March 6 - The National Football League and cable networks clashed in front of Congress this week over current pricing policies restricting access to the NFL network from cable service subscribers. NFL stated that cable providers are high-jacking subscriber access to the network by placing it in a higher-tier package plan, requiring customers to purchase another tier of often unrelated programming just to see out-of-area network games. Cable companies state this as a very legitimate business plan, as the market has allowed for viable competition. Citing the exclusive contract with DirectTV for NFL ticket, an inclusive package to view all out-of-area games, cable rejects the notion that Federal regulations should interfere with programming regimes that provide ample choices for consumers.
The NFL already has antitrust exemptions for being the only authorized league for professional football, as most other major sports leagues do thanks to the Sports Broadcasting Act of 1961. Though it would be best for consumers to be able to buy a-la-carte programming through cable providers, would Federal regulation intervention be best for the consumers? The NFL already has rights to its own games, which it licenses to broadcast networks such as NBC, CBS, and Fox Sports. If the NFL had easier access to its audience through its own broadcast channel, this may thwart competition among those broadcast networks. Eventually, it is foreseeable that all football games would be placed on the NFL network, requiring the audience to pay unpredictable costs for viewing its own games. This outcome likely extends beyond the NFL’s antitrust exemption and starts interfering with consumer interests.
The cable providers have a solid foundation for their concerns that requiring a breakdown in current pricing regimes would have not only on their business model, but on the competition that works to bring customers the best programming possible. Should one network be able to strong-arm and entire industry? The NFL should be best left to what it is authorized to do via antitrust exceptions: football. If they have intentions to enter newer markets, they should be prepared to meet tough competition and skepticism where competition dictates what takes place, rather than league executives.
The New York Times has more here.
Posted by thechritic 
