MLB Streaming Rights Face Federal Scrutiny
The Department of Justice (DOJ) is making its way through a thorough antitrust examination of professional sports, with Major League Baseball (MLB) next on the list. Bloomberg News reveals that the DOJ has recently shifted its focus from the NFL to MLB, looking into how these leagues license their broadcast rights under the Sports Broadcasting Act of 1961.
FCC chair Brendan Carr affirmed this expansion, acknowledging that there are other sports leagues potentially stretching the limits of the Sports Broadcasting Act beyond what the NFL has been doing. The inquiry into sports broadcasting fragmentation began in February, questioning whether the antitrust protections in the Sports Broadcasting Act should extend to games shown exclusively on paid platforms.
Under the Sports Broadcasting Act of 1961, professional sports leagues benefit from an antitrust exemption, permitting them to package and sell their teams’ broadcast rights as a national offering. However, the rise of streaming platforms has sparked debate over whether this exemption applies to games aired solely on subscription-based services rather than traditional broadcast television.
MLB’s media landscape has become increasingly segmented, spanning various platforms like Netflix, NBC/Peacock, ESPN, Fox, TBS, Apple TV+, and MLB Network. Commissioner Manfred’s strategic decisions have led to this fragmentation, positioning the league for maximum leverage in the future but also triggering concerns about potential antitrust violations.
Carr expressed surprise at the significant interest from baseball fans, signaling the broad impact of this antitrust scrutiny. This examination extends beyond football and involves multiple moving parts, indicating that it was never just about a single sport or negotiation.
The investigation into MLB’s streaming rights is part of a broader effort to ensure fair competition within professional sports broadcasting, highlighting the changing landscape of media distribution and the need to adapt established regulations to modern viewing habits.
