[Federal Register Volume 59, Number 133 (Wednesday, July 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16878]


[[Page Unknown]]

[Federal Register: July 13, 1994]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chapter I

[PP Docket No. 93-21; FCC 94-149]

 

Sports Programming Migration

AGENCY: Federal Communications Commission.

ACTION: Final report.

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SUMMARY: The Final Report of the FCC's sports migration inquiry finds 
that there has not been significant migration of sports programming 
from broadcast to subscription media, but expresses concern about a 
decline in broadcast coverage of college football games in some 
markets. In the Final Report, the Commission states its intention to 
monitor sports programming availability and to act promptly, consistent 
with its statutory authority, should any significant threat to that 
availability develop.

FOR FURTHER INFORMATION CONTACT:
Jonathan D. Levy, Office of Plans and Policy, (202) 418-2048.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Final Report in PP 
Docket No. 93-21, adopted June 9, 1994 and released June 30, 1994. The 
complete text of this Final Report is available for inspection and 
copying during normal business hours in the FCC Reference Center (room 
239), 1919 M Street NW., Washington, DC 20554, and also may be 
purchased from the Commission's copy contractor, International 
Transcription Services, Inc., at 1919 M Street NW., room 246, 
Washington, DC 20554 (telephone: (202) 857-3800).
    In section 26 of the 1992 Cable Act, Congress instructed the 
Commission to conduct an examination of ``the carriage of local, 
regional, and national sports programming by broadcast stations, cable 
programming networks, and pay-per-view services,'' and ``the extent to 
which preclusive contracts between college athletic conferences and 
video programming vendors have artificially and unfairly restricted the 
supply of the sporting events of local colleges for broadcast on local 
television stations'' or are prohibited by existing statutes. Congress 
directed the FCC to submit to it an Interim Report by July 1, 1993 (see 
58 FR 38088, July 15, 1993) and a Final Report by July 1, 1994, 
including legislative or regulatory recommendations as appropriate.
    The Commission defined sports programming migration as ``the 
movement of sports programming from broadcast television to a 
subscription medium (i.e., one for which viewers pay a fee).'' The 
inquiry focused on professional baseball, football, basketball and 
hockey and college football and basketball. The Commission looked at 
the time period from 1980 to the present and examined local and 
national telecasts.
    The Commission found no evidence of migration of National Football 
League or college basketball games. At the national level, it saw no 
evidence of migration of professional basketball or hockey games. In 
fact, it found instances of ``reverse migration'' in hockey at the 
national level. At the local level, there have been some declines in 
broadcast coverage of professional basketball and hockey, but no 
overall pattern of migration.
    The inquiry determined that national broadcast coverage of regular 
season Major League Baseball games has declined, but found evidence 
that the drop is due to reduced demand rather than migration. Local 
broadcast coverage of baseball has increased for most teams, but 
declined significantly in a few cases. The Commission concluded that 
there was no pattern of migration of local baseball games. ESPN 
provides some national cable coverage of regular season baseball games. 
While ESPN has exclusivity vis-a-vis local broadcasters on Wednesday 
nights, this appears to have had little effect on total games 
broadcast. Rather, it has been associated with an increase in games 
televised on days other than Wednesday.
    The Commission found evidence of a decline in college football 
broadcasts in some markets between 1984 and 1993, but could not isolate 
the cause of the decline. The Commission expressed concern about the 
decline, but noted that new college football contracts now being 
negotiated may lead to an increase in network coverage.
    ``Preclusive contracts'' are defined in the 1992 Cable Act as 
contracts between college athletic conferences and video programming 
vendors that prohibit local television stations from broadcasting live 
games of local college teams that are not carried live by a local cable 
system or prohibit tape delay broadcasts of local college games that 
are not carried live or on tape delay by a local cable system.
    The Commission's inquiry found no evidence of such preclusive 
contracts for college basketball, but questions were raised in the case 
of college football. In the Interim Report the Commission noted that it 
would use the ``rule of reason'' framework to analyze contracts of this 
type, as suggested to it by the Department of Justice. The Commission's 
analysis of typical contract terms suggested that, without the sort of 
factual evidence presented at a full-scale trial, it could not 
determine whether the contracts violated the antitrust laws. There was 
no suggestion that the contracts might violate other statutes.
    The Commission found that there is a substantial amount of sports 
programming available on broadcast television, including the 
``marquee'' events of all the major sports. Because the Commission's 
interest in the availability to the public of a diverse menu of 
programming encompasses both sports and non-sports programming, the 
Final Report concluded that additional government intervention to 
promote free access to sports programming, whether via regulation of 
preclusive contracts or by some other means, is not warranted at this 
time.
    Although it found that no legislative or regulatory recommendations 
in the area of sports programming migration are necessary, the 
Commission noted its continuing concern regarding broad and economical 
public access to sports programming and said it would take action if 
any significant threat to such access developed in the future. 
Moreover, the Commission urged interested parties to file legitimate 
complaints in the event that current or future college football 
contracts artificially and unfairly constrain local stations' access to 
local teams' games and committed itself to pursue such complaints 
vigorously and promptly. In addition, the Commission said it would 
transmit the Final Report to the Department of Justice and the Federal 
Trade Commission.

Federal Communications Commission.
LaVera F. Marshall,
Acting Secretary.
[FR Doc. 94-16878 Filed 7-12-94; 8:45 am]
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