichannel video programming distribution (MVPD) platform (that is, cable, direct broadcast satellite , and telco TV); and, more recently, with a subscription to a virtual MVPD such as YouTube TV, which also is the current home of the NFL Sunday Ticket.

In addition, the existence of numerous, competing video distribution platforms – including cable channels like ESPN (which has carried Monday Night Football games for the past two decades) and streaming services such as Amazon Prime (Thursday Night Football), Peacock (Sunday Night Football), and Netflix (Christmas Day) – creates additional opportunities for consumers to view games. Thursday Night Football games on Amazon Prime, as one example, represent an additive option. Similarly, NFL Sunday Ticket and NFL Red Zone provide diehard pigskin fans new couch-based opportunities that did not exist in the halcyon days of old.

This brings me to an important point. Commenters frequently make apples-to-oranges comparisons between the single-digit game schedules offered when local broadcasters were the only game in town and what it might cost today to view every game – nearly 300 in total, including the playoffs.

The notice itself, citing a CBS News article, states that "[i]n 2025, NFL games aired on 10 different services, which, according to some estimates, could cost a consumer over $1,500 to watch all games." That article in turn references a USA Today story for a total of $651 (although the latter in fact calculates a price somewhere between $811 and $833, figures seemingly inflated by double charges for ESPN, which already is included in the YouTube TV base plan); the $1,500 figure comes from an unsourced X post that appears to overstate the price of NFL Sunday Ticket + YouTube TV and similarly double charges for ESPN. Aside from the unrealistic assumption that more than a very few people – or perhaps anyone at all – would want to watch every single game or be able to do so, it's clear that the price figures cited are likely inflated. 

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As I have documented in a multiyear series of Perspectives from FSF Scholars and posts to the Free State Foundation blog – including one just a few weeks ago – consumers are migrating steadily away from the "Big Bundle" traditionally offered by traditional MVPDs to a self-selected collection of streaming options. In that highly competitive environment, numerous distributors are choosing to offer live sporting events, in addition to the original and licensed content that they carry, to win and retain customers. That competition-fueled decisionmaking benefits consumers through lower costs and greater choice. It therefore should be celebrated, even as it unavoidably disrupts existing revenue models.

Monday, January 09, 2023

Google's YouTube Scores Rights to NFL Sunday Ticket

Late last year, it was announced that, beginning with the 2023 National Football League season, Google's YouTube will be the exclusive home of the NFL Sunday Ticket game package. This represents a watershed moment in the rapidly transforming video programming distribution marketplace.

For the past 28 years, the NFL Sunday Ticket has been available only to subscribers of the DIRECTV Direct Broadcast Satellite (DBS) service, a traditional, facilities-based multichannel video programming distributor (MVPD). And for much of that time, it served as a potent customer-acquisition tool for DIRECTV, a key product differentiator vis-à-vis other traditional MVPDs (cable operators, DISH Network, telco TV providers) well worth the $1.5 billion in licensing fees DIRECTV reportedly paid annually.

In "Pixel by Pixel, Video Streaming's Ascension Comes Into Focus," a September 2021 Perspectives from FSF Scholars, I noted that two other Big Tech titans, Amazon and Apple, had emerged as potential bidders for the NFL Sunday Ticket and recounted the significance of that package in the pre-streaming era:

When most consumers subscribed to one – and only one – package of primarily live, linear cable and broadcast channels from a facilities-based MVPD, DIRECTV's longstanding exclusive agreement to distribute the NFL Sunday Ticket was seen as the quintessential example of "must-have" content, a crown jewel able to win customers from rival distributors. So much so that in 2014, AT&T's offer to acquire DIRECTV for $48.5 billion hinged upon the DBS provider's ability to renew its deal with the NFL.

By early 2020, however, the landscape had changed dramatically, thanks in large part to the immense popularity of streaming video. DIRECTV had lost more than 4 million subscribers over the previous two years, the NFL Sunday Ticket had become a "money loser," and AT&T was looking to exit the video distribution business altogether – a step it took in August 2021.

The agreement between the NFL and Google provides further evidence of the steady consumer migration away from traditional MVPDs and toward video streaming in all of its forms: beginning next fall, the NFL Sunday Ticket will be offered, not by a DBS, cable, or telco TV provider, but rather by a virtual MVPD (vMVPD) – YouTube TV – and an Online Video Distributor (OVD) – YouTube Primetime Channels.