S.Hrg.119-142

1[Senate Hearing 119-142]2[From the U.S. Government Publishing Office]34                                                        S. Hrg. 119-14256                 FIELD OF STREAMS: THE NEW CHANNEL GUIDE7                             FOR SPORTS FANS89=======================================================================1011                                HEARING1213                               before the1415                         COMMITTEE ON COMMERCE,16                      SCIENCE, AND TRANSPORTATION17                          UNITED STATES SENATE1819                    ONE HUNDRED NINETEENTH CONGRESS2021                             FIRST SESSION22                               __________2324                              MAY 6, 202525                               __________2627    Printed for the use of the Committee on Commerce, Science, and28                             Transportation2930                [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]3132                Available online: http://www.govinfo.gov3334                                ______3536                   U.S. GOVERNMENT PUBLISHING OFFICE373861-336 PDF                 WASHINGTON : 20253940       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION4142                    ONE HUNDRED NINETEENTH CONGRESS4344                             FIRST SESSION4546                       TED CRUZ, Texas, Chairman47JOHN THUNE, South Dakota             MARIA CANTWELL, Washington,48ROGER WICKER, Mississippi              Ranking49DEB FISCHER, Nebraska                AMY KLOBUCHAR, Minnesota50JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii51DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts52MARSHA BLACKBURN, Tennessee          GARY PETERS, Michigan53TODD YOUNG, Indiana                  TAMMY BALDWIN, Wisconsin54TED BUDD, North Carolina             TAMMY DUCKWORTH, Illinois55ERIC SCHMITT, Missouri               JACKY ROSEN, Nevada56JOHN CURTIS, Utah                    BEN RAY LUJAN, New Mexico57BERNIE MORENO, Ohio                  JOHN HICKENLOOPER, Colorado58TIM SHEEHY, Montana                  JOHN FETTERMAN, Pennsylvania59SHELLEY MOORE CAPITO, West Virginia  ANDY KIM, New Jersey60CYNTHIA LUMMIS, Wyoming              LISA BLUNT ROCHESTER, Delaware61                 Brad Grantz, Republican Staff Director62           Nicole Christus, Republican Deputy Staff Director63                     Liam McKenna, General Counsel64                   Lila Harper Helms, Staff Director65                 Melissa Porter, Deputy Staff Director66                     Jonathan Hale, General Counsel6768                            C O N T E N T S6970                              ----------71                                                                   Page72Hearing held on May 6, 2025......................................     173Statement of Senator Cruz........................................     174Statement of Senator Cantwell....................................     375Statement of Senator Klobuchar...................................    2576Statement of Senator Blackburn...................................    2877Statement of Senator Lujan.......................................    2978Statement of Senator Schmitt.....................................    3279Statement of Senator Moreno......................................    3680Statement of Senator Rosen.......................................    3981Statement of Senator Markey......................................    418283                               Witnesses8485Kenny Gersh, Executive Vice President, Media and Business86  Development, Major League Baseball.............................     587    Prepared statement...........................................     788William Koenig, President, Global Content and Media Distribution,89  National Basketball Association................................     890    Prepared statement...........................................    1091David M. Proper, Senior Executive Vice President, Media and92  International Strategy, National Hockey League.................    1393    Prepared statement...........................................    1494John Bergmayer, Legal Director, Public Knowledge.................    1595    Prepared statement...........................................    179697                                Appendix9899Response to written questions submitted to Kenny Gersh by:100    Hon. Marsha Blackburn........................................    45101    Hon. Eric Schmitt............................................    46102    Hon. Maria Cantwell..........................................    46103Response to written questions submitted to William Koenig by:104    Hon. Maria Cantwell..........................................    48105    Hon. Amy Klobuchar...........................................    50106Response to written questions submitted to John Bergmayer by:107    Hon. Maria Cantwell..........................................    51108    Hon. Amy Klobuchar...........................................    54109110                    FIELD OF STREAMS: THE NEW CHANNEL111                         GUIDE FOR SPORTS FANS112113                              ----------114115                          TUESDAY, MAY 6, 2025116117                                       U.S. Senate,118        Committee on Commerce, Science, and Transportation,119                                                    Washington, DC.120    The Committee met, pursuant to notice, at 10:08 a.m., in121room SR-253, Russell Senate Office Building, Hon. Ted Cruz,122Chairman of the Committee, presiding.123    Present: Senators Cruz [presiding], Fischer, Blackburn,124Young, Schmitt, Moreno, Cantwell, Klobuchar, Markey, Rosen, and125Lujan.126127              OPENING STATEMENT OF HON. TED CRUZ,128                    U.S. SENATOR FROM TEXAS129130    The Chairman. Good morning. The Senate Committee on131Commerce, Science, and Transportation will come to order.132    In Texas where everything is bigger we boast some of the133most watched teams in the Nation. Today's hearing about sports134broadcasting is not just a Texas issue. It is a national one.135    In an era of deep partisan division, sports might be the136most powerful cultural unifier that we have. Whether on the137couch or in the stands Americans come together to cheer, to138hope, to believe.139    But those millions of fans are asking a simple question.140Why does it seem to be getting harder and more expensive to141just watch the game?142    For years, fans face some frustrations--regional sports143blackouts, a lack of cable subscription options, and higher144costs for sports packages.145    Consider, for example, that all NFL games used to be146broadcast on over-the-air channels until 1987 when the first147NFL game aired on ESPN. Some pundits and analysts at the time148predicted that fans would no longer follow the NFL if they had149to purchase a cable subscription.150    How wrong they were. Instead, cable proved to be an151evolution in the market and the NFL's popularity exploded.152Today's shift to Internet streaming could prove to be a similar153evolution.154    However, in some ways, rather than simply having more155options, sports viewing has become more splintered, requiring156multiple apps and subscriptions just to watch a single157franchise's entire season.158    The app or TV channel that a fan uses one week to watch a159game does not necessarily work the next week. It is frustrating160and it is annoying for the dedicated sports fans.161    Such market disruption is not only expected, it can be a162sign of innovation. The key is recognizing that and figuring163out how to adjust as we go. Importantly, we should be cautious164about saddling streaming services with outdated cable era165regulations, something that might do more harm than good.166    The shift to streaming is not just frustrating, it can be167expensive. Between league-specific packages and games behind168different streaming pay walls it can cost hundreds of dollars a169year for a hardcore fan wanting to watch all of a league's170games.171    If fans want to spend their hard-earned money on sports172streaming I do not blame them. I have shelled out a hell of a173lot of money to see the Houston Rockets and the Astros and the174Texans, and I intend to continue doing so.175    But given that sports can get special treatment under the176law, whether it be antitrust protection, nonprofit status, or177taxpayer financing of stadiums, what do fans deserve in return?178    This is a particularly important question for this179committee, which has jurisdiction over telecommunications and180broadcasting.181    In 1961, Congress enacted the Sports Broadcasting Act to182grant professional leagues antitrust immunity as it relates to183negotiating national broadcast deals on behalf of their teams.184    This structure allows leagues to negotiate from centralized185offices in a synchronized manner without violating antitrust186laws.187    The SBA was intended to ensure that the needs of all sports188fans were being met. I think it is important to regularly189revisit and consider whether our laws, like the Sports190Broadcasting Act, are actually fulfilling their intended goals,191and if the leagues can show how the SBA continues to benefit192fans today it may be worth exploring whether to give a similar193exemption to college sports whose broadcasting rights have no194antitrust protection.195    One growing concern is that the NFL has used its special196exception in the SBA to the frustration of college and high197school football schedulers.198    For example, the SBA explicitly excludes antitrust199protection for the NFL if broadcasting a game on Friday night200or a Saturday between mid September and mid December. That is201to protect the interest of high school and college football202and, ultimately, their fans, who are no doubt also followers of203the NFL.204    The NFL has tiptoed up to this rule, now putting a game on205streaming on Black Friday afternoon, which used to be reserved206for prominent football rivalries including in some years when I207was a kid Texas versus Texas A&M.208    There are millions of sports fans who like being able to209follow high school and college and professional football210without having to choose amongst them. It is partly why211Congress wrote the SBA in the manner it did.212    Professional sports holds a unique space in our culture.213They wear our colors, carry our hopes, and represent our cities214and towns.215    Sports teams may be run like businesses but to fans they216are sacred institutions. They are public trust and it is why217taxpayers have been willing to shell out their money to build218stadiums and arenas for pro football and baseball and219basketball and hockey.220    In exchange, fans are right to ask if these teams have a221civic responsibility to their communities that includes making222games accessible.223    I look forward to hearing from each of the sports leagues224today on how the fan experience is changing, how fans are225benefiting from new broadcasting landscapes, and just as226importantly what responsibilities teams have to the public when227taxpayer funding or special legal rights are granted to them.228    Streaming may well be the future but it should not sideline229the fans.230    I now turn to the Ranking Member for her opening statement.231232               STATEMENT OF HON. MARIA CANTWELL,233                  U.S. SENATOR FROM WASHINGTON234235    Senator Cantwell. Thank you, Mr. Chairman, and welcome to236the witnesses this morning here for this hearing.237    Before we start on this subject, I want to express my238strong opposition to the efforts by the Trump administration239last week to undermine critical resources for local240broadcasting that is NPR and PBS and to fire three241congressionally appointed board members of the nonpartisan,242nonprofit Corporation for Public Broadcasting.243    Every community deserves to have trusted access to local244journalism, particularly when it comes to some of our rural245areas where programming on these individual channels are very246valuable, a quality program for children, certainly emergency247alert information.248    So we want every community including our rural and tribal249areas to have access. The President's actions last week will250hit these communities the hardest and deny residents the access251to information that they rely on to keep them safe in252emergencies.253    With this hearing today, Mr. Chairman, obviously, we need254to find the sweet spot between consumer choice and consumer255costs. I recognize the challenging issue that we are going to256discuss this morning.257    But I think Mr. Bergman--Mr. Bergmayer, I got it right--in258his testimony when he said consumers see that they finally259broke the cable bundle model. He was referring to the fact that260now with streaming and different distribution that you have261more choice, only to watch it reforming again right between262their eyes.263    That is the subject of this hearing today, and this264committee has had a long, long history, back to our former265Chairman Senator John McCain, where he advocated in many of266those big cable broadcast wars for a la carte choice consumers.267    We now see the same issues coming before us again but in a268different construct. According to Nielsen, the 2024 streaming269numbers were--have accounted for 39 percent of total TV usage270in the United States of America, surpassing cable and broadcast271television, and this surge in streaming viewers is coupled with272a 20 percent drop in cable and satellite subscribers in the273past 15 years.274    So as you might imagine, this shift has created some275disruption including in the broadcast sports arena. I am276grateful, again, for our Public Knowledge witness to highlight277how some of these changes really have affected consumers and278particularly the fan experience.279    When I am back home I get to turn on the TV and watch the280Seahawks on King 5 or Gonzaga basketball with no subscription281required.282    But streaming has put sports content increasingly behind a283paywall so that only the subscribers can access that, and with284the growing number of exclusivity agreements with sports285leagues, the decline of cable bundle, consumers are facing an286impossible choice, missing an important game or managing, as287the Chairman just mentioned, a confusing array of streaming288media subscriptions.289    So we are here today to hear what it is this committee can290do about this issue. It is interesting that the NFL signed a29110-year media rights contract agreement in 2023 that makes292Amazon Prime its prime partner for Thursday night football, a293deal worth $10 billion.294    Major league soccer's 10-year deal with Apple brought295significant new viewership to sports with the playoff audiences296increasing by 50 percent in a single year.297    So all of these issues make us want to ask the questions298about what content we used to get to watch for free that now we299are paying for, and what in a world where streaming becomes300even easier to get us content what are we doing to make that301content more accessible.302    During the Paris 2024 Olympics allowed consumers access303across the world for the first time to every event live or on304demand. Previously, these events had been prioritized or305limited because of broadcast channels and now consumers can306watch any sport, any race, any preliminary bout, no matter how307many other events are taking place at the same time.308    I like giving consumer choices. Netflix has the rights to309the next Women's World Cup and the WNBA's 2024 season attracted310more than 54 million viewers. There you go for not paying311enough attention to women's basketball in the past, a 170312percent increase over the previous season.313    So there is some good news and that is that we can cover314more. We can give consumers more choice. But I, too, would love315to hear from our witnesses how we are making sure that we are316protecting consumers while we do that.317    Thank you, Mr. Chairman.318    The Chairman. Thank you. I would note the Ranking Member319had some comments on the defunding of NPR, and as some might320say there is the rest of the story.321    The Communications Act requires public media entities like322NPR to strictly adhere to, quote, ``objectivity and balance''323in all programs or series of programs on a controversial324nature.325    Unfortunately, NPR does not. Last Congress I put out a326detailed report how NPR took millions in earmarked donations327from left-wing mega donors for very specific coverage.328    After receiving those donations, NPR churned out content329precisely mirroring its donors' agendas. Likewise, the330congressionally chartered Independent Television Service paid331for documentaries like, quote, ``Racist Trees'' to appear on332PBS.333    NPR's CEO Katherine Maher continues to deny that NPR has a334story selection problem even when senior editors are resigning335because the bias is so overwhelming.336    Yet, NPR continues to have a dedicated news desk for337climate and for race, both of which are propped up by liberal338mega donors.339    This is the same woman who in January 2020, months before340the death of George Floyd, tweeted, quote, ``Yes the North. Yes341all of us. Yes America. Yes our original collective sin and342unpaid debt. Yes reparations. Yes on this day.''343    I think it is more than time for some accountability at344NPR.345    I will now introduce the panel. First, the representatives346from each league will talk about their strategies that they are347pursuing in media rights negotiations as they aim to reach more348fans.349    Our first witness is Kenny Gersh, Executive Vice President350of Media and Business Development at Major League Baseball.351    Our second witness is Bill Koenig, President of Global352Content and Media Distribution, National Basketball353Association.354    Our third witness is David Proper, Senior Executive Vice355President of Media and International Strategy, National Hockey356League.357    Our final witness is John Bergmayer, the Legal Director of358Public Knowledge, who will discuss these issues from the public359benefit and fan perspective.360    Mr. Gersh, you may begin.361362     STATEMENT OF KENNY GERSH, EXECUTIVE VICE PRESIDENT,363      MEDIA  AND  BUSINESS  DEVELOPMENT,   MAJOR  LEAGUE364      BASEBALL365366    Mr. Gersh. Chairman Cruz, Ranking Member Cantwell, and the367members of the Committee, thank you for inviting me here today368to give MLB's perspective on how the sports media ecosystem is369evolving.370    My name is Kenny Gersh and I serve as Executive Vice371President in Media and Business Development for Major League372Baseball. In my role I oversee MLB's relationships with media373rights holders and distribution partners as well as our direct374to consumer product MLB.tv.375    Currently, there are three main ways that we make live MLB376games available to fans in the United States: national games,377locally broadcast regular season games, and out of market378regular season games.379    Looking to the future, as existing contracts expire we380intend to partner with entities that will make our games381available to the broadest possible audience and to eliminate382territorial restrictions to make our games available to any fan383that wants to watch them, regardless of location.384    First, the league itself distributes our Jewel Events385consisting of all postseason games, the All-Star game, and the386Home Run Derby, as well as a package of regular season games387that are distributed nationally, consisting of fewer than 10388percent of the 2,430 regular season games we play each year.389    Our most important events, the World Series and All-Star390game, along with a package of regular season games are made391available on Fox, an over-the-air broadcast network.392    We also distribute regular season games and the remainder393of our postseason games on TBS and ESPN, two wildly available394linear channels.395    Finally, we work with new media entities including Apple396and Roku to make a small selection of regular season games397widely available to our fans.398    Second, each club retains the right to distribute their399regular season games within their own home television territory400with the exception of the small amount of games that are chosen401for national broadcasts.402    The predominant way that MLB clubs have distributed live403games to fans in their local markets has been through the Pay404TV ecosystem via regional sports networks. The system worked405well for baseball fans for many years when most households406subscribed to a Pay TV service.407    However, over the last decade, as more and more408entertainment content began to migrate to streaming services409fewer households subscribed or continued to subscribe to Pay TV410packages.411    To make matters worse, as the number of Pay TV subscribers412continues to decline Pay TV distributors have begun to relegate413the RSNs to more expensive tiers or not carry them at all.414    As a result, the RSN model has begun to crumble. The lack415of availability of the RSNs on many Pay TV systems or the need416to subscribe to a higher tier to receive them has created what417is known as local blackouts.418    Finally, the league itself makes all regular season games419of every club available outside of each club's home television420territory via two subscription products: Extra Innings, which421is sold via Pay TV providers as an add-on service to their422customers, and MLB.tv, which is sold as a direct to consumer423product by the league and available on all internet-connected424devices.425    In 2024, MLB.tv streamed over 14 billion minutes of live426game action to our fans and we are on pace to surpass this427record-setting level in 2025.428    Overall, the fans' response to MLB.tv has been429overwhelmingly positive. However, historic contractual430arrangements prevented us from making games available in the431club's home television territories, leading to additional fan432frustrations with local blackouts.433    The combination of declining affordable access to regional434sports networks via Pay TV and the lack of access to fans' home435teams' games via MLB.tv or other direct to consumer offerings436presents obvious challenges and frustrations for fans.437    Commissioner Manfred identified expanding MLB's reach as438one of his top priorities. I am happy to report that thanks to439the commissioner's focus on this issue more MLB games are440available to fans than ever before in the history of our sport.441    After the recent launch right here in Washington by MASN of442their own direct to consumer service, for the first time ever44329 of our 30 MLB clubs are now accessible throughout their home444television territory via direct to consumer offerings,445virtually eliminating the problem of local blackouts.446    In addition, we have also been experimenting with other447methods of making games more available to fans. For the 2025448season a majority of our clubs now make a package of games449available locally via free over-the-air broadcasts, and on the450national level we make a package of games freely available via451the Roku channel.452    Thank you again for inviting me to testify today. I would453be happy to answer any questions you may have.454    [The prepared statement of Mr. Gersh follows:]455456Prepared Statement of Kenny Gersh, Executive Vice President, Media and457              Business Development, Major League Baseball458459    Chairman Cruz, Ranking Member Cantwell and the members of the460Committee, thank you for inviting me here today to give MLB's461perspective on how the sports media ecosystem is evolving.462    My name is Kenny Gersh, and I serve as Executive Vice President,463Media and Business Development for Major League Baseball. In my role, I464oversee MLB's relationships with media rightsholders and distribution465partners as well as our direct-to-consumer product, MLB.TV.466    Currently, there are three main ways that we make live MLB games467available to fans in the United States:468469  1.  National Games: The League itself distributes our Jewel Events470        consisting of all postseason games, the All-Star Game and the471        Home Run Derby as well as a package of regular season games472        that are distributed nationally, consisting of fewer than 10473        percent of the 2,430 regular season games we play each year.474475  2.  Local Regular Season Games: Each Club retains the right to476        distribute their regular season games within their own home477        television territory, with the exception of the small amount of478        games that are chosen for national broadcast.479480  3.  Out of Market Regular Season Games: The League itself makes all481        regular season games of every Club available outside of each482        Club's home television territory via two subscriptions483        products--Extra Innings which is sold via Pay TV providers as484        an add on service to their customers and MLB.TV which is sold485        as a direct to consumer product by the League and available on486        all Internet connected devices including Smart TVs, mobile487        devices and computers.488489    Looking to the future, as existing contracts expire, we intend to490partner with entities that will make our games available to the491broadest possible audience and to eliminate territorial restrictions to492make our games available on one or more platforms to any fan that wants493to watch them regardless of location.494    At the national level, our most important events, the World Series495and All-Star Game, along with approximately 60 exclusive nationally496broadcast regular season games are made available on FOX, an over the497air broadcast network. Our other primary national broadcast partner,498WBD, makes postseason games available via the widely distributed Pay TV499channel TBS and on their direct-to-consumer service, MAX. We also work500with new media entities, including Apple and Roku, to make a selection501of regular season games available to fans that are outside of the Pay502TV ecosystem.503    Since the late 1990s, the predominant way that MLB Clubs have504distributed live games to fans in their local markets has been through505the Pay TV ecosystem. The bulk of each individual Club's regular season506games have traditionally been licensed to Regional Sports Networks507(known as ``RSNs'') which were primarily distributed in each Club's508home television territory via Pay TV systems including cable, satellite509and IPTV providers. This system worked well for baseball fans for many510years. Most homes in the United States subscribed to a pay TV service,511peaking at approximately 105 million households in 2010. An512overwhelming majority of those households subscribed to basic-tier513packages that included access to their local sports teams. However,514over the last decade, as more and more entertainment content began to515migrate to streaming services, fewer households subscribed, or516continued to subscribe, to pay television packages. To make matters517worse, as the number of pay television subscribers continues to518decline, Pay TV distributors have begun to relegate the RSNs to more519expensive tiers or not carry them at all. As a result, the RSN model520has begun to crumble. The lack of availability of the RSNs on many Pay521TV systems, or the need to subscribe to a higher tier to receive them,522has created what is known as ``local blackouts.''523    In addition to the regular season games that are available via our524national partners and locally via RSNs, Major League Baseball makes all525regular season games available outside of each Club's home television526territory via Extra Innings and MLB.TV. MLB.TV is a direct-to-consumer527service originally launched by Major League Baseball in 2003 to makes528games accessible to the fans that live outside of their favorite team's529home television territory. In 2024, MLB.TV streamed over 14 billion530minutes of live game action to our fans and we are on pace to surpass531this record setting level in 2025. Overall, the fans response to MLB.TV532has been overwhelmingly positive, however, historic contractual533arrangements prevented us from making games available in the Club's534home television territories, leading to additional fan frustration with535local blackouts.536    The combination of declining, affordable access to Regional Sports537Networks, and the lack of access to fan's home team games via MLB.TV or538other direct-to-consumer offerings presents obvious challenges.539Commissioner Manfred identified expanding MLB's reach as one of his top540priorities. I am happy to report that, thanks to the Commissioner's541focus on this issue, more MLB games are available to fans than ever542before in the history of our sport.543    Faced with the crisis hitting the Regional Sports Network business,544MLB built out the capability to produce and distribute live baseball545games directly. Due to MLB's preparation and efforts, when certain RSNs546shut down or dropped the rights to carry an MLB team, MLB was able to547step in to immediately produce and distribute those games, ensuring548there was no interruption for our fans ability to continue to watch549those games on the same Pay TV systems that had previously carried550them. Each time MLB took over the production and distribution of a551Club's games, we immediately launched local direct-to-consumer552services, expanding the availability of those Club's games to every fan553in their market, many of whom had previously been blacked out due to554their local RSN not being made available on their Pay TV system, if555they subscribed to one at all.556    After the recent launch by MASN here in Washington of their own557direct to consumer service, for the first time ever, 29 of our 30 MLB558clubs are now accessible in their home television territory via direct-559to-consumer offerings, virtually eliminating the problem of local560blackout of MLB games in the United States.561    In addition to the wide availability of direct-to-consumer options,562we have also been experimenting with other methods of making more games563available to more fans. For the 2025 season, a majority of our Clubs564now make a package of games available locally via free over the air565broadcasts. On the national level, we have experimented with making566games freely available via Internet connected devices, most recently567with a package of games that are freely available via the Roku Channel.568    Going forward, we will continue to focus on responding to the569changes in the evolving media environment in a way that increases our570reach and fan access to our games, so that whether a fan is a Pay TV571subscriber or not, there is a frictionless opportunity to watch any572game the fan wants to watch.573    Thank you again for inviting me to testify today. I would be happy574to answer any questions you might have.575576    The Chairman. Thank you.577    Mr. Koenig.578579            STATEMENT OF WILLIAM KOENIG, PRESIDENT,580             GLOBAL CONTENT AND MEDIA DISTRIBUTION,581                NATIONAL BASKETBALL ASSOCIATION582583    Mr. Koenig. Good morning, Chairman Cruz, Ranking Member584Cantwell, and members of the Committee.585    My name is Bill Koenig and I am the President of Global586Content and Media Distribution for the NBA and responsible for587the NBA's and the WNBA's media arrangements.588    I have been with the NBA for 35 years and have focused on589distribution of our content including our live game telecasts590for the majority of that time. Thank you for inviting me to591testify today.592    I am especially pleased to testify about the NBA's new593national media agreements with Disney, NBC Universal, and594Amazon. Starting next season our fans will have unprecedented595access to more than 300 nationally televised games, five times596more national game telecasts on free over-the-air networks, and597every national game telecast through broadly distributed598streaming services.599    But it was not always that way. In the 1960s our games were600rarely seen on national television, and when they were they601were often relegated to segments on ABC's ``Wide World of602Sports'' rather than a stand alone broadcasts, and into the6031980s our finals games featuring legends such as Larry Bird,604Magic Johnson, Kareem Abdul-Jabbar, and Julius Irving were not605aired live but on tape delay at 11:30 p.m. after the local606news.607    We have come a long way. Part of that success comes from a608sustained focus on serving our fans by adapting to609technological advances and evolving media consumption patterns,610which have shifted dramatically over the past decade.611    Ten years ago, more than 100 million U.S. households612subscribe to cable, satellite, and telco providers and about 60613million households subscribe to streaming services.614    Today, the number of households that subscribe to those Pay615TV providers has declined sharply to about 45 million. That is616about one-third of the households that have access to broadcast617television and one-third of the nearly 120 million that618subscribe to a streaming service.619    And some of the leading streaming services like Amazon620Prime Video reach almost twice the number of households than621any cable network.622    As a result, far more video is consumed today through623streaming services than through pay television, and this shift624is particularly significant for the NBA which has the youngest625average fan base of any major league.626    These trends were top of mind as we negotiated our new627national agreements. One of our top priorities was to ensure628that we serve all fans.629    So for those who watch the NBA on traditional television we630sought to significantly increase the number of games made631available nationally on free broadcast television, and for the632growing number of fans who use streaming services and digital633platforms we aim to significantly increase the number of games634made available through those platforms and to provide them with635the many unique benefits that digital distribution enables636including personalized viewing experiences and an array of637interactive video and audio options.638    We believe we achieved the right balance. Under these new639agreements we will have more national NBA game telecasts than640ever before, over 300 games.641    We will have an unprecedented number of regular season642games on free over-the-air networks--75, which is five times643more than under the current deals--and about two times the644number of playoff games including every game of the NBA finals645will air on free over-the-air networks.646    To serve the growing number of fans who prefer digital647platforms, every single national game telecast will also be648available through broadly distributed streaming services, and649while there will be some games exclusively on Prime Video it is650important to note that Prime Video is the most widely available651subscription streaming service in the country and our analysis652shows that nearly 90 percent of our fans watch non-NBA653programming on Prime Video already.654    The WNBA also entered into national deals with Disney, NBC655Universal, and Amazon last year. Under those agreements more656WNBA game telecasts will be available nationally on major657television networks and streaming services than at any time in658the league's history, and from a revenue perspective these new659arrangements represent the largest media deal ever in women's660sports.661    And there is more to come because the WNBA can do662additional national deals and thereby achieve even greater663exposure in revenue. The popularity of the WNBA has grown664exponentially in recent years and these arrangements will665enable that growth to continue.666    My written statement addresses two other topics: first, the667measures we have taken to make our games easier to find and668access and, second, the steps our teams have taken to reach669more fans with their local telecasts.670    I do not have time to address those topics in my testimony671today but I am, of course, happy to answer any questions you672may have on those topics.673    Thank you, and I look forward to your questions.674    [The prepared statement of Mr. Koenig follows:]675676  Prepared Statement of William Koenig, President, Global Content and677          Media Distribution, National Basketball Association678679    Good morning Chairman Cruz, Ranking Member Cantwell, and members of680the Committee. My name is Bill Koenig, and I am the President of Global681Content and Media Distribution for the NBA and am responsible for the682NBA's and WNBA's media arrangements. I have been with the NBA, in683various capacities, for nearly 35 years, focused on media distribution684of our content, including our live game telecasts, for the majority of685that time. Thank you for inviting me to testify about the NBA's686approach to game telecast distribution and about the media issues687facing sports leagues more generally.688    I am especially pleased to testify about the NBA's new national689media arrangements with Disney, NBC Universal and Amazon. Starting next690season, our fans will have unprecedented access to (i) more than 300691nationally telecast games, (ii) five-times more national game telecasts692on free over-the-air networks and (iii) every national game telecast693through broadly-distributed streaming services.694695Brief NBA Broadcasting History696697    As brief background, the NBA is made up of 30 teams throughout698North America, 29 in the United States and one in Canada. Our live game699telecasts are available on television and other devices throughout the700United States and over 200 other countries and territories. But it was701not always this way. In the 1960s, our games were rarely available on702national television--and when they were, they were often relegated to703segments on ABC's Wide World of Sports rather than as standalone704broadcasts. And into the 1980s, our Finals games (featuring legends705such as Larry Bird, Magic Johnson, Kareem Abdul-Jabbar and Julius706Erving) were not aired live, but on tape delay (at 11:30 p.m. after the707local news). I am pleased to say that we have come a long way, which is708a testament to our teams, players, the appeal of our game and our709efforts to respond to technological advances in media for the benefit710of our fans.711712Importance of Serving Our Fans713714    Part of that success comes from a sustained focus on serving our715fans by studying and adapting to evolving media consumption patterns,716which have shifted dramatically over the past decade. Ten years ago717when we entered into our current national television agreements with718Disney and Turner Broadcasting Systems (now, Warner Bros. Discovery),719more than 100 million U.S. households subscribed to ``pay television''720(i.e., cable, satellite and telco video providers that offer packages721with linear networks like Fox and ESPN), the number of pay television722households was almost 90 percent of the number of broadcast television723households, and about 60 million households subscribed to streaming724services (e.g., Netflix or Amazon Prime Video). Today, the number of725U.S. households that subscribe to pay television has declined sharply726to about 45 million--about one-third of the 126 million households that727have access to broadcast television, and the nearly 120 million that728subscribe to a streaming service. And some of the leading individual729streaming services (e.g., Amazon Prime Video) reach nearly twice the730number of households than any cable network reaches. As a result, far731more video is consumed today through streaming services than through732pay television--and this shift is particularly significant for the NBA733which has the youngest average fan base of any major league (44 years734old), whereas the average age of a cable network viewer during prime735time is over 60 years old.736    These trends were top of mind as we negotiated our new national737media agreements, which will begin next season. One of our top738priorities was to ensure that we serve all our fans. So, for those who739engage with the NBA through pay television, we sought to significantly740increase the number of games made available nationally on free741broadcast television. And for the growing number of fans (particularly742younger fans) who consume content predominantly through streaming743services and digital platforms, we sought to significantly increase the744number of games made available through those platforms and are hard at745work with our partners to provide fans with the many benefits that746digital distribution enables, including personalized, communal and747immersive viewing experiences that engage fans with an array of748interactive, fantasy and statistical features, alternative video and749audio options, user-generated content and e-commerce integrations and750much more.751752New National Media Deals753754    We believe we achieved this balance in our new national media deals755with Disney, NBC Universal and Amazon. Under these agreements, starting756next season, more national NBA game telecasts will be available than757ever before (over 300 games). An unprecedented number of regular season758games will be broadcast on free over-the-air networks (ABC and NBC)759each season (75 games--which is five times the number under our current760deals). And approximately two times the number of playoff games,761including every game of the NBA Finals, will be broadcast on free over-762the-air networks each season.763    In addition, to serve the growing number of fans who prefer to764engage with the NBA through digital platforms, every single national765game telecast will be available through broadly distributed streaming766services--Amazon Prime Video, Peacock and the ESPN direct-to-consumer767(``DTC'') service set to launch before next season. For many pay768television subscribers (e.g., Charter customers in states such as769Texas, Hawaii, North Carolina, Ohio and Wisconsin), the ESPN DTC770service and Peacock will be included at no additional cost as part of771their video subscription. And while there will be some games772exclusively available on Amazon Prime Video, it is important to note773that (i) Prime Video is the most widely available streaming service in774the United States, with more than 100 million households that currently775subscribe to it and (ii) our analysis shows that nearly 90 percent of776our U.S. fans already watch non-NBA programming on Prime Video.777    Overall, our new national media deals represent a significant step778forward for the NBA and its fans. NBA games will be available779nationally (and routinely) every night of the week in the latter half780of the season: Monday on Peacock, Tuesday on NBC, Wednesday on ESPN,781Thursday and Friday on Amazon Prime Video, Saturday evenings and Sunday782afternoons on ABC and Sunday evenings on NBC. That is unprecedented and783consistent exposure for our league and, most importantly, expanded784access for our fans.785786Discoverability and Accessibility787788    As the NBA negotiated our new national media agreements, we were789mindful of the concerns expressed by some consumers regarding the790fragmentation of telecast outlets for sports (and other) content and791the related concern that, with so many outlets distributing games of a792particular league or sport, it can be difficult for fans to find and793access the content (including game telecasts) that they want to watch.794    Cognizant of those concerns, in our national media negotiations, we795took steps to address them. First, although several media and796technology companies sought national NBA telecast distribution rights,797we concluded that having just three national media partners would best798serve the interests of our fans and decided against dividing our799national rights into more packages.800    Second, it was important to us, in determining the optimal801combination of partners, that Peacock and the ESPN DTC service are802increasingly being included in video subscriptions offered by many pay803television providers and that Amazon Prime Video is already available804to almost every U.S. television household.805    We also sought to make our games easier to find and access in a806number of ways. As described above, we structured our schedule so that807games air on a consistent night of the week for each national partner,808making it easier for our fans to remember, adapt and watch. In809addition, each of our media partners has agreed to allow the NBA App810and other NBA platforms to serve as ``front doors'' to all national811(and virtually all local) game telecasts. When fans want to check a812score, or are unsure where a game is being telecast, all they need to813do is go to the NBA App and be automatically directed to the game814telecast on the relevant digital platform.815    Similarly, we are working with a myriad of league and team business816partners to promote game telecasts and provide similar direct access to817live telecasts. For example, if a fan is watching a highlight on a818social media app, we will provide links and other tools endemic to the819platform that will enable that fan to go straight into a game telecast.820These fan-friendly options are only possible because every national821game telecast is available on a digital platform.822823Local Game Telecasts824825    A team's games that are not selected for national telecast by one826of the NBA's three national partners are made available in the team's827local market, typically by a regional sports network (``RSN''). More828than any other participant in the pay television ecosystem, RSNs have829been adversely affected by ``cord-cutting,'' carriage disputes and re-830positioning of networks to more expensive, lesser-penetrated831programming tiers. Pay television subscribers to RSNs have dropped by832nearly 50 percent in just the last five years and continue to decline.833In addition to negatively affecting our teams' ability to reach fans834with game telecasts, team revenues from both RSNs directly and other835business lines, such as merchandise and ticket sales, that depend on836broad telecast exposure have been negatively affected by the decline in837RSN subscribers.838    Because reaching fans with game telecasts is so important to the839NBA, our teams continually look to optimize the distribution of their840local telecasts through both traditional linear television channels as841well as streaming services. To that end, a number of teams have shifted842in recent years from RSNs (due to the factors mentioned above) to a843combination of local over-the-air broadcasts and digital DTC844distribution for their game telecasts. In each such case, they have845been able to reach more fans. In fact, this season, there were more846local game telecasts available on free over-the-air stations (570) than847at any time in the last 20 years. Twenty-one of our 29 U.S. teams848distributed games on broadcast stations this season (compared to one849team only three years ago).850    Although the NBA for more than a decade has authorized RSNs to851distribute game telecasts through digital means, it has been only in852the last three years that RSNs have begun to do so on a digital direct-853to-consumer (i.e., streaming) basis. Recognizing the importance of854reaching fans (especially young fans) through digital platforms and the855many ways digital distribution can engage fans, teams have encouraged856RSNs to deliver games through digital means and, in some cases, do so857themselves. As a result, whereas no package of a team's games was858available on a digital platform only a few years ago, today, 28 of the85929 domestic teams' games are distributed through digital subscription860offerings.861862WNBA863864    The WNBA also entered into national media agreements with Disney,865NBC Universal and Amazon last year, commencing with the 2026 season.866Under those agreements, more WNBA game telecasts will be available867nationally on broadly distributed national television networks and868streaming services (the ABC and NBC broadcast networks, ESPN and USA869cable networks and the Prime Video, Peacock and ESPN streaming870services) than at any time in the league's history. From a revenue871perspective, these new WNBA arrangements, in the aggregate,872    represent the largest media deal ever in women's sports. And there873is more to come. The WNBA has retained the flexibility to do additional874national media deals (and thereby achieve even greater exposure and875revenue), which the league is actively exploring. The popularity of the876WNBA has grown exponentially in recent years, and these arrangements877will enable that growth to continue.878879Conclusion880881    The NBA is committed to providing all fans--whether they subscribe882to pay television, streaming, or both--with access to hundreds of game883telecasts each season. Expanding the reach of, and engagement with, our884game telecasts are the principal objectives underlying our new national885media agreements, our evolving linear and digital distribution approach886to local telecasts and our popular NBA League Pass offering (the NBA's887so-called ``out-of-market'' subscription service that gives fans access888to all non-national game telecasts outside the market in which they889reside, and which is available through both traditional pay television890providers and digital platforms).891    By making more games available nationally (including a record892number of games on free broadcast networks) and every national game893telecast available through widely available streaming services, and by894continuing to distribute local and League Pass game telecasts through895both pay television and digital services, we believe that our896arrangements are well positioned to accomplish those objectives. We897also believe the steps we are taking to make our games easier to find898and access will address any fragmentation-related concerns as our899distribution paradigm continues to adapt to changes in the video900consumption habits of our fans. Our goal remains to serve the interests901of our fans, and we will continue to adjust our arrangements and902approach with that goal in mind.903    Thank you, and I look forward to your questions.904905    The Chairman. Thank you.906    Mr. Proper.907908     STATEMENT OF DAVID M. PROPER, SENIOR EXECUTIVE VICE909      PRESIDENT,   MEDIA   AND  INTERNATIONAL  STRATEGY,910      NATIONAL HOCKEY LEAGUE911912    Mr. Proper. Chairman Cruz, Ranking Member Cantwell, and913members of the Committee, good morning. Thank you for the914opportunity to appear before the Committee today on behalf of915the National Hockey League.916    My name is David Proper and I am the Senior Executive Vice917President of Media and International Strategy for the NHL. In918that role I have overseen the NHL's media relationships919worldwide for the past 15 years.920    We appreciate your leadership in examining the evolving921sports media landscape and its impact on fans, leagues, teams,922media companies, and communities across the country.923    The NHL is a 107-year-old league with deep roots in North924American communities and a strong global presence. In the last925few years alone we have seen record attendance, increased926viewership, and substantial growth in youth participation.927    While we are incredibly proud of this momentum, we are also928focused on the continuing responsibility to ensure our games929are available to our fans in a manner that fulfills their930sports viewing preferences.931    At the core of our media strategy is a simple idea, meet932the fans where they are. In the United States, our national933media partnerships allow us to deliver NHL games across a wide934array of channels and formats.935    Live games air nationally on ESPN, ABC, TNT, TBS, and the936NHL network, and on top streaming platforms including ESPN+,937Hulu, and Max.938    Whether on a traditional cable or satellite box, a mobile939device, or a smart TV, fans in the United States can access940live hockey in more ways than ever before.941    We are also committed to keeping fans connected to their942hometown teams. NHL games continue to be shown regionally943through local media partners.944    While the traditional RSN model has faced recent945disruption, we are actively working to support our teams and946their partners to respond to changes in the evolving media947landscape.948    Such responses include restructuring existing, often long949standing RSN arrangements, entering into regional agreements950with broadcast affiliates, and/or launching digital direct to951consumer products both on a subscription fee basis and on a952free to consumer ad-supported basis.953    The market, however, is clearly in a state of flux. Every954player in this ecosystem--the leagues, the teams, the955distributors and the platforms--are working to identify the956best ways to serve fans in a rapidly changing environment.957    We believe it is important to allow the market to settle958and stabilize so that the long-term sustainable solutions can959emerge.960    As our business continues to grow and expand, our ultimate961goal remains the same--to ensure that NHL content remains962accessible and affordable for fans.963    But the fan-viewing experience is about more than just964platforms. It is also about production and content.965    In that vein, we are embracing media innovations including966nontraditional broadcast formats serving specific demographic967groups such as animated game broadcast for children, data-casts968for avid stat-focused fans, and American Sign Language game969productions for our hearing-impaired fans.970    We are also focused on producing real-time data overlays,971nongame programming content, and personalized viewing options,972all of which help us reach broader audiences.973    We are committed to serving the full spectrum of our974audience, whether as a child watching their first Cap's playoff975game tonight, a lifelong fan catching a game on their phone976during a commute, or a member of the United States military977stationed overseas looking for a taste of home.978    We want the game to be easy to find, easy to follow, and979easily available. At the same time, we understand that the way980fans access our game continues to evolve and vary widely.981    Some rely on traditional broadcast systems while others are982embracing new digital platforms. As the media landscape983continues to change we remain focused on ensuring that our984content is as accessible and engaging as possible for all fans,985wherever and however they choose to watch.986    For us, this is not a media strategy. Serving our fans is a987mission shared by the entire league. After 107 years, the NHL988is proud to be evolving and proud to be building a future where989hockey reaches more people in more meaningful ways than ever990before.991    Thank you again for the opportunity to appear before you992and I look forward to answering any questions.993    [The prepared statement of Mr. Proper follows:]994995Prepared Statement of David M. Proper, Senior Executive Vice President,996        Media and International Strategy, National Hockey League997998    Chairman Cruz, Ranking Member Cantwell, and Members of the999Committee:10001001    Thank you for the opportunity to appear before the Committee today1002on behalf of the National Hockey League. We appreciate your leadership1003in examining the evolving sports media landscape and its impact on1004fans, leagues, teams, media companies, and communities across the1005country.1006    The NHL is a 107-year-old League with deep roots in North American1007communities and a strong global presence. In the last few years alone,1008we have seen record attendance, increased viewership, and substantial1009growth in youth participation. While we are incredibly proud of this1010momentum, we are also focused on the continuing responsibility to1011ensure our games are available to our fans in a manner that fulfills1012their sports viewing preferences.1013    At the core of our media strategy is a simple idea: meet fans where1014they are. In the United States, our national media partnerships allow1015us to deliver NHL games across a wide array of channels and formats.1016Live games air nationally on ESPN, ABC, TNT, TBS and NHL Network and1017top streaming platforms including ESPN+, Hulu, and Max. Whether on a1018traditional cable or satellite box, a mobile device, or a smart TV,1019fans in the United States can access live hockey in more ways than ever1020before.1021    We are also committed to keeping fans connected to their hometown1022teams. NHL games continue to be shown regionally through local media1023partners. While the traditional RSN model has faced recent disruption,1024we are actively working to support our teams and their partners to1025respond to changes in the evolving media landscape. Such responses1026include restructuring existing, often long-standing, RSN arrangements,1027entering into regional agreements with broadcast affiliates, and/or1028launching digital direct to consumer products, both on a subscription-1029fee basis and on a free-to-the-consumer ad-supported basis.1030    The market, however, is clearly in a state of flux. Every player in1031this ecosystem--leagues, teams, distributors, and platforms--is working1032to identify the best ways to serve fans in a rapidly changing1033environment. We believe it is important to allow the market to settle1034and stabilize so that long-term, sustainable solutions can emerge. As1035our business continues to grow and expand, our ultimate goal remains1036the same: to ensure that NHL content remains accessible and affordable1037for fans.1038    But the fan viewing experience is about more than just platforms--1039it's also about production and content. In that vein, we are embracing1040media innovations, including non-traditional broadcast formats serving1041specific demographic groups, such as animated game broadcasts for1042children, data-casts for avid stat-focused fans, and American Sign1043Language game productions for our hearing-impaired fans; real-time data1044overlays, non-game programming content, and personalized viewing1045options--all of which help us reach broader audiences.1046    We are committed to serving the full spectrum of our audience--1047whether it is a child watching their first Stanley Cup Final, a1048lifelong fan catching a game on their phone during a commute, or a1049member of the United States military stationed overseas looking for a1050taste of home. We want the game to be easy to find, easy to follow, and1051easily available.1052    At the same time, we understand that the way fans access our game1053continues to evolve and vary widely. Some rely on traditional broadcast1054systems, while others are embracing new digital platforms. As the media1055landscape continues to change, we remain focused on ensuring that our1056content is as accessible and engaging as possible for all fans--1057wherever and however they choose to watch.1058    For us, this is not just a media strategy--serving our fans is a1059mission shared by the entire League. After 107 years, the NHL is proud1060to be evolving and proud to be building a future where hockey reaches1061more people in more meaningful ways than ever before.1062    Thank you again for the opportunity to appear before you. I look1063forward to your questions.10641065    The Chairman. Thank you.1066    Mr. Bergmayer.10671068         STATEMENT OF JOHN BERGMAYER, LEGAL DIRECTOR,1069                       PUBLIC KNOWLEDGE10701071    Mr. Bergmayer. Chairman, Ranking Member, and members of the1072Committee, thank you for inviting me to testify today.1073    Streaming video has benefited viewers in many ways.1074Millions of Americans have discovered they can get content more1075cheaply and conveniently through streaming services than with1076traditional cable or satellite TV.1077    With online video people can pick and choose services1078instead of being forced into bloated cable bundles. They can1079watch on different devices inside and outside the home.1080Streaming also gives diverse content creators opportunities to1081reach audiences in ways not possible before.1082    For sports specifically streaming has bought benefits, too.1083It is easier for fans to watch out-of-market games. Streaming1084platforms can integrate sport-specific features not possible on1085broadcast or cable, and it is easier to access sports beyond1086the major professional leagues.1087    But the transition to streaming has not been smooth. The1088proliferation of services and fragmentation of content means1089costs are rising. As the Ranking Member noted, many viewers1090feel they finally broke free of the cable bundle only to watch1091it reform before their eyes.1092    Having to manage various accounts, download multiple apps,1093and track numerous subscription payments burdens viewers. Apps1094can be buggy and inconsistent, and there is simply no one place1095to look to figure out where to watch what you want.1096    To follow their favorite baseball team a fan might need1097Apple TV+ for $10 a month, MLB.tv for $150 per season, and a1098traditional or virtual MVPD like YouTube TV for about $85 a1099month at a minimum, and even then carriage of regional sports1100networks or sports channels is far from universal and some1101games might fall through the cracks.1102    Across many sports, fans might try to watch a game and1103unexpectedly find it is on a streaming service they do not use.1104Confusing blackout rules mean games available online in one1105market might not be available in another, with local teams and1106playoff games most often affected.1107    Video quality might be poor due to inadequate broadband and1108online streams may lag significantly behind real time. Fan1109frustration is acute because many games once available on free1110broadcast TV are moving to paid streaming services.1111    Millions of viewers still mostly watch TV through1112broadcast, cable, and satellite, especially older viewers with1113lifelong attachments to teams whose games are now difficult to1114find.1115    The current market structure is not a consequence of a free1116market. It results from decades of regulatory arbitrage and1117market power exploitation.1118    Regional sports networks emerged not from natural market1119evolution, but as a way for cable operators to evade program1120access rules.1121    Sports were a major contributor to inflated cable bills in1122many ways. The collapse of this model is tied to the rise of1123streaming as viewers cut the cord, cable companies lose1124leverage, and leagues can pitch streamers against traditional1125distributors.1126    Let me share a personal example. Two weeks ago, a Cubs-1127Phillies game was mistakenly blacked out for me in D.C.1128    The game was not on broadcast or cable TV locally or1129nationally and simply should not have been blacked out. MLB's1130in app customer service was unresponsive, eventually resolved1131it through social media by providing my IP address and zip code1132for a manual override.1133    This is, clearly, not sustainable. Streaming is no longer1134an afterthought. We need to ensure that shifts in media1135technology and sports benefit viewers with cheaper and more1136convenient options.1137    Sports have outsized civic, cultural, and economic1138importance. Teams receive taxpayer subsidies through stadiums1139and special tax deals.1140    Major leagues enjoy special exemptions from antitrust laws1141through the Sports Broadcasting Act and Supreme Court1142decisions. Publicly subsidized sports and teams should clearly1143communicate to fans where games will be available.1144    They should commit to making games available free of charge1145in their local market, either on broadcast or free streaming.1146There is no reason for public money to support private sports1147organizations without clear public benefit.1148    Further, Congress should consider legislation like the Stop1149Sports Blackouts Act, which would mandate refunds for channels1150lost due to disputes.1151    Leagues and policymakers must recognize that easy,1152affordable access is crucial for the future of sports1153viewership. Young people no longer discover sports by flipping1154through channels so they need to be accessible in other ways.1155    Policies prioritizing immediate profits through exclusive1156deals and expensive pay walls threaten to alienate existing1157fans and lose the next generation.1158    More broadly, everyone in the streaming market should focus1159on providing a good viewer experience rather than customer lock1160in. Online video services should recognize that viewers often1161mix and match services and facilitate this instead of blocking1162it.1163    Sports in particular show the need for consistency and1164predictability. Leagues should avoid abrupt changes to how1165people watch games.1166    They should avoid overly complex licensing that fragments1167individual sports across a variety of services and move past1168media deals that penalize local market viewers.1169    Practices that prioritize short-term gain can harm the1170long-term sustainability of professional sports because people1171have many other things to watch.1172    MLB Commissioner Rob Manfred said, ``We hate blackouts as1173much as fans do'' and that ending local blackouts was1174``business objective number one.''1175    He stated, ``We need to be out of the business of1176blackouts, telling people who want to watch games that we will1177not sell them to you.''1178    But this vision has not yet come to pass for any of the1179major sports, and fans continue to face an expensive patchwork1180of services.1181    Thank you for the opportunity to testify today and I1182welcome your questions.1183    [The prepared statement of Mr. Bergmayer follows:]11841185 Prepared Statement of John Bergmayer, Legal Director, Public Knowledge11861187    Streaming video has benefited viewers in many ways, and the1188prevalence of cord-cutting backs that up. Millions of Americans have1189discovered that they can get the content they want more cheaply and1190conveniently through streaming services than with traditional1191multichannel video programming distributors (MVPDS) like cable and1192satellite TV providers.1193    With online video, people can pick and choose services, instead of1194being forced into bloated cable bundles. They can watch video on many1195different kinds of device, inside the home and outside of it, instead1196of being limited to rented cable set-top boxes. Online video also gives1197diverse content creators an opportunity to reach audiences in ways that1198were not possible when broadcast and MVPDs were the main source of1199video programming.1200    When it comes to sports, streaming has brought benefits as well.1201It's easier for fans to watch out-of-market games, and streaming1202platforms can integrate sports-specific features (like MLB's Gameday)1203that are not possible on broadcast or cable. It's also easier for1204viewers to access sports content outside of the major professional1205leagues and collegiate conferences. Major services like ESPN+ carry1206sports like Ultimate Frisbee and Lacrosse. Organizations like the1207Professional Darts Association provide their own video content online.1208Apple distributes Major League Soccer, and Formula One racing is1209finding a larger audience in the United States in part due to the1210success of ``Drive to Survive'' on Netflix. HBCU Go offers easy access1211to collegiate sports from Historically Black Colleges and Universities.1212    But the transition to streaming hasn't been entirely smooth. The1213proliferation of streaming services, and the fragmentation of content1214between them, means that the costs of watching streaming video are1215rising, and for many people can approach what they were paying on their1216cable bill. Some viewers feel like they finally broke free of the cable1217bundle only to watch it re-forming between their eyes. New major video1218apps are launched, shut down, and rebranded on a regular basis, and1219people might sign up to a service to watch particular content only to1220have it disappear without warning.1221    Having to set up and remember various accounts, having to download1222and sign in to a proliferation of apps (often from content providers1223that have no clear brand identity or specialization), and having to1224track a number of monthly subscription payments can be a burden on1225viewers. A number of businesses have even sprung up that promise to1226help people manage their increasing monthly subscriptions. Streaming1227apps can be buggy, and apps from different services might work and be1228organized differently from each other. Many apps do not support1229``universal search'' features even if they are available, meaning that1230users looking for something to watch might spend more time flipping1231between apps than people used to spend flipping between channels. There1232is simply no one place to look to figure out where to watch what you1233want.1234    Some user experience problems with online video can be quite1235pronounced with sports. To watch MLB Baseball, for instance, a fan1236might need to subscribe to Apple TV+ and MLB.tv as well as a1237traditional cable or satellite multichannel video programming1238distributor (MVPD) or a ``virtual'' MVPD (vMVPD) like YouTube TV or1239Fubo--and even then, carriage of Regional Sports Networks (RSNs) or1240sports channels like the MLB or NHL Network by MVPDs and vMVPDs is far1241from universal, and sports-specific channels have frequently vanished1242from subscriber's lineups, even mid-season. With traditional TV, even1243when games might be on different networks on different days, at least a1244fan could simply switch channels. Watching games now requires that a1245fan have a compatible device, a fast broadband connection, an account1246(free in some cases, not in others) with each service, and the ability1247to download and configure an app for each service. All of this might be1248fine for the early adopters of online video. But we're well past that1249point. Watching sports online has a few other sour points as well.1250Confusing and fan-hostile blackout rules mean that games available1251online in one market may not be available in another. Due to inadequate1252broadband or weak WiFi in the home, video quality might be poor. Online1253sports streaming may also be significantly laggy, meaning that viewers1254might be watching events that are seconds or minutes behind real time.1255In the days of live reactions to games on social media, this means that1256a viewer may find out what happens in a game on X or Bluesky before1257seeing it on screen.1258    The rise in streaming and cord-cutting is undoubtedly a cause of1259consumer frustrations, even outside of streaming itself. Shifts in the1260economics of sports, such as the dispute between Altice-owned Optimum1261cable and the MSG Networks channel, are downstream of cord-cutting and1262the rise of online video, as the media deals that have been the1263backbone of the industry for many years need to be re-thought and1264renegotiated. That dispute is now resolved, but the Attorneys General1265of New York, New Jersey, and Connecticut got involved, with New York1266Attorney General Letitia James noting that ``New York sports fans are1267being put in the penalty box, forced to shell out their hard-earned1268money for television channels they cannot even watch.'' \1\ Fan1269frustration in this area is particularly acute because many games that1270were once available on free-over-the-air broadcast are moving to paid1271streaming services. It should not be lost in this discussion that1272millions of viewers still primarily watch TV through broadcast, cable,1273and satellite-older viewers in particular, who may have lifelong1274attachments to particular teams, whose games are now a puzzle for them1275to find. And, even with the rise of streaming, sports like Women's1276College Basketball are setting viewership records on traditional pay1277TV. These viewers should not be left behind.1278---------------------------------------------------------------------------1279    \1\ Ariel Zilber, NY, NJ, and Connecticut AGs Hit Optimum With1280Ultimatum as MSG Blackout Frustrates Customers, NY Post (February 6,12812025), https://nypost.com/2025/02/06/business/new-york-new-jersey-and-1282connecticut-ags-demand-optimum-lift-msg-black out.1283---------------------------------------------------------------------------1284    It's also important to understand that the current market structure1285is not a consequence of a free market, but rather the result of decades1286of regulatory arbitrage and market power exploitation. Regional Sports1287Networks (RSNs) emerged not from natural market evolution but as a way1288for cable operators to evade program access rules. Comcast created the1289first RSN in Philadelphia specifically to exploit the ``terrestrial1290loophole'' by delivering programming terrestrially rather than by1291satellite, thus avoiding Federal regulations.1292    The following years saw a series of power plays involving major1293cable companies, RSNs, teams, and leagues, where sports programming was1294used as a competitive cudgel, and programming that was once available1295via broadcast channels shifted increasingly to RSNs. When streaming1296services gained sufficient audience share, leagues found they could1297leverage new deep-pocketed bidders like Amazon against cable companies,1298extracting even higher prices while gaining more flexibility for their1299own streaming offerings. This is still going on, but cord-cutting has1300significantly reduced the subscribers to, and hence the leverage of,1301cable companies, and the cable-based RSN model is collapsing.1302    Today, rather than streaming providing a pathway for local teams to1303reach local fans, it has become part of a system of dueling industries1304in which viewers and smaller teams often suffer. Some of this is1305growing pains. Streaming still offers more opportunities for business1306models and ways of delivering sports programming than broadcast or1307cable, and the lack of a natural monopoly on last-mile delivery--1308provided broadband ISPs remain open--reduces a major barrier to entry.1309But some of the fan frustration, which is so acute as to result in1310today's hearing, is the result of a regulatory system that led to cable1311bundles and bills to become inflated to the point of unsustainability.13121313                            Fan Frustrations13141315    Tracking the issues that consumers face nationally and in specific1316local markets, particularly outside of major media markets like New1317York and Los Angeles, can be as complex as a multi-year sports media1318deal, but an overview might provide a sense of the changing landscape.1319    Of the major leagues, the NFL long had the most straightforward TV1320setup. Most games were free on over-the-air channels on Sunday, with a1321few on cable (Monday Night Football). But there have been recent1322changes that test viewers' patience. The biggest change came in 2022,1323when Thursday Night Football (TNF) moved exclusively to Amazon Prime1324Video on a $1 billion/year deal. Suddenly, a game that had been on1325network TV (and simulcast in previous years on NFL Network/Amazon) was1326now only on a streaming app for most of the country. This caused1327massive confusion. Many fans, especially older ones, struggled to1328figure out how to watch. Amazon Prime requires either a smart TV app, a1329streaming device, or watching on a computer or tablet-like with other1330shifts to streaming, potentially requiring new hardware purchases, as1331well as signing up for a new service. This year's Steelers/Ravens1332playoff game was an Amazon exclusive, and many viewers were simply1333unable to figure out how to watch it.1334    The NFL launched its own service, NFL+ (though limited to mobile1335streaming of local games), and in 2023 it moved the NFL Sunday Ticket1336out-of-market package from DirecTV satellite to a streaming platform1337(YouTube and YouTube TV). This was a huge shift after nearly 30 years1338with DirecTV. This required dedicated out-of-market fans to adapt to a1339new system in 2024--either subscribing to YouTube TV or buying Sunday1340Ticket via YouTube's Primetime Channels, at a hefty price (around $300-1341$400 for the season). Some long-time Sunday Ticket subscribers without1342robust Internet access were concerned about relying on streaming.1343    MLB fans have faced significant viewing hurdles in recent years.1344One major issue is exclusive streaming broadcasts. In 2022, MLB began a1345deal with Apple TV+ to stream Friday night games exclusively, with some1346Sunday games variously on Peacock, then The Roku Channel. These games1347were not shown on local TV or regional sports networks (RSNs). While1348Apple initially made some games free, viewers (especially older, less1349tech-savvy fans) still struggled with the new setup.1350    MLB's longstanding local blackout rules continued to frustrate1351fans. Subscribers to MLB.TV cannot watch their home team's games live1352due to exclusivity deals with RSNs. This leads to absurd scenarios--for1353example, parts of North Carolina fall in the Cincinnati Reds' claimed1354territory (hundreds of miles away), so fans there are blacked out on1355MLB.TV. Commissioner Rob Manfred acknowledged in 2022, ``we hate1356blackouts as much as fans do,'' \2\ but said the league's hands were1357tied by broadcast contracts. The problem became more glaring as cord-1358cutting increased. Several major streaming cable alternatives (YouTube1359TV, Hulu + Live, etc.) dropped RSNs like Bally Sports due to high fees,1360leaving cord-cutters with no legal way to watch local baseball.1361---------------------------------------------------------------------------1362    \2\ Tim Kelly, Rob Manfred: `We Hate Blackouts As Much as Fans1363Do,'' Audacity (June 30, 2022), https://www.audacy.com/1080thefan/1364sports/mlb/rob-manfred-we-hate-blackouts-as-much-as-fans-do1365---------------------------------------------------------------------------1366    The collapse of the RSN model was dramatically illustrated when1367Diamond Sports Group (owner of Bally Sports networks) filed for1368bankruptcy. In May 2023, after Bally failed to pay the San Diego1369Padres' rights fees, MLB seized control of Padres broadcasts mid-1370season. Practically overnight, Padres fans had to switch to new1371channels and streaming offerings run by MLB.1372    Similar brinkmanship occurred elsewhere: the Arizona Diamondbacks1373had their Bally Sports contract terminated and moved to an MLB-run1374service mid-2023.1375    MLB's Rob Manfred even cited the Padres situation as proof that1376``there were tens of thousands of people who wanted to pay to watch1377baseball'' once blackouts were lifted. He has since made ending local1378blackouts ``business objective No. 1,'' saying, ``We need to be out of1379the business of blackouts. . .telling people who want to watch games1380that we won't sell them to you.'' \3\ But this vision has not yet come1381to pass, and fans in many markets continue to face a patchwork of1382services and even mid-season broadcast shake-ups that make following1383their team far more complex than it used to be.1384---------------------------------------------------------------------------1385    \3\ Michael S. Schmidt, A Q&A With Rob Manfred, NY Times (April 6,13862025), https://www.nytimes.com/2025/04/06/briefing/rob-manfred-1387interview-baseball.html1388---------------------------------------------------------------------------1389    NBA fans encountered many of the same viewing headaches. While the1390NBA didn't put regular-season games on new streaming-only platforms at1391the national level (its national games stayed on ESPN/ABC and Turner's1392TNT), local broadcast issues and RSN fragmentation hit hard. Numerous1393NBA teams are shown on Bally Sports RSNs, so when services like YouTube1394TV and Hulu Live dropped Bally channels (in 2020-21), those teams1395effectively vanished from streaming for many viewers. For example, a1396fan of the Phoenix Suns or Miami Heat who cut the cord had no streaming1397bundle carrying Bally Sports Arizona or Sun. By 2022, the only option1398was often to switch to DirecTV Stream or Fubo (which did carry many1399Bally RSNs) or pay for Bally's own standalone app at $20/month: an1400expensive ask on top of other services. Many viewers resorted to VPNs1401and NBA League Pass (meant for out-of-market games) to bypass local1402blackouts. To follow a team fully, an NBA fan might need a pay TV1403bundle (for local RSN and national channels), plus NBA League Pass for1404out-of-market or if you live away from your team, and even then League1405Pass is blacked out for local games and certain national broadcasts.1406During the 2023 playoffs, some first-round games aired on NBA TV (a1407lesser-distributed channel), with fans without that channel being1408caught off guard that a playoff game wasn't available.1409    The NHL's viewing experience also became more convoluted from 20221410onward, owing to a new TV deal and the same RSN tumult affecting other1411leagues. In the 2021-2022 season, the NHL switched its U.S. broadcast1412partners to ESPN and Turner Sports, with ESPN+ streaming folded in.1413That meant a slate of games each week was exclusive to streaming on1414ESPN+ (and Hulu) instead of any TV channel. Fans quickly noticed that1415if their team's game was one of those exclusives, a cable subscription1416alone was no longer enough: they needed an ESPN+ account and a1417compatible smart TV or device. More broadly, regional blackouts1418remained a sore point. Even when ESPN+ streams most out-of-market1419games, local team games are blacked out on the app to protect RSNs,1420unless the game is carried nationally. An NHL fan blog argued in 20231421that ``regional blackouts have crippled the NHL's reach,'' \4\ noting1422that the league's national TV ratings dropped in the second year of the1423new deal.1424---------------------------------------------------------------------------1425    \4\ An Honest Review of the NHL's Broadcasts in 2023, Stanley Cup1426of Chowder (February 3, 2023), https://www.stanleycupofchowder.com/14272023/2/3/23581957/national-hockey-league-broadcasts-boston-bruins-nhl-1428ja ck-edwards-nesn-bally-sports-gary-bettman1429---------------------------------------------------------------------------1430    Basketball and hockey fans in several cities were also caught in1431the crossfire of RSN carriage disputes. The most notorious case was in1432Denver: from late 2019 until late 2023, Comcast (the area's largest1433cable provider) did not carry Altitude Sports, the RSN for the Colorado1434Avalanche and Denver Nuggets. This stalemate lasted an astounding 41435plus years, during which most Comcast subscribers simply couldn't watch1436the Avalanche (NHL) or Nuggets (NBA) at home. As the Avalanche went on1437to win the 2022 Stanley Cup and the Nuggets the 2023 NBA title, a1438generation of local fans missed seeing it live on TV. Many resorted to1439unconventional streaming services (some likely illegal) to follow their1440teams. The impasse eventually ended in October 2023, when Altitude and1441Comcast settled.1442    Outside the ``Big Four'' sports similar broadcasting and streaming1443controversies hit American sports. Major League Soccer (MLS) made a1444groundbreaking media rights move in 2023, signing a 10-year deal with1445Apple TV+ to stream every MLS game via the new MLS Season Pass. This1446meant no more local TV broadcasts at all--a fan must use the Apple TV1447app (on a smart TV, computer, or device) to watch their team's games,1448aside from a few matches simulcast on Fox. On one hand, the MLS/Apple1449deal eliminated blackouts and offered a consistent platform. On the1450other, it erected a paywall ($99/year, or $79 for Apple+ subscribers)1451for a product that many casual fans used to watch for free on local1452channels or regional sports networks. The transition was bumpy. Early1453on, some long-time fans struggled with the tech, especially if they1454didn't own Apple devices. (Notably, the Apple TV app wasn't available1455on Android phones until mid-2023, though it did work on non-Apple smart1456TVs).1457    College sports also saw streaming-exclusive games (and realignment1458chaos) impact fans. Notre Dame football, for example, put one home game1459per year exclusively on Peacock in 2021 and 2022, angering fans1460unaccustomed to paying to see Notre Dame play Toledo or UNLV. The Big1461Ten's new TV deal in 2023 will likewise send some conference football1462games to Peacock-only starting in fall 2024, meaning fans of certain1463schools must get Peacock for those contests. Meanwhile, conference1464media rights shuffles (like the Pac-12's collapse in 2023) were driven1465by TV money and left fans unsure where their team's games would air in1466the future.1467    Personally, I recently faced these frustrations. Two weeks ago, a1468Cubs/Phillies game was mistakenly blacked out for me in DC, and for1469others as I found out by searching social media. This game was not1470carried on broadcast or multichannel TV locally or nationally and1471should not have been blacked out, but MLB's customer service was1472unresponsive through their app. Eventually, I resolved it via MLB1473support on social media, providing them with my IP address and zip code1474so they could manually override MLB's mistake. This is clearly not a1475sustainable solution. Just last week, more ``correctly'' blacked out1476from a Phillies/Nationals game which was available locally--but not on1477my multichannel service of choice, YouTube TV, which does not carry1478Mid-Atlantic Sports Network (MASN)--I was told by the same MLB customer1479service social media account that they would nonetheless lift the1480blackout. But after a half hour of trying, and claiming to have lifted1481the blackout, they in the end just referred me back to a webpage1482outlining MLB blackout policies. At least I was able to listen to the1483game on the radio. But even if I had MASN, I'd only have the Nationals'1484broadcast. No offense to the Nat's fine broadcast team, the Phillies'1485John Kruk is the funniest color commentator in baseball. To be sure,1486services like MASN+ and Phillies.TV are a step in the right direction1487for giving in-market fans the ability to watch local games without an1488MVPD, but they are still geographically limited, and do not provide1489access to nationally-carried games, including playoffs, which are still1490black out of MLB.TV.14911492                             A Path Forward14931494    Sports are an entertainment product, to be sure. But they have1495outsized civic, cultural, and economic importance. The role of the NFL1496in particular cannot be understated. Every year, 9 of the 10 most1497highly-rated TV programs are NFL games, and the Super Bowl is the most1498watched event in the United States. Teams are subsidized by taxpayers1499through stadiums, special tax districts, and other deals, and major1500leagues like the NFL, MLB, NBA, and NHL are given special exemptions1501from antitrust laws by the Sports Broadcasting Act--enhancing their1502market power, and distorting the market in other ways--for example, by1503only applying to the ``Big Four'' sports. Sorry, soccer. Baseball's1504antitrust exemption is even broader, and it wasn't even granted by1505Congress. The Supreme Court devised it in 1922 in Federal Baseball Club1506v. National League, 259 U.S. 200 (1922), and reaffirmed it in Toolson1507v. New York Yankees, 346 U.S. 356 (1953), and in Flood v. Kuhn, 4071508U.S. 258 (1972). Then-judge Neal Gorsuch described the Court's1509treatment of baseball as a ``precedential island[]. . .surrounded by a1510sea of contrary law.'' Direct Marketing Ass'n v. Brohl, 814 F. 3d 11291511(10th Cir. 2016). Maybe that is one vote to overturn it at the Supreme1512Court.1513    Streaming is no longer an afterthought, and policymakers, content1514creators, tech platforms, and sports leagues need to take steps to1515ensure that shifts in the media, technology, and sports landscapes1516benefit viewers, and lead to cheaper and more convenient options.1517Taxpayer-funded sports and teams should be required to clearly and1518consistently communicate to fans, ahead of time, where games will be1519available, and commit to making games available free of charge in their1520local market-either by continuing on broadcast, or streaming them for1521free. There is no reason for public money to go to private sports1522organizations unless there is a clear and tangible public benefit.1523Free, ad-supported broadcast or streaming of games in local markets1524remains a viable business model.1525    Leagues and policymakers must recognize that easy, affordable1526access to sports is crucial for the future of sports viewership.1527Policies prioritizing immediate profits through exclusive deals1528threaten to alienate existing fans and fail to attract younger viewers1529who no longer stumble upon sports while casually flipping through TV1530channels, and who often cannot afford the high price that tickets now1531command. Instead, leagues should simplify viewing access, eliminate1532outdated blackout policies, and offer reasonably priced, easy-to-use1533direct-to-consumer streaming options. While these measures may seem1534financially risky initially, they can be forward-thinking investments1535in the growth and sustainability of fanbases.1536    This hearing is evidence that the streaming era has introduced1537complexity, new costs, and consumer confusion to sports viewing. Yet,1538thoughtful policy interventions can create a fair, affordable, and1539sustainable environment, benefiting consumers, fans, and sports leagues1540alike. Congress should consider legislation like Congressman Ryan and1541Senator Murphy's recent Stop Sports Blackouts Act, mandating refunds1542for channels lost due to disputes, require taxpayer-funded sports1543entities to stream games for free locally, and support initiatives1544ending local market blackouts entirely. Other model legislation is the1545longstanding FANS Act proposal, championed by Senator Blumenthal and1546the late Senator McCain, that would have put public interest1547conditions, such as a prohibition on blackouts stemming from1548retransmission consent disputes during marquee events, on continuing1549sports leagues' antitrust exemption. Senator Baldwin's ``Go Pack Go''1550Act is another promising response that would address Wisconsinites'1551frustrations with arbitrary market boundaries and confusing media1552deals. Colleges and universities should be permitted to negotiate their1553own media deals, particularly in their local markets, instead of having1554to go through the NCAA. Accessibility of games is also an issue that1555could benefit from increased attention from the state and local1556policymakers who more directly interact with teams, their owners, and1557the leagues.1558    More broadly, it would benefit everyone in the streaming market to1559focus more on providing a good viewer experience, rather than on1560customer lock-in. While more competition is good, not every content1561producer needs to go direct-to-consumer with yet another video1562streaming app, as opposed to licensing content to the services people1563already use. Online video services should recognize that viewers often1564mix and match services, and work to facilitate instead of blocking1565this. While content and programming bundles are not per se bad, they1566should offer obvious value to subscribers, instead of being ways to get1567them to pay for costly programming they are not interested in. Video1568apps should continue to innovate, but services should bear in mind the1569advantages of consistency, discoverability, and simplicity across1570different apps.1571    Sports in particular show the need for consistency and1572predictability. Leagues should avoid abrupt and radical changes to how1573people watch games, and should avoid overly complex licensing that1574fragments individual sports and even teams across a variety of1575services. While the leagues and teams may balk at what they view as1576leaving money on the table, practices that prioritize short-term gain1577can end up harming the long-term sustainability of professional sports.1578People have other things to watch.1579    The streaming revolution has fundamentally transformed how we1580consume sports content, offering unprecedented flexibility but also1581creating new frustrations. As leagues prioritize lucrative exclusive1582deals across fragmented platforms, fans face rising costs, technical1583hurdles, and confusing blackout restrictions that undermine the very1584accessibility streaming promised to deliver. This calls for an approach1585where leagues, policymakers, and platforms recognize their1586responsibility to fans, particularly given sports' cultural1587significance and the public subsidies many teams receive. Without1588meaningful reform that prioritizes viewer experience over short-term1589profits, including simplified access, reasonable pricing, and1590elimination of outdated blackout policies, sports organizations risk1591alienating existing fans and failing to cultivate the next generation1592of viewers in an increasingly competitive entertainment landscape.1593    While streaming has unlocked new possibilities for sports fans and1594content creators alike, it has also replicated many of the frustrations1595of the old cable model--now spread across a maze of apps,1596subscriptions, and platforms. As the transition continues,1597policymakers, leagues, and platforms must move beyond a mindset of1598exclusive deals and revenue maximization and instead prioritize a1599future where sports remain widely accessible, locally available, and1600simple to find and watch. The public investment in sports demands1601public benefit in return. The path forward should be built around1602transparency, consistency, and fair access for all fans.1603    Thank you for inviting me to testify.16041605    The Chairman. Thank you to each of the witnesses. Let me1606start with a question to the leagues.1607    As I mentioned in my opening statement, Congress passed the1608Sports Broadcasting Act in 1961 to allow leagues to negotiate1609sports media deals on behalf of all teams as opposed to on a1610team by team basis.1611    Congress granted this antitrust exemption with the1612intention of benefiting sports fans. How does the SBA actually1613benefit fans of your sport, whether it is from greater access1614to games or improve revenue sharing, to make for more1615competitive balance or something else entirely?1616    Mr. Gersh. Thank you.1617    As you stated, Chairman, the SBA allows us to pool1618broadcast rights, which has created a fan friendly, market1619efficient practice that has resulted in more output of games as1620opposed to less.1621    One concrete example from Major League Baseball's1622perspective is this pooling allowed us to create MLB Events1623media where all the clubs together pooled their digital media1624rights.1625    That allowed us to innovate and revolutionize the viewing1626experience. We were the first league to be able to stream games1627at all via the internet, first to computers, then to mobile1628devices, eventually right to the TV.1629    So we think that has been a really big benefit of being1630able to take all the resources of the leagues together to1631create a product as opposed to each individual club having to1632manage apps across multiple operating systems and multiple1633devices.1634    It is a hard thing to do on a small basis. You really need1635that economy of scale. So we appreciate the ability to do that.1636    And while, you know, the sports leagues are each comprised1637of 30 or, in some cases, 32 different teams that compete with1638each other on the field, it is important that we act as a1639single operating entity and that is why you are able to have,1640you know, three of us here to have this discussion instead of1641not need to.1642    Thank you.1643    Mr. Koenig. Chairman, we think that we do honor the1644intention of the Sports Broadcasting Act and that there is a1645public service in the way we have organized our media rights.1646    As I mentioned, in our most recent national deals, which is1647a product of what the Sports Broadcasting Act was intended to1648do on a national basis, we were able to license a record number1649of over-the-air telecasts--free over-the-air telecasts.1650    That benefits all teams in terms of exposure because the1651games are available in every market. But it also by able--by1652being able to license games on a league wide national basis the1653revenue is shared equally by each teams.1654    So the point you made about revenue sharing, all teams1655benefit from those national distribution deals equally.1656    Also, to echo what Mr. Gersh said, we are able to innovate1657by doing things that require scale at the league level.1658    Our League Pass product, which is our out-of-market1659subscription service, offers fans approximately 14 different1660feeds of every game--different camera angles, different1661languages, different stats feeds for analytics, fantasy feeds,1662celebrity co-viewing experiences--and those things are really1663only achievable by pooling and doing things on a collective1664basis.1665    Mr. Proper. It is a great question, Senator, and I think1666that I would echo much of what Mr. Gersh and Mr. Koenig said.1667    The one thing that I would add of substance in terms of1668what the Sports Broadcasting Act was intended to do was it was1669intended to make games available to fans with greater1670accessibility at a lesser cost.1671    That is exactly what it does. If you had, in our case, 321672teams or 25 in the U.S. out there negotiating their own deals1673on every television market you would have a complete1674fragmentation of their rights.1675    A fan who wanted to watch all of the games would be buying1676from so many different packages, which the costs would be1677through the roof.1678    What this has allowed us to do--the respective leagues--is1679to provide the greatest access to fans in the most affordable1680way possible and that is, I think, the main intention of the1681Broadcast Act, where it has been extremely successful.1682    The Chairman. So the FCC's cable era regulations set1683regulatory conditions including rules around operating within a1684designated market area as well as syndicated and exclusivity1685rules, which can lead to blackouts.1686    Streaming platforms are not bound by these rules, but1687blackouts still take place on streaming platforms. Why is that1688the case and do league specifically require streaming platforms1689to blackout games for out-of-market fans?1690    Mr. Gersh. Thank you.1691    I think the result of the question you are asking is the1692way our rights are currently split up between the league and1693the clubs at the current time.1694    Each club has the right to distribute throughout their1695entire home television territory so when they do their deals in1696their market they are on cable TV that we, the league, cannot1697then offer the games in their own market. So for our streaming1698product we blackout in Houston because the Astros are1699exploiting the rights there.1700    However, as I mentioned in my testimony, also we now are at1701the moment where 29 of our clubs have their own direct to1702consumer service.1703    So you can now in pretty much every territory if you want1704to watch the games via streaming you can go buy that service1705and if you want to watch all the other games out of market you1706can buy MLB.tv and then those two services complement each1707other so that it does cover the whole landscape.1708    So it means less of a legislative issue and just the way1709that our rights are currently divided between the league and1710the club.1711    The Chairman. Mr. Koenig.1712    Mr. Koenig. Similarly with the NBA, we have three different1713types of game distribution packages. We have a national1714package--national packages, local packages, and out-of-market,1715and a fan anywhere in the country can access every game--every1716game played by his or her favorite team or any other team in1717the league through a subscription to one or more of these1718packages.1719    That is that is--that is the business reality. There is no1720mandate that games be blacked out. National games, for example,1721are not blacked out.1722    But a fan in any market, in Houston, for example, can buy1723the Rockets games locally from the RSN that is operated by the1724Astros and the Rockets collectively, and they can watch games1725of the other teams through buying our League Pass out-of-market1726package and, obviously, can access the national games.1727    I would say that on the local front, because of some of the1728issues facing cable with cord cutting, the repositioning of1729regional sports networks, and just carriage disputes, more and1730more of our teams--21 of our 29 domestic teams--have games on1731broadcast television. It is almost the reverse.1732    I remember in 1992 when the Cable Act was passed and there1733was a study about migration from broadcast to cable--you1734actually referred to that in your opening statement--and now1735there seems to be a trend. We had last--this season 570 games1736on broadcast television, the most in 20 years.1737    And so we are very concerned with accessibility. But any1738fan can subscribe to services or get them for free in the case1739of many local and national telecasts to any game that he or she1740wants.1741    The Chairman. Mr. Proper.1742    Mr. Proper. The NHL is similarly set up as the other two1743leagues. We have local rights, we have national rights, and we1744have out-of-market rights.1745    The local rights in terms of being blacked out is1746structured exactly the same and you have to think of it as--and1747if you live in the local market you get the benefit of getting1748your teams without having to buy the out-of-market package or1749anything like that.1750    You get that benefit usually. Depending on the circumstance1751most of the games are available on either broadcast or major1752cable television.1753    That being said, if I am being completely candid, as Mr.1754Bergmayer said about Commissioner Manfred everybody is looking1755at the future of the models right now.1756    The models are in a state of flux, and whether streaming1757results in blackouts or blackouts not happening in the future1758is something that may be addressed by the leagues over the next1759five to 10 years.1760    But it is at this point the current model that has worked1761and has worked very well. But as we continue to have flux in1762the system we are going to have to continue to evaluate.1763    The Chairman. Thank you.1764    Senator Klobuchar.17651766               STATEMENT OF HON. AMY KLOBUCHAR,1767                 U.S. SENATOR FROM MINNESOTA17681769    Senator Klobuchar. Thank you very much, Mr. Chairman, and1770thanks to Ranking Member Cantwell for putting together this1771important hearing.1772    As some of you know, my dad was a sports writer and a1773general columnist, and he wrote 23 books including the1774authorized biography of Fran Tarkington. But he wrote one in17751977 that we will never forget because it is relevant today,1776and that is ``Will the Vikings Ever Win the Super Bowl?''--that1777was the name of it.1778    But I care a lot about sports. I find it----1779    The Chairman. And the answer is?1780    Senator Klobuchar. Of course they will, Senator Cruz.1781    I care a lot about sports. I care a lot about how sports1782brings us together in terms of our local communities. It made a1783huge difference for our city, for the City of Minneapolis, in1784the last few years after some difficult times.1785    And so I just wanted to start with this, with the local1786broadcasting issue, and I have learned--I have gotten all the1787streaming down. I will get the Timberwolves tonight, Mr.1788Koenig, whatever they are on.1789    But I do want to continue to have strong local broadcasting1790for many reasons because I think it also brings our communities1791together.1792    And how do you plan--I guess I would start with you, Mr.1793Proper, since you had the wherewithal to go to college in1794Minnesota--how do you plan on continuing to leverage local1795broadcasting to reach NHL fans like wild fans?1796    Mr. Proper. Thank you, Senator, and thank you for1797acknowledging the Minnesota roots. I did not realize it would1798work to my benefit.1799    [Laughter.]1800    Mr. Proper. So in the NHL we are currently still operating1801under the RSN system in many markets. So that is the cable1802system where the RSNs, but as everybody is--sorry, regional1803sports networks.1804    But as everybody has talked about, those continue to lose1805subs and as a result they are going to a D to C model that1806complements their cable distribution.1807    In addition, our teams have looked carefully, as I1808mentioned briefly, at broadcast and a number of our teams are1809on full broadcast networks in the local markets. Other teams--1810we have one team that has gone on a completely free--actually1811two--completely free digital distribution.1812    So that is basically everybody can get it for free if they1813have Internet access, and everybody has some form of D to C,1814meaning direct to consumer model that--as a pay model except1815the two that have it for free that is available over the1816internet.1817    So what we have done is through our various markets1818attempted to try and test and move forward with every different1819type of model that currently exists. We expect that we will get1820a much better sense of what the future holds and what really1821works as we move forward.1822    But we have teams in every market that are doing different1823things as we try to figure out exactly what the future will be.1824    What I can tell you is, hopefully, what gives you some1825comfort is the most important thing to us in any of the leagues1826is growth, which is all focused on accessibility and1827affordability.1828    Senator Klobuchar. Mr. Gersh, same question.1829    Mr. Gersh. Thank you. It is a great question.1830    We are, obviously, very focused on making sure local fans1831can watch their games, and as we have all talked about here1832today the Pay TV industry in general and the RSNs in particular1833that have traditionally been the way that fans are able to1834watch their local games have been suffering massive disruption.1835    We saw that coming and we wanted to make sure that our fans1836never were penalized for what was going on in the marketplace.1837So we built up the infrastructure ourselves to be able to1838produce and distribute games.1839    And so for the Twins, for example, when their RSN had1840financial difficulties, they were in bankruptcy, they had come1841out----1842    Senator Klobuchar. I remember the whole thing.1843    Mr. Gersh. So we took over the production and distribution1844of those and we essentially follow a three-pronged strategy,1845which is, one, to get, you know, as much distribution as we can1846still from the Pay TV industry and so those games are now on,1847you know, Comcast and DIRECTV.1848    We also distribute a package of those games of 10 games1849over the air so fans can watch some games if they do not want1850to subscribe to anything, and it gives fans a promotional1851ability to see where the games will be on.1852    And then we offer the direct to consumer package so anyone1853who does want to watch all the games can sign up directly to do1854so.1855    Senator Klobuchar. OK. And I will ask you that question in1856writing, Mr. Koenig, because I did want to ask you and I will1857follow up on some of these local issues. I just think it is so1858important.1859    Last July, as you noted, WNBA--we love the Lynx--signed1860this historic deal $2.2 billion, although we note the men's1861deal is $76 billion, and you noted that there could be some1862add-ons for more.1863    Could you talk about that? Just because I think, like, they1864are such a fast-moving, popular sport that putting it in one1865slice of time for the women seems like, well, this is historic.1866    What was it like a few years ago, I wonder, just this1867change over in the valuation?1868    Mr. Gersh. The change in--the market, just like the rise in1869popularity exploded in the last couple of years, Senator, you1870are right.1871    What I would say is we are mindful of the growing1872popularity of the WNBA. So in the three deals that we did last1873year, even though they were record numbers in terms of the1874finances that you referred to, we put in certain provisions to1875provide for upside in those deals.1876    So, for example, there is a revenue-sharing component that1877if advertising revenues exceed a certain level in each of the1878deals the WNBA benefits incrementally.1879    There is also a provision that after 3 years there is1880essentially a reset, a relook at the value in those deals1881because they are long term, and if the league is continuing to1882take off we would like another chance to negotiate.1883    And the third thing with the other--just to answer your1884question, we have other deals that we can do with other1885broadcasters and other, you know----1886    Senator Klobuchar. Thank you for bringing up the local.1887Yes, I hope you continue that.1888    I just want to--I am going to put this on the record,1889Chair, because I know we are out of time.1890    But for you, Mr. Bergmayer, just I think it is important to1891focus on, first of all, that fans can get their sports.1892    But when you look at the cost, say, the NFL Sunday ticket,1893YouTube TV, ESPN+, Netflix, Amazon Prime Video, Peacock, a1894single season $850 for the 2024 season alone, which is really1895hard when it used to be on local broadcast.1896    And also just some of the Disney, Warner, Fox Sports deal1897that was called off due to antitrust concerns and, you know, I1898want fans to stream their sports but we also want to make sure1899that consumers benefit from low prices and innovation comes1900from competition.1901    So I look forward to getting your answers in writing. I am1902sorry. I am out of time. Thank you.1903    The Chairman. Thank you.1904    Senator Blackburn.19051906              STATEMENT OF HON. MARSHA BLACKBURN,1907                  U.S. SENATOR FROM TENNESSEE19081909    Senator Blackburn. Thank you, Mr. Chairman. And thank you1910to each of you for being here.1911    In Tennessee we love our sports teams also.1912    And, Mr. Koenig, I want to come to you because I have1913through the years looked at the NBA's relationship with1914oppressive regimes around the globe and, of course, you all1915have had quite a cozy relationship with the CCP, and we know1916how they censor.1917    And going back to 2019 with Daryl Morey's tweet in support1918of the Hong Kong freedom fighters, and that resulted in the1919suspension of the NBA broadcast on their state-run media1920channels.1921    And in recent years it appears that you all have patched1922that relationship up, which means there had to be some sort of1923deal that was there and it must have been quite a deal.1924    So since we are talking about broadcast rights and what1925they are worth, why don't you tell me what the broadcast rights1926in China are worth and how much NBA owners have invested in1927China?1928    Mr. Koenig. Thank you, Senator.1929    The NBA does have a very long history of distributing our1930games and content in China for more than 30 years.1931    Senator Blackburn. No, I am not asking about the length of1932time you have been in China. I am asking what are the media1933rights worth?1934    You are the President of Global Content and Media1935Distribution. So what are those rights worth and how much have1936the NBA owners invested in China?1937    Mr. Koenig. The NBA does not comment publicly on the1938financial terms of our relationships in the U.S. or abroad but1939I can comment that you are accurate that in light of the tweet1940that Daryl Morey made in 2019----1941    Senator Blackburn. You had to cut a deal?1942    Mr. Koenig. No, we did not cut a deal.1943    Senator Blackburn. Oh, you did not?1944    Mr. Koenig. No, we did not cut a deal. What happened was1945the games were taken off of CCTV. You are right. The games1946continued to air on Tencent and other distribution outlets in1947China, and then after more than a year----1948    Senator Blackburn. So did you make any concessions on free1949speech?1950    Mr. Koenig. No. To the contrary----1951    Senator Blackburn. None at all? Because the estimates are1952that these media rights are worth hundreds of millions of1953dollars to you all and that NBA team owners have invested as1954much as $10 billion, and I think some clarity around those1955numbers would be important.1956    The other thing that we look at is human rights and we look1957at how the NBA has punished players who have spoken out against1958human rights abusers in China, Enes Kanter Freedom, one1959specifically.1960    So can you commit to me that in every deal the NBA makes1961around the globe that the league is upholding human rights and1962that the league is upholding freedom of speech and they are1963upholding the American ideals of freedom?1964    Can you make that commitment?1965    Mr. Koenig. Senator, I can certainly confirm that one of1966the NBA's most important values is freedom of speech. In fact,1967the example you cited before of Daryl Morey he was not1968disciplined or censored in any way in light of the comments1969that he made, and that--and you are right that that comment may1970have led to the lack of coverage by CCTV and other things.1971    But no, we very much value freedom of speech and that is1972something that I can confirm and it is something that is one of1973our----1974    Senator Blackburn. What about your actions in Rwanda? You1975are the global president. We ought to have an answer on that1976one.1977    Mr. Proper, let me come to you, if you do not mind.1978    One of the things that we are concerned about--and Senator1979Klobuchar touched on this--is pirated broadcasts that are1980available, and the Predators are mighty popular in Tennessee.1981People love going to those games.1982    And as we were looking at this, I think it is $28 billion1983in potential revenue loss that is there from pirated. So tell1984me what you are doing to combat the rise of these illegal1985sports streaming because, you know, the players are not1986benefiting from that?1987    Mr. Proper. Thank you, Senator. It is a great question and1988it is something that everybody struggles with.1989    The fact of the matter is we have an outside service that1990helps us to track pirated broadcasts. We work with our1991broadcast partners. We have gotten orders of court that have1992allowed us in certain markets to stop these pirated broadcasts.1993    But at the end of the day, many of them come from foreign1994jurisdictions. They are what we affectionately refer to as1995whack-a-mole. You knock one down and two more pop up.1996    But you can rest assure that everybody is trying to do the1997best they can worldwide. But any tools that become available to1998us we will all use because it is a definite drag on our1999industry.2000    Senator Blackburn. Thank you. Thank you, Mr. Chairman.2001    The Chairman. Thank you.2002    Senator Lujan.20032004               STATEMENT OF HON. BEN RAY LUJAN,2005                 U.S. SENATOR FROM NEW MEXICO20062007    Senator Lujan. Mr. Chairman, thank you very much.2008    To all of our witnesses that are here, thank you for being2009here.2010    Now, I recognize this hearing was convened to talk about2011sports broadcasting and brought the experts together today.2012    However, I want to ask some specific questions about an2013issue that is currently going on, and I just simply cannot2014ignore what President Trump's unlawful executive order that2015attempts to kneecap the Corporation for Public Broadcasting and2016its funding of PBS and NPR.2017    Now, let me be clear. The President's actions show a2018callous disregard for the law. Congress passed a law in 19672019that established the Corporation for Public Broadcasting's2020independence.2021    Here are a couple facts. CPB is a nonprofit private2022corporation. Congress formed CPB this way to insulate it from2023government control.2024    The board members are not officers of the United States.2025Board members and their decisions cannot be controlled by the2026government. Board members do not serve at the pleasure of the2027President.2028    CPB provides critical operational support for nearly 1,5002029locally owned and operated public television and radio stations2030that reach virtually every household in the country.2031    In 2024 alone, CPB provided nearly $6 million in total2032support to three public TV stations and 12 public stations in2033New Mexico alone.2034    Yet, despite all the facts the President has plowed ahead2035with his attacks on the corporation. As a result, he and his2036administration have threatened access to local news, children's2037educational programming, and emergency alerts that broadcasters2038provide to communities.2039    Now, Mr. Bergmayer, you heard I am concerned about the2040Trump administration's attacks on public media and defunding2041NPR and PBS. Can you explain why NPR and PBS are important?2042    Mr. Bergmayer. Yes, Senator. Thanks for the question.2043    Of course, as we discussed today, people should be able to2044access their local teams but, obviously, important local news,2045commercial-free children's programming, and emergency alerts2046are important, too.2047    Public broadcasting provides this and CPB funding is2048important for stations in rural areas in particular. These2049areas typically have less broadband coverage to households and2050people can tune into the radio in places where there is no2051wireless coverage at all.2052    And especially as commercial stations are often struggling2053as local ad dollars shift to online platforms like Facebook I2054think it really underscores the importance of other models to2055provide the kinds of information that these stations provide.2056    Senator Lujan. If Congress allows this to happen are people2057going to have the same access to local news, educational2058programming, and emergency alerts?2059    Mr. Bergmayer. I think not. I think in particular there is2060going to be many news deserts if these stations shut down.2061    Senator Lujan. Now, Mr. Bergmayer, the public radio network2062reaches about 99 percent of the American population. This makes2063it a critical backbone for the Nation's emergency alert system.2064    The majority of public radio stations in New Mexico receive2065CPB grants and support 30 to 50 percent of their budgets. Some2066of these are also tribal stations and serve as links to2067isolated tribal communities back home.2068    Now, one of the questions that I have here is, if the Trump2069administration is successful in cutting funding to these public2070stations will the stations exist?2071    And I would note that study after study showed New Mexico2072and Alaska have something in common in this particular space2073with a number of stations that we benefit from with these2074repeaters--the investments that are made by these entities.2075    We just had some of the most horrific fires in New Mexico's2076history. As a matter of fact, it was a local station that was2077able to partner with some of these. It is an AM radio station.2078    I appreciate what Chair Cruz is doing to make sure AM radio2079is going to stay in every car in America as well because it was2080the AM radio that was warning the citizens that they needed to2081move.2082    Signals were down. There was no electricity. Phones were2083not working, nothing. The only thing that worked were these2084repeaters and what was happening with AM as well. What happens2085to the ability for these isolated communities to receive alerts2086if all this goes away?2087    Mr. Bergmayer. Senator, you are right, the coverage of2088radio is hard to beat and although funding for public media is2089only about .01 percent of Federal spending for particular2090stations, particularly in rural areas, it is a significant2091portion of their budget.2092    Senator Lujan. So as my colleagues are looking to identify2093funding streams for moving and advancing President Trump's tax2094policy, my question comes back to the major league teams in2095America.2096    We are having this discussion about how constituents across2097the country can get access to games. There is more and more2098deals being put together with streaming where people have to2099cough up more bucks out of their pocket to be able to get the2100stream.2101    There is tax policy, if I am not mistaken, that all of you2102benefit from from the United States. Am I correct in that, Mr.2103Gersh?2104    Mr. Gersh. I am not sure exactly what tax policy you are2105referring to.2106    Senator Lujan. Mr. Koenig?2107    Mr. Koenig. Neither am I.2108    Mr. Proper. I am also not aware.2109    Senator Lujan. That is good. So to my colleagues, they do2110not even know the tax deferment policy that they get advantages2111when they are making--when they are investing in stadiums with2112the revenue stream for the leagues. There might be another pay2113for that you all can find if they do not even know what this2114is.2115    The reason I was asking this question is if that tax policy2116is going to continue people should be able to get to watch2117games. My constituents and I love our favorite teams and love2118enjoying them and watching teams.2119    I have a buddy now that is collecting cards at an2120incredible pace and he has opened up a new business because of2121the success of players and the support of them with their2122marketing and things of that nature.2123    I am surprised that you are not familiar with that. I will2124do my due diligence to be able to get each of you a report from2125the Congressional Research Service that explains the tax policy2126that benefits major league sporting teams in America.2127    I yield, Mr. Chairman. Thank you.2128    The Chairman. Senator Schmitt.21292130                STATEMENT OF HON. ERIC SCHMITT,2131                   U.S. SENATOR FROM MISSOURI21322133    Senator Schmitt. Thank you, Mr. Chairman. I am glad we are2134having this hearing.2135    So many things that we talk about in Washington back home2136nobody cares about. But this one actually people do care about2137a lot because they want to be able to watch their favorite2138teams.2139    And I am going to probably limit my questions to Mr. Gersh.2140It is too soon, Mr. Proper, to talk about the NHL, given what2141happened to the Blues with 1.7 seconds left in Winnipeg in game2142seven. It is just too soon so maybe another day.2143    But as we were talking beforehand, as a Cardinals fan and2144somebody who probably has way too much of an emotional reaction2145to a blown save in an April day game, this is what I do.2146    Like, I mean, I cannot live in the political all the time2147so baseball--the Cardinals is ultimately my great distraction2148and we have been really lucky on the radio side----2149    The Chairman. And if you are looking to recruit he swings a2150bat really well.2151    Senator Schmitt. Yes. My time has passed, Mr. Chairman, I2152believe. But, you know, Harry Carey and Jack Buck and Mike2153Shannon, and I still have got the MLB app to just listen to the2154radio games when I am barbecuing for my family outside.2155    I mean, this is just--it is the cadence of the summer. It2156is--the rhythm of the game is something that--it is America's2157pastime and it is--in St. Louis at least it is almost like, you2158know, a civic religion. It is passed down from one generation2159to the next.2160    And I am also--so I am 49 so I am a Gen-Xer, and I feel2161like I have seen all of the phases of all this, right? You have2162got--when I was a kid growing up in the 1980s the only game--2163you know, you could listen on the radio but the only game you2164could maybe pick up was the NBC game of the week with, you2165know, Vin Scully and St. Louis and Joe Garagiola broadcasting2166those games.2167    And then--you know, and there was a time where the thinking2168was the more games you broadcast maybe people would not2169actually go attend the games and, of course, that was not true.2170    And then you get into the regional sports networks. ESPN2171starts broadcasting more games. St. Louis and Kansas City have2172some of the highest ratings when the regional sports networks2173existed, and now we are in this new phase and I am someone that2174would have the MLB app for radio.2175    I would--only during baseball season when I cut the cord2176actually buy the cable subscription, which was really2177expensive, just to see the Cardinal games when I was at home2178and we gravitated--you know, at first I had Sling because they2179carried the Cardinals.2180    Then it went to YouTube TV because they had the Cardinals2181and then they did not have the Cardinals. So it has been a2182journey for a lot of fans. So I guess in the time that we have2183remaining, I just wanted to ask you where is all this headed?2184    Because people want to see the games. The demise of, you2185know, the regional sports networks you have got now--I can--you2186know, I am on Amazon. I can get the Cardinal games on Amazon.2187This is the first year you can do that with the Prime package.2188    Are we headed to a place where the teams have their own2189platforms or maybe that does not work because you do not have2190the scale. But what is--where is this all headed?2191    Because it feels like, especially for baseball, it has been2192a little bit in flux the last couple of years and this is the2193question I get a lot, like, what is going on with all this2194stuff?2195    So in your view, what is happening? Where is this headed?2196    Mr. Gersh. Sure. It is a great question. First of all,2197thank you for your fandom and your continued support. We2198certainly appreciate that.2199    We are at this transitory time in the media ecosystem and2200we are at the point now where the Cardinals, like many other2201clubs, are on their regional sports network and at least there2202is now a direct to consumer service, which in this case is2203FanDuel Sports Net, which you can buy directly from them or2204through Amazon Prime.2205    Where this is going is a great question and I think, as the2206Commissioner has stated, he is looking to get to a more2207national product.2208    I think we would like to see more of our games available2209more broadly, more nationally, and then kind of have one place2210where fans know to go to watch their games that are not being2211broadcast nationally.2212    And so as we look to the next couple of years, our main2213rights deals come up after the 2028 season. That is what we are2214looking to achieve is a place where there is a--whether it is a2215national streaming package or MLB network becomes the home of2216local baseball but where there is one place that you go to know2217where your games are that are not being broadcast nationally.2218    Senator Schmitt. So that would look like something like the2219MLB app. You subscribe and everyone then has access to their2220home market games or--and I guess it would not matter if you2221are traveling to D.C. and I want to watch the Cardinals I am2222not limited by the potential blackout, right?2223    So it is--there is a one-stop shop that MLB actually owns.2224Is that----2225    Mr. Gersh. Yes. Whether MLB----2226    Senator Schmitt. I am not trying to ask you to get too far2227ahead but just curious.2228    Mr. Gersh. Yes. That is certainly one potential outcome. It2229may be the MLB app. It may be that we partner with an Amazon or2230an Apple or a YouTube or one of the other major streaming2231services and they become the home of baseball.2232    But I think the idea is to make it simpler for fans. We do2233understand the fan frustration now. We take that very2234seriously. There is nothing more important to us than making2235sure fans know exactly where to go to watch their game.2236    Senator Schmitt. One final question while I got you. So2237every--I think every sport sort of translates a little bit2238differently to television. I mean, football is sort of just2239like--it works really well on the screen.2240    Hockey, I would argue, in person--a playoff hockey game in2241person is so fast it is hard to--sometimes it does not--you do2242not have to comment--it does not translate on TV. But when you2243are there it is incredible. Baseball is kind of this middle2244ground.2245    With younger people now with the scrolling and how the2246short YouTube clips and all this stuff, baseball is a longer2247form game. I am just curious, how does baseball view appealing2248to younger viewers knowing that their viewing habits are a2249little different?2250    Mr. Gersh. Yes, I think that is a lot of the changes that2251we have made over the past couple years is to, you know, the2252institution: the pitch clock and the restriction on the shift2253and the bigger bases, trying to make more action, and I think2254we have seen the results of that. Ratings have been up.2255Attendance has been up.2256    I actually think our general fan age is younger than we are2257given credit for because we moved a lot of our fans to digital2258sort of earlier than others and it got a little bit lost in the2259ratings.2260    But we are definitely focused on that and I think we have2261made a lot of improvements to the games over the past couple2262years that are now paying dividends.2263    Senator Schmitt. Thanks. Thank you, Mr. Chairman.2264    The Chairman. Thank you.2265    Ranking Member Cantwell.2266    Senator Cantwell. Thank you, Mr. Chairman.2267    Again, thank you to the witnesses. I am just trying to2268follow up on that last point, particularly about the consumer2269experience and what you just mentioned, Mr. Gersh.2270    So are you saying that you guys track and have metrics on2271fan frustration and input from consumers?2272    Mr. Gersh. Yes, I do not know that it is specific metrics2273or data but it is certainly something we hear. I mean, we get--2274you know, when a fan has MLB.tv if the game that they are2275looking to watch is in their local market and they get blacked2276out we hear about that, and so those are things that we are2277trying to address.2278    Senator Cantwell. When you negotiate media rights are you2279negotiating both broadcast and streaming rights?2280    Mr. Gersh. Yes.2281    Senator Cantwell. OK. And so by doing that you are limiting2282competition right there, right? I mean, the old model2283broadcasting rights everybody would bid and then you would2284decide, and then in the broadcast model you just rented my2285eyeballs. That is it.2286    You made me watch a lot of ads but I did not--you did not2287cost me anything, right? So you had a competition. Everybody2288bid. You decided what bid you wanted and then basically I got2289to watch it for free, although I had to watch some commercials.2290    Now, because you negotiate and you limit the streaming2291rights you are limiting the competition and you are creating2292the cost to the consumer and I would say it would be2293interesting if you were helping local media out by keeping2294broadcast rights with local media so that the team could2295negotiate with local syndicate and broadcasters.2296    But in reality what you are doing is basically you are2297using your marketability that we gave you on antitrust to2298leverage those broadcast rights and limit the streaming media2299rights, which could provide true competition to you.2300    And so that is what you are hearing from everybody here.2301Everybody here has been through this experience. Every--I will2302bet you every single member of this committee has been through2303this experience where they thought they were going to get2304something and they could not get it.2305    And so the question is whether we should continue to give2306you this antitrust exemption if, in fact, you are going to use2307your market power on broadcast to also limit market competition2308on streaming and not have the old model of broadcast2309competition anyway?2310    So you do not have the broadcast competition. Now you have2311this new streaming tool and you are basically clobbering the2312consumer, making everything more expensive.2313    And I will bet you do not have data. So, yes, you get into2314a fight with a local broadcaster and then you black out a bunch2315of people and they are also mad about that.2316    But, no, you are not collecting data. You are collecting2317checks. That is what you are collecting. You are collecting2318revenue.2319    Mr. Bergmayer, am I saying this correctly about the lack of2320competition and why we should reconsider this in the context of2321the----2322    Mr. Bergmayer. Yes, I completely agree with you. I think in2323particular in return for the various public benefits that2324leagues and teams receive that there should be an obligation to2325make sure that the games are widely accessible and competitive.2326    Senator Cantwell. So I do not think they would police any2327of this. So you then--because you control both the streaming2328and the broadcast rights then you sell something to somebody.2329    They do a horrible job of saying whether they really have2330the content. They advertise that they have the content and then2331you pay and you signed up for 6 months of the subscription.2332    Yes, how many people have time to get out of that when you2333go on and they do not really have the game?2334    So there is just so much happening here. So what is your2335suggestion, Mr. Bergmayer? What would we--what should we do now2336to help consumers out since we have too much control here and2337not enough focus on the consumer, you know?2338    I mean, most people would say, I want everybody to watch2339this stuff because I believe in the brand. I am pretty sure the2340Mariners would want everybody to watch. You know, they like2341their players and they would like people to see them. So----2342    Mr. Bergmayer. I tend to think that the best balance is to2343just think about the difference between the local team in a2344community and then the out-of-market national type games, and I2345think it is a complete reasonable request of policymakers at2346the state, local, and Federal level to say in exchange for the2347public support you get, in exchange for the unique market power2348characteristics that teams have that make them very different2349than other entertainment products, that they work to make sure2350that games in the local market are available free of charge in2351some way, supported by ads like they were for decades.2352    Senator Cantwell. So you would go that route? You think2353that is the most critical aspect of this?2354    Mr. Bergmayer. I think taking care of the local fans and2355local markets is where I would have my first priority.2356    Senator Cantwell. Well, I mean--and that is music to my2357ears because I care about local broadcasting. I do not think--I2358think the demise of local broadcasting is a big problem in the2359United States of America, and you have to have community and2360what better way to build community than around a sports team?2361    What about this issue of antitrust as it relates to the2362fact that these guys, really, they strangled it. For a long2363time they strangled streaming because they wanted to control it2364too and at the behest of trying to keep cable and keep2365broadcast.2366    But now you are back to--now you are back to they are just2367not doing an effective job of monitoring the people they sell2368the streaming rights or enable the streaming rights to and2369thereby the consumer gets clobbered with a bunch of nonsense2370where they cannot access what they really wanted. So what do2371you do about that?2372    Mr. Bergmayer. Yes, I think there are reasons why you want2373to have there to be some coordination in the negotiation of2374media rights for leagues. So that does make sense.2375    But it cannot just be for free. I think it needs to be in2376exchange for a clear public benefit and I think that benefit2377would be availability of games in local markets for free and2378working to reduce the confusion and fragmentation of games and2379just, like, looking to keep their costs down overall.2380    Senator Cantwell. Yes. Well, I am thinking about out of2381state. I am thinking about out-of-market games, right, or2382somebody who wants to follow.2383    Mr. Bergmayer. Sure. Out of----2384    Senator Cantwell. So I am saying that is--to me, that is a2385little different and I see my time has expired. But if you2386could help us for the record on this. I think what we are--2387there is just too much here where they can just think about the2388dollar instead of thinking about the true consumer experience.2389    And so I like your suggestion on local broadcasting but I2390still think we need something on the streaming media side that2391says we have a little bit more responsibility to the consumer2392to make sure that the consumer experience is not hijacked2393behind 6 months of a larger subscription that may or may not be2394related.2395    But I will write something for the record. Thank you, Mr.2396Chairman.2397    The Chairman. Thank you.2398    Senator Moreno.23992400               STATEMENT OF HON. BERNIE MORENO,2401                    U.S. SENATOR FROM OHIO24022403    Senator Moreno. Well, thank you for being here. Chairman,2404thank you for putting on the hearing.2405    So a question to the three league representatives. What are2406your metrics? You have to have metrics, right, in terms of how2407many--and you talked about that a little bit in your testimony.2408    What are your metrics in terms of how you see the amount of2409games accessible? Is that something that you track in terms of2410being able to make decisions as to what you are doing in terms2411of--obviously, there is not really free games, just to be2412crystal clear.2413    There are games that you view with advertising paying for2414that privilege. But what are the--I am curious about what your2415metrics are? I will start with you, Mr. Gersh.2416    Mr. Gersh. Sure. If I understand your question, you are2417talking about how the games are--the metrics on availability of2418the games.2419    Senator Moreno. Right.2420    Mr. Gersh. And I think, you know, what we have looked at is2421what percentage of the fans in the home television territory2422can watch the games and are they available and, you know,2423historically they have been on RSNs, on Pay TV, distributed2424platforms.2425    And as I mentioned before, less and less people have been2426signing up for Pay TV, and then on the Pay TV systems they have2427been either higher tiered or not carried at all.2428    So we have been concerned where we have had in some cases,2429you know, only 35 percent of the fans in our territory could2430get access to those games.2431    So that is why we took a really strong look at this the2432past couple years and Commissioner Manfred's, you know, view to2433make the games more accessible where we now have direct to2434consumer offerings available in 29 territories. So for us, that2435covers the whole territory. For $20 a month you can watch----2436    Senator Moreno. I am talking about that you do not have to2437pay a subscription--that you can watch the game with ads. What2438is your current metric and where--has that gone down or has2439that gone up? Has accessibility increased or decreased?2440    Mr. Gersh. It has actually--again, since I have been2441involved over the past two decades all the games have been on2442Pay TV. There were not a lot of freely available broadcast2443games for major league baseball.2444    So it has increased over the past couple years. Now a2445majority of our teams do make at least a package of the games2446available on free over-the-air TV. You know, whether it is 102447or 20 games they make those available, and at the national2448level, you know, we have our World Series and the All-Star2449game.2450    Our biggest events are on Fox Broadcasting, which is a2451freely available channel, and then we have been experimenting2452with new ways to make games for free. So our partnership with2453Roku, the games that we put on Sunday morning are freely2454available within----2455    Senator Moreno. So you do not have a target X percentage of2456games are available without paying subscriptions and you are2457trying to get that number to increase?2458    Mr. Gersh. We do not have a particular metric on that.2459    Senator Moreno. OK. Mr. Koenig.2460    Mr. Koenig. Thank you, Senator.2461    Yes. As I said, the availability of games on free over-the-2462air television is very important to us. So on the national2463level we have 70--in our new deals that will start next year 752464regular season games and almost--depending on how long the2465playoff series goes another 40, 50 games available on free2466broadcast television, which is the most in NBA history and2467second maybe only to the NFL of any league, and it was2468something that was a real priority in our negotiations.2469    In local television, three years ago there was one team2470that put its games out on over-the-air television--free over-2471the-air television.2472    This past year we had 21 teams but at least some number of2473games available on free over-the-air television, a total of 5702474games on free over-the-air television locally, which is the2475most in 20 years in the----2476    Senator Moreno. So you are seeing that number go up?2477    Mr. Koenig. Absolutely.2478    Senator Moreno. And you track that and you watch that?2479    Mr. Koenig. Yes.2480    Senator Moreno. Mr. Proper.2481    Mr. Proper. So we totally agree with you, Senator Moreno.2482We are looking very extensively in how we can increase our over2483the air. Now, on a national basis that is a bit of a2484partnership where we have our relationships with ABC, for2485example, and it becomes however many games we can get on with2486windows. We try to.2487    But as Mr. Koenig said, at the local level it has really2488increased dramatically with the demise of the RSN business and2489what we have seen is we now have three teams whose all of their2490games are available over the air locally.2491    We have others who are very much exploring that and then--2492at that model and I think others that will adopt it.2493    We have also had teams adopting or trying out the model of2494making it available for free on the Internet so where they2495cannot get necessarily over-the-air coverage for all of their2496games they are trying to make every game free as an Internet2497product, which is a unique model that is just in its infancy.2498    Senator Moreno. Got you. In my short time remaining I would2499just ask you, the three of you, to respond--actually, the four2500of you to respond really quickly.2501    It seems with technology an infinitely solvable problem2502because if I am signed up for a streaming service I use some2503sort of identity validation of who I am.2504    Why would you penalize that person and not just make it so2505that you sign up in one place with that same credential and2506allows you to sign up in all of them and allow, for example--2507like, for example, Amazon--well, they know too much about me--2508but they know that I am a Max subscriber so they do not charge2509me for Max also.2510    Why do you not look at solutions like that? Because it2511seems to me for you, you want to make this easier for your2512fans.2513    Mr. Gersh. We agree with that and, in fact, if you buy2514MLB.tv on Amazon you can authenticate and watch it on our2515platform. We do not----2516    Senator Moreno. But not the local piece, though. It should2517automatically carry across all platforms in every way possible.2518    Mr. Gersh. I agree with that completely. It is just an2519issue of rights and getting the other side to do that. At MLB2520we have long--we have integrated with ESPN and Fox and all our2521cable distributors so that people can watch on our platform if2522they subscribe through Pay TV. Hundred percent agree with you2523that more of that should happen.2524    Senator Moreno. I am over time but let me just say this, my2525two cents. You guys solving this problem and making it more2526available, easier, and less friction will be dramatically less2527painful than if this institution decides to give you rules and2528guardrails.2529    So option one, you solve it and it is great. Option B, not2530so great.2531    The Chairman. Thank you.2532    Senator Rosen.25332534                STATEMENT OF HON. JACKY ROSEN,2535                   U.S. SENATOR FROM NEVADA25362537    Senator Rosen. Thank you, Chairman Cruz. I want to thank2538Ranking Member Cantwell, and I am really pleased that you are2539holding this hearing on such an important and emerging issue.2540    Well, because my state, of course, Nevada, but we have Las2541Vegas, and Las Vegas the entertainment capital of the world. We2542are home to all-star music performances, live shows,2543international events.2544    Over the past several years we have started to become the2545sports capital of the world as well, from hosting major UFC2546fights to being home of the Formula One Las Vegas Grand Prix,2547and we have seen major league sports become a bigger and bigger2548part of the Vegas sports and entertainment scene as well.2549    In fact, our first major professional sports team, the Las2550Vegas Golden Knights, established less than a decade ago and,2551of course, I am proud to say I think tonight is the first game2552of round two in the playoffs.2553    So I was traveling yesterday so I make sure--I think it is2554tonight. So anyway, go Knights. They are in the playoffs.2555    We are so proud of them and they are beloved in Las Vegas.2556They are a tremendous success that they have enjoyed in their2557first seven seasons in the NHL. It is unprecedented for an2558expansion team.2559    And the success does not end there. Our Las Vegas Aces won2560back to back WNBA championships in 2023. We added an NFL team2561when the Raiders opened their brand new state-of-the-art2562Allegiant Stadium in 2020 and last year we hosted a fantastic2563Super Bowl for the first time, and next up we have the A's2564bringing major league baseball to the great state of Nevada in25652028. Someday soon I am hoping that we will add an NBA team as2566well.2567    But just as Nevada's sports environment is changing how2568fans watch their team is changing. So Golden Knights, they have2569been doing a lot of innovation.2570    So over the past two NHL seasons, thanks to an agreement2571between the Golden Knights and Scripps fans across Nevada are2572able to watch the Knights free of charge over the air on local2573broadcast television.2574    The Knights have continued to innovate, creating an app2575experience called Knight Time where fans can access all Knights2576games live on their devices.2577    So, Mr. Proper, can you speak to how the NHL views the2578ability of teams to make these types of deals and to innovate2579with new ways to respond to fan demands and how these2580flexibilities really just benefit the fan experience,2581especially the local fan base, right?2582    Mr. Proper. Absolutely, and great point, Senator Rosen.2583    We have been very, very positive in working with our clubs2584to find new models and the Vegas Knights model is an absolutely2585outstanding one, we think, for fans across the board.2586    As you mentioned, every game is over the air for free with2587Scripps other than the national games. You also have the2588ability to buy the package if you want to buy it as a digital2589product.2590    But what it has also allowed them to do is grow the2591business and grow what they are trying to do, grow their fan2592base. So what we have seen is that in their first year2593switching from the RSN model they had a 700 percent increase in2594their ratings.2595    What they have been able to do in terms of growing the fan2596base, particularly for a relatively new team, has been off the2597charts of what we have been trying to accomplish with every one2598of our teams.2599    And so what we have seen is this model has completely been2600vindicated as both affordable for fans, greater accessibility,2601and ultimately growing the fan base for the Knights, which has2602been their primary goal in doing these types of deals.2603    Senator Rosen. Yes, it has been tremendous for Las Vegas2604and for them, and so I want to talk about innovation in other2605leagues.2606    So, Mr. Gersh and Mr. Koenig, I want to give you the2607opportunity as well. How do the MLB and NBA, as well as their2608teams, plan to meet the moment here and are there new models2609that you can point to in creativity and delivering to consumer2610demands?2611    Mr. Koenig?2612    Mr. Koenig. Thank you, Senator.2613    Yes, the example of the Knights and the Aces too, which are2614on broadcast television, seems to be a trend.2615    Senator Rosen. We love our teams in Nevada.2616    [Laughter.]2617    Mr. Koenig. As well you should.2618    And is a trend that we see more and more. In this time of2619disruption in the cable universe more and more teams, as I have2620mentioned, have returned to broadcast television.2621    And it is kind of a hybrid approach. For the people who2622watch through traditional television more games on free over-2623the-air stations is certainly a benefit, and for the people who2624are digital natives who maybe never subscribed to pay2625television having the games--every game also available through2626streaming platforms, which is something that the WNBA and the2627NBA teams are increasingly doing, all but one of our teams has2628all of their games available on a streaming platform--local2629games.2630    We find that that ladder enables us to do a couple of2631things. It allows us to provide a lot more choice and2632personalization in different audio-video feeds and fantasy and2633things like that.2634    But what it also enables us to do, which is something that2635we have discussed with other senators, is provide access and2636discoverability in a world that is more and more fragmented.2637    That digital--the NBA app and the WNBA app, for example,2638can be the entry point. You may not know which channel the Aces2639are on if it is not a national game but if you go to the WNBA2640app you will be able to click right on the game and go directly2641there.2642    It is on a digital platform. You will be able to access2643your games. And we are going to even do that beyond just the2644NBA and WNBA apps.2645    We are going to do that through a number of other partner2646and team relationships. You might be able--when you order food2647to watch a game you will have an opportunity to click from that2648food delivery app directly to a game telecast.2649    We are working all this out to make it--because one of the2650issues that this committee rightfully focused on in calling2651this hearing is fragmentation and we think there are a lot of2652ways to deal with that, particularly through the digital2653distribution.2654    Senator Rosen. Mr. Gersh, if you go quickly. I am over my2655time. We do not want to leave out baseball.2656    Mr. Gersh. Right. I will say I agree with what both of my2657colleagues have said, and with the athletics in particular one2658of the other ways we are giving optionality is their direct to2659consumer service is both directly--available directly right on2660MLB.tv this year if you just want to buy the athletic games.2661    And then we also let NBC put it on Peacock as an upsell to2662Peacock if you want the full RSN. So just continuing to find2663ways to give fans more options to watch their games is what we2664are focused on. Thank you.2665    Senator Rosen. Thank you.2666    The Chairman. I would mention if the NBA could somehow2667reduce Steph Curry's shooting percentage that would really help2668for my Rockets, who went through a very painful series, and I2669would also like to check to see if Mr. Curry is, in fact, a2670space alien.2671    [Laughter.]2672    The Chairman. And with that, I recognize Senator Markey.26732674               STATEMENT OF HON. EDWARD MARKEY,2675                U.S. SENATOR FROM MASSACHUSETTS26762677    Senator Markey. That shooting did ruin this year's bet2678between the Chairman and the Senator from Massachusetts. I won2679last year's bet on the Dallas-Celtics series and I was hoping,2680actually, that Steph Curry's shooting percentage should go2681down.2682    And, by the way, the Celtics shooting percentage should go2683up a little bit from last night in three pointers, OK, but--and2684I think that will occur.2685    So we thank you all for being here. As an avid sports fan I2686know the frustration of having to keep up and pay for numerous2687apps to watch your favorite team.2688    But today I want to address a related but urgent threat to2689public access to media more broadly. Last week President Trump2690unleashed a series of attacks on public media and the2691Corporation for Public Broadcasting including an executive2692order that attempted to force the Corporation for Public2693Broadcasting to cease funding for PBS and NPR.2694    He also proposed to end all funding for the Corporation for2695Public Broadcasting in his 2026 budget request. Eliminating the2696Corporation for Public Broadcasting would devastate hundreds of2697local public media stations that rely on CPB to serve their2698communities, especially in rural and low income areas.2699    From ``Arthur'' to ``PBS NewsHour'' from tornado alerts to2700rural states to local debates in city halls, public media has2701always been there, not because it turns a profit but because it2702serves the public.2703    These stations connect our country from rural towns to2704urban centers and provide news and culture and children's2705programming without commercial influence. Cutting off CPB2706funding will not hurt elites in Washington. It will hurt2707children in underserved classrooms who rely on ``PBS Kids.''2708    PBS is the children's television network from 6 a.m. in the2709morning, and children for generations of all races, all2710incomes, have relied upon the Public Broadcasting System to2711provide that information.2712    It will hurt seniors in rural communities who trust their2713local public radio stations for news and weather and emergency2714information. It will hurt the civic fabric of this Nation at a2715time when polarization and division are already corroding our2716shared sense of truth.2717    Mr. Bergmayer, do you agree that public media plays a vital2718role in ensuring all Americans, regardless of income or2719geography or race, have access to trustworthy information?2720    Mr. Bergmayer. I do, Senator, and I believe it is2721especially important in rural areas throughout the country.2722    Senator Markey. Do you agree that public media plays an2723important role in ensuring that children of all ages and2724backgrounds have access to educational and enriching2725programming which has served generations of American children?2726    Mr. Bergmayer. Yes, I do, and as a parent my kids loved PBS2727programming. I think noncommercial children's programming is2728very important.2729    Senator Markey. Do you agree that public broadcasters play2730a central role in communicating emergency information during2731extreme weather or any other emergency?2732    Mr. Bergmayer. Yes, I do.2733    Senator Markey. So thank you for that.2734    OK. We are going to have a major debate here in the2735Congress over the role of the Public Broadcasting System, NPR2736and PBS and all of those local stations.2737    This is a debate which we are going to have and I just2738think it is very important that everyone understand that the2739Corporation for Public Broadcasting represents a promise that2740every American, no matter their income or their background or2741their zip code, deserves access to free--absolutely free2742education, culture, local reporting, and trusted information.2743    We must reject this attempt to silence the truth and2744instead recommit to the public interest, to local storytelling,2745and to the democratic values that public broadcasting has2746upheld for our generations.2747    And we must protect the children, especially the poorest2748children in our society, who may not have access to all of the2749apps that we have been hearing today but do have access for2750free to the public broadcasting of their local communities.2751    The American people are not asking us to defund Big Bird.2752They are asking us to defend Big Bird and all that it2753represents in our society's history.2754    So I thank you, Mr. Chairman.2755    The Chairman. Thank you, Senator Markey.2756    I want to thank each of the witnesses for your testimony2757today. Senators will have until the close of business on2758Tuesday, May 13, to submit questions for the record.2759    Witnesses will have until the end of the day on Tuesday,2760May 27, to respond to those questions.2761    And that concludes today's hearing. The Committee stands2762adjourned.2763    [Whereupon, at 11:41 a.m., the hearing was adjourned.]27642765                            A P P E N D I X27662767  Response to Written Questions Submitted by Hon. Marsha Blackburn to2768                              Kenny Gersh2769    Question 1. AI is playing an increasingly crucial role in the2770sports industry, from enhancing player performance and injury2771prevention to improving fan engagement and media consumption. For2772example, the NHL is using generative AI to bringing in a younger2773audience by using NHL EDGE Positional Data to animate the action of2774select NHL games for children. While generative AI offers many2775benefits, this technology is ripe for abuse as many of these tools2776implicate sensitive legal issues such as athlete publicity rights, data2777privacy considerations, and copyright protection. What are some of the2778ways your leagues are currently using generative AI and how will you2779ensure it is used safely in the future?2780    Answer. MLB is exploring the use of generative AI to bring new2781technology to our fans in more efficient ways as we continue to assess2782use cases that enhance the fan experience safely and securely. Our2783engineers who develop our apps, video games, streaming services and2784other digital products employ generative AI to support their work as do2785business groups throughout our offices, leveraging enterprise-wide2786tools as we work to grow the game for our fans. We are currently2787testing the incorporation of generative AI-based services to provide2788fans at games with information and assistance within our Ballpark app.2789We continue to evaluate ways to bring our fans more tools and features2790while prioritizing protecting fans' data, our intellectual property and2791the security of our digital products and services.27922793    Question 2. Retransmission consent enables broadcasters to charge2794MVPDs a fee for the right to retransmit local signals. Steamers are not2795currently subject to MVPD retransmission consent requirements. However,2796the FCC has previously considered subjecting streamers to MVPD rules by2797reclassifying them as MVPDs. While the FCC did not publish a final2798rule, a significant question exists as to whether the FCC has the2799statutory authority to do so. If the FCC were to reclassify streaming2800platforms as MVPDs for purposes of retransmission consent requirements,2801what impact would this have on your respective leagues and fan2802experiences? Would this increase the number of potential blackouts?2803    Answer. As a leader in the online video distribution (``OVD'')2804market, we do not believe that such regulation would be beneficial to2805our fans. The OVD market is already providing consumers with more2806choices than ever before to watch high-quality television programming2807on personal computers, tablets, smart phones and other Internet-2808connected devices. Imposition of additional regulation may limit,2809rather than increase, consumer choice. Further, we do not see how this2810regulation would help positively address blackouts for our fans. In our2811view, the better course is to continue to let this emerging market of2812increased consumer choice develop.2813    If and to the extent that the Commission determines to implement2814new regulations in this area, it should at minimum exclude OVDs that2815make available only content that they or their affiliates own or2816otherwise have the right to make available.28172818    Question 3. The sports media landscape is experiencing increasing2819fragmentation with the rise in streaming services and digital2820platforms. We have seen a decline in the traditional modes of2821broadcasting. Are you concerned that fans in rural or underserved2822broadband areas are being left behind as your leagues transition away2823from traditional broadcast to digital platforms? How are your leagues2824planning to ensure American consumers, especially older and less tech-2825savvy ones, aren't left behind in the shift away from traditional2826broadcasting?2827    Answer. Currently, we view the distribution of our games on digital2828media platforms as being complimentary to, not in place of, traditional2829methods of distribution. As of today, over 95 percent of our 2,4302830regular season games remain available via traditional broadcasting2831methods. In addition, our most important events, the World Series and2832All-Star Game, along with approximately 60 exclusive nationally2833broadcast regular season games continue to be made available on FOX, an2834over the air broadcast network.2835                                 ______28362837    Response to Written Questions Submitted by Hon. Eric Schmitt to2838                              Kenny Gersh28392840    Question 1. In your testimony, you describe the decline of the RSN2841model and how it's created challenges for fan access. The St. Louis2842Cardinals have historically had one of the strongest RSN relationships2843in baseball, but recent bankruptcies and consolidations have brought2844this relationship into question. How specifically is MLB working with2845teams like the Cardinals to ensure fans don't lose access during this2846transition period?2847    Answer. We are very focused on making sure local fans can watch2848their games. Faced with the crisis hitting the Regional Sports Network2849business, MLB built out the capability to produce and distribute live2850baseball games directly. Due to MLB's preparation and efforts, when2851certain RSNs shut down or dropped the rights to carry an MLB team, MLB2852was able to step in to immediately produce and distribute those games,2853ensuring there was no interruption to our fans, who were able to watch2854those games on the same Pay TV systems that had previously carried them2855as well as via new direct to consumer offerings available to every fan2856throughout each team's home television territory. Currently, MLB2857produces and distributes games for the San Diego Padres, Arizona2858Diamondbacks, Colorado Rockies, Minnesota Twins and Cleveland2859Guardians. Should the St. Louis Cardinals or any other MLB team no2860longer have a viable third-party option to distribute their games2861locally, MLB will have the capability to make sure those games are2862produced and distributed with limited or no disruption to their fans as2863we have successfully done to date in the markets mentioned above.28642865    Question 2. Both the Cardinals and Kansas City Royals have recently2866begun simulcasting some of their games on their RSN as well as on free2867over-the-air local broadcast channels. These games have seen record-2868high viewership, with a recent Royals game that was simulcast on2869broadcast coming in as the most watched Royals game in the last three2870years. Given the recent decline in broadcasting revenue under the2871restructured RSN deals, how is MLB evaluating the trade-off between2872legacy RSN exclusivity and broader fan access?2873    Answer. Each MLB club continues to evaluate the best method to2874distribute games to its fans, which in most cases today includes a2875combination of delivery via Pay TV on RSNs, direct to consumer2876offerings and over the air broadcasts. As RSN contracts have been2877renegotiated or renewed, many Clubs, such as the St. Louis Cardinals2878and Kansas City Royals, have negotiated for the right to make a portion2879of their games available via over the air broadcasts. For the 2025 MLB2880season, a majority of our Clubs make a package of games available via2881free over the air television.28822883    Question 3. More specifically, does MLB see hybrid or fully over-2884the-air models as a viable long-term solution to ensuring both2885financial stability for clubs and accessibility for fans, particularly2886in mid-sized markets like St. Louis and Kansas City?2887    Answer. As stated above, each MLB club continues to evaluate the2888best method to distribute games to their fans. While over the air2889models provide enhanced reach, the current models are not sufficient to2890be viable solutions to ensure financial stability to Clubs, often2891bringing in less revenue per game than the cost of production. However,2892we presently believe in the value of continuing to offer at least a2893portion of games available via over the air broadcast as part of MLB's2894overall media strategy. Our most important events, the World Series and2895All-Star Game, along with approximately 60 exclusive nationally2896broadcast regular season games are today made available on FOX, an over2897the air broadcast network, and a majority of our Clubs make a package2898of games available via free over the air television, including the five2899teams for which MLB handles distribution directly.2900                                 ______29012902   Response to Written Questions Submitted by Hon. Maria Cantwell to2903                              Kenny Gersh29042905    Tariffs. On May 5th, President Trump escalated his trade war by2906announcing tariffs on foreign-produced media. Markets reacted sharply,2907with major media stocks tumbling amid uncertainty over the scope and2908impact of the move. Although the President suggested the tariffs may2909apply only to films, the vague announcement has left companies bracing2910for broader trade penalties.2911    Major League Baseball has a team based in Canada, plays games2912internationally, and is actively promoting American sports to global2913audiences.29142915    Question 1. How has the uncertainty about how these tariffs will be2916applied impacted your current and future investment and planning2917activities?2918    Answer. To date, uncertainty about how these tariffs will be2919applied has not had measurable impact to those activities with respect2920to our media business.29212922    Local Broadcasting and Sports Media. A 2023 survey found that 352923percent of respondents found sports video content too expensive, 302924percent said they did not know which channel was broadcasting the event2925they were trying to watch, and 28 percent did not know which platform2926to watch.2927    With the growing fragmentation in the media market, fans are no2928doubt frustrated with solving the puzzle of how to watch games, what2929platform to tune in to, and often realizing on short notice that a game2930is unavailable in their market.29312932    Question 1. The National Football League has a policy to ensure2933that fans in a team's local market can access the game for free over2934the air, regardless of how it is distributed nationally. Have you2935considered a similar policy for baseball? If not, why not?2936    Answer. Unlike the NFL, which manages distribution of all local2937rights centrally, at present MLB's local media distribution rights are2938not managed by central baseball but by the individual Clubs.29392940    Fan Satisfaction and Experience. Historically speaking, the2941evolution of professional sports in the United States has gone hand-in-2942hand with the rise of radio and television broadcasting. The first2943nationally televised sports broadcast was a college baseball game2944between Princeton and Columbia in 1939. A few months later, the NFL's2945first televised game was broadcast on NBC.2946    Today, professional sports boast record-breaking media deals with a2947variety of platforms, yet carriage by local broadcasters remains common2948among the major leagues.29492950    Question 1. What specific metrics do you track regarding fan2951frustration with your current streaming and broadcast arrangements?2952    Answer. MLB routinely conducts fan research to understand our fans'2953viewpoints on a range of issues. In addition, we monitor social media2954for fan sentiment and do hear from fans when they are frustrated. As we2955have made more and more games available via direct to consumer2956offerings, with 29 of our 30 MLB teams now available this way, we have2957seen a reduction in fan complaints about local blackouts. We also feel2958it is important to experiment with different methods of making our2959games available to fans to explore which platforms show the greatest2960potential to reach the most fans in the future.29612962    Question 2. Have you researched how many potential viewers you're2963losing due to complexity and cost barriers?2964    Answer. We believe that the steps we have taken to address these2965issues have mitigated complexity and cost barriers for our fans and put2966our content in more of our fans' hands than ever before. Because we are2967presently distributing games through a combination of delivery via Pay2968TV, direct to consumer offerings and over the air broadcasts, we2969continue to advance our goal of meeting our fans where and how they2970want to watch our games. As media consumption has shifted over time, we2971have taken steps to address these barriers for our fans in local2972markets, for example by expanding the choices available to consumers2973who have elected not to subscribe to a Pay TV service as well as in the2974wake of the migration by distributors of RSNs to lower-subscribed and2975more expensive sports tiers, rather than as part of the expanded basic2976packages in which they had historically resided.29772978    The Future of Sports Media. Your testimony at this hearing was2979informative and shows that sports programming is thriving in a bustling2980media landscape. Clearly, fan demand for sports isn't slowing down any2981time soon. But as I highlighted in my opening statement, it is2982important to ensure that rising costs for sports content don't come at2983the expense of the fan experience.29842985    Question 1. Where do you see the future of sports media going in2986the next five years?2987    Answer. With respect to MLB, as existing contracts expire, we hope2988to partner with entities that will make our games available to the2989broadest possible audience and continue our efforts to eliminate2990territorial restrictions, all toward the goal of making our games2991available to any fan who wants to watch them regardless of location.29922993    Question 2. What is your league doing to maximize access to fans2994who subscribe to your streaming services?2995    Answer. With one exception, each of our thirty Clubs now makes2996available via streaming all of their locally televised games,2997complementing the league's streaming service that makes each locally2998broadcast game available outside of the applicable local territory. We2999believe it is important to also broadcast some of our games to a3000national audience outside of our subscription services on widely3001available platforms such as FOX, ESPN and Apple TV. Those national game3002broadcasts consist of less than 6 percent of our 2,430 regular season3003games.30043005    Sports Broadcasting Act and Antitrust Protections. The Sports3006Broadcasting Act of 1961 grants antitrust exemptions to the major3007professional leagues, allowing their teams to pool media rights and use3008their market power to negotiate broadcasting deals. The leagues have3009benefited from this legal exemption, yet as we see more fragmentation3010in the media landscape, due in large part to the rise of streaming3011platforms, it seems consumers are left behind, whether it's blackouts3012in the local market or subscriptions that still don't get you the games3013you expect to watch.30143015    Question 1. An antitrust exemption is extremely valuable to the3016leagues. Why should the government continue to grant these3017extraordinary legal protections to leagues?3018    Answer. Pooling broadcasting rights is a fan friendly, market3019efficient practice that has resulted in a tremendous increase in3020output. MLB's pooling of rights in creating MLB Advanced Media allowed3021the league to innovate and revolutionize, which resulted in MLB being3022the first league to stream live games, beginning with websites and then3023to mobile. While MLB is comprised of 30 Clubs competing on the field,3024it most effectively and efficiently operates as one entity at times in3025order to create the best and most widely accessible entertainment3026product for its fans.3027                                 ______30283029   Response to Written Questions Submitted by Hon. Maria Cantwell to3030                             William Koenig30313032    Seattle Supersonics. In 2008, the Sonics left Seattle for Oklahoma3033City and broke the hearts of millions of die-hard fans. It's been 173034years, and Seattle is still the largest market in the country without3035an NBA team.30363037    Question 1. When will the NBA return to Seattle?3038    Answer. The league is currently in the early stages of evaluating3039the potential for future expansion. Beyond that, we have no further3040information at this time, including any timetable or comment on any3041possible location for expansion.30423043    Tariffs. On May 5th, President Trump escalated his trade war by3044announcing tariffs on foreign-produced media. Markets reacted sharply,3045with major media stocks tumbling amid uncertainty over the scope and3046impact of the move. Although the President suggested the tariffs may3047apply only to films, the vague announcement has left companies bracing3048for broader trade penalties.3049    The NBA has a team based in Canada, plays games internationally,3050and is actively promoting American sports to global audiences.30513052    Question 1. How has the uncertainty about how these tariffs will be3053applied impacted your current and future investment and planning3054activities?3055    Answer. Like every other global business, we are monitoring3056developments in this area closely and we remain in ongoing dialogue3057with our partners around the world on this topic.30583059    Local Broadcasting and Sports Media. A 2023 survey found that 353060percent of respondents found sports video content too expensive, 303061percent said they did not know which channel was broadcasting the event3062they were trying to watch, and 28 percent did not know which platform3063to watch.3064    With the growing fragmentation in the media market, fans are no3065doubt frustrated with solving the puzzle of how to watch games, what3066platform to tune in to, and often realizing on short notice that a game3067is unavailable in their market.30683069    Question 1. The National Football League has a policy to ensure3070that fans in a team's local market can access the game for free over3071the air, regardless of how it is distributed nationally. Have you3072considered a similar policy for the NBA? If not, why not?3073    Answer. We evaluate all distribution strategies with the goal of3074maximizing access to our games and providing consumers with flexibility3075in how they watch. This work has included analyzing the approaches3076taken by other leagues in distributing their games, and the extent to3077which potential distribution options are able to accommodate a full3078schedule of game telecasts.30793080    Fan Satisfaction and Experience. Historically speaking, the3081evolution of professional sports in the United States has gone hand-in-3082hand with the rise of radio and television broadcasting. The first3083nationally televised sports broadcast was a college baseball game3084between Princeton and Columbia in 1939. A few months later, the NFL's3085first televised game was broadcast on NBC.3086    Today, professional sports boast record-breaking media deals with a3087variety of platforms, yet carriage by local broadcasters remains common3088among the major leagues.30893090    Question 1. What specific metrics do you track regarding fan3091frustration with your current streaming and broadcast arrangements?3092    Answer. The NBA fan experience is a critical area of focus for us,3093and that focus is reflected in our ongoing data collection and analysis3094relating to our game telecasts. For example, we measure viewership and3095engagement for each game telecast (and for each stream available to our3096fans), including in-depth assessments that help us determine which3097aspects of telecasts engage viewers most effectively. We also monitor3098social media and e-mail feedback from fans on an ongoing basis to3099measure fan sentiment about the game viewing experience. In addition to3100these ongoing monitoring efforts, we periodically conduct surveys to3101measure fans' engagement with NBA telecasts across platforms--including3102what they do and do not like about the viewing experience.31033104    Question 2. Have you researched how many potential viewers you're3105losing due to complexity and cost barriers?3106    Answer. We regularly monitor the consumer media landscape to3107understand how our fans consume content, including which platforms and3108distributors they have access to and use regularly. We use this and3109other data to inform our approach to bringing live game content to our3110fans as effectively and as broadly as possible. For example, the3111negotiations of our new national media agreements were informed by this3112research.31133114    Supporting Women's Sports. 2024 was a banner year for women's3115sports, as viewership increased by 131 percent. In particular, the WNBA3116saw its most-watched regular season ever, with game telecasts averaging3117at least one million viewers each. Building off this momentum, the WNBA3118signed a massive $2.2 billion media rights deal with Disney, Amazon3119Prime, and NBCUniversal.31203121    Question 1. Mr. Koenig, I understand that the NBA helps broker3122these media contracts for the WNBA and that you were a part of3123negotiations. How is the WNBA capitalizing on the growing interest and3124fan following when looking to the future of the sport?3125    Answer. Last season was a record-breaking year for the WNBA by any3126measure, and the league is well positioned to continue its growth this3127season and beyond. In the wake of the new national media deals that3128were announced last year, the WNBA has retained the right to license3129national game rights to additional partners starting in 2026 and has3130already seen significant interest from market players. The league is3131also continuing to expand its footprint, with new teams coming aboard3132in the Bay Area, Toronto, and Portland.3133    As previously announced, the WNBA is also making certain changes to3134the playoff format beginning this season. The WNBA Finals will be3135changed from a best-of-five series to a best-of-seven series, and the3136first round of the playoffs will be changed from a best-of-three series3137with the first two games played in one location to a 1-1-1 format that3138will ensure each participating team will get to play at least one3139playoff game on its home court in front of its hometown fans.31403141    Question 2. How are media deals like the one the WNBA just secured3142creating opportunities to reinvest in the sport and build the next3143generation of athletes?3144    Answer. By maximizing the value of our content and generating fair3145market value for WNBA rights, we are able to generate the resources3146necessary to reinvest and grow the WNBA.31473148    The Future of Sports Media. Your testimony at this hearing was3149informative and shows that sports programming is thriving in a bustling3150media landscape. Clearly, fan demand for sports isn't slowing down any3151time soon. But as I highlighted in my opening statement, it is3152important to ensure that rising costs for sports content don't come at3153the expense of the fan experience.31543155    Question 1. Where do you see the future of sports media going in3156the next five years?3157    Answer. The media industry is undergoing one of the most dynamic3158periods of change in recent memory, driven largely by technological3159innovation and changing viewing habits. Over the next five years, we3160expect this pace to continue--and potentially accelerate--as emerging3161technologies such as artificial intelligence and virtual reality3162reshape how content is created, distributed, and discovered. These3163forces will introduce new opportunities for personalization,3164interactivity, and engagement, but they also make the broader landscape3165harder to predict.3166    Our new national media arrangements establish an 11-year hybrid3167distribution model involving Disney, NBC Universal, and Amazon. These3168agreements span over-the-air broadcasting, pay television, and3169streaming, striking a balance between serving existing traditional TV3170audiences and reaching digital-native viewers who primarily consume3171content via streaming. This multi-platform strategy ensures broad3172access today while positioning us to adapt as consumption habits3173continue to evolve.31743175    Question 2. What is your league doing to maximize access to fans3176who subscribe to your streaming services?3177    Answer. To maximize access for streaming subscribers, every3178nationally televised NBA game will be available on broadly distributed3179platforms: Amazon Prime Video, Peacock, and ESPN's forthcoming direct-3180to-consumer service. For example, Prime Video--our sole streaming-only3181partner--already reaches over 100 million U.S. households (almost two-3182times the number of any cable network) and nearly 90 percent of NBA3183fans already view non-NBA programming on Prime Video.3184    Beyond availability, streaming offers consumers enhanced viewing3185experiences. Fans will have greater access to personalized features3186such as advanced statistics, immersive camera angles, and customizable3187audio or language options, which provide greater control over how they3188watch NBA games.3189    To improve discoverability, we are working with all our media3190partners to enable the NBA App and other league and team platforms to3191serve as universal entry points for national and local game telecasts.3192Whether checking scores or trying to locate a telecast, fans can open3193the NBA App and be directed to the appropriate streaming platform3194seamlessly.31953196    Sports Broadcasting Act and Antitrust Protections. The Sports3197Broadcasting Act of 1961 grants antitrust exemptions to the major3198professional leagues, allowing their teams to pool media rights and use3199their market power to negotiate broadcasting deals. The leagues have3200benefited from this legal exemption, yet as we see more fragmentation3201in the media landscape, due in large part to the rise of streaming3202platforms, it seems consumers are left behind, whether it's blackouts3203in the local market or subscriptions that still don't get you the games3204you expect to watch.32053206    Question 1. An antitrust exemption is extremely valuable to the3207leagues. Why should the government continue to grant these3208extraordinary legal protections to leagues?3209    Answer. Consumers benefit in a variety of ways when a sports league3210negotiates for the nationwide distribution of game telecasts pursuant3211to the SBA. Among other things, such agreements promote the3212availability of some of the league's most attractive games to the3213widest possible audience, incentivize innovative and high-quality3214telecasts, and help build and maintain nationwide fan interest for the3215league. In addition, because the revenue from the league's sale of3216nationwide rights is divided equally among all the league's teams, a3217league's ability to negotiate national agreements promotes competitive3218balance and the existence of a more entertaining, fan-friendly product.3219                                 ______32203221   Response to Written Questions Submitted by Hon. Amy Klobuchar to3222                             William Koenig32233224Topic: Local Broadcasters3225    Local broadcasters are trusted community members that can help3226reach, build, and sustain a fanbase. In turn, the revenues from marquee3227sporting events allow broadcasters to continue to invest in local3228newsrooms and their communities. But streaming risks upending this3229relationship.3230   How do you plan on continuing to leverage local broadcasting3231        to reach NBA and WNBA fans?3232    Answer. Bringing game telecasts to our fans is of critical3233importance to the NBA and WNBA. Our teams continually seek to optimize3234the distribution of their local telecasts, through both traditional3235linear television (including broadcast) channels and streaming3236services.3237    In recent years, teams with games telecast on RSNs have been3238significantly adversely affected by ``cord cutting,'' carriage3239disputes, and repositioning of RSNs to more expensive, lesser-3240penetrated programming tiers. In response, a number of teams have3241shifted from RSNs to a combination of local over-the-air broadcasts and3242digital direct-to-consumer distribution for their game telecasts. In3243each such case, teams have been able to reach more fans. In fact, this3244season there were more local game telecasts available on free over-the-3245air stations (570) than at any time in the last 20 years. Twenty-one of3246our 29 domestic teams distributed games on broadcast stations this3247season (compared to just one team only three years ago). Additionally,3248next season the number of nationally televised games on free, over-the-3249air broadcast networks will increase fivefold, from 15 to 75. The3250number of playoff games on broadcast will also double, including every3251game of the NBA Finals.3252                                 ______32533254   Response to Written Questions Submitted by Hon. Maria Cantwell to3255                             John Bergmayer32563257    Public Media. As I mentioned in my opening statement, while the3258topic of this hearing is sports broadcasting, I would be remiss if I3259did not use this opportunity to draw attention to the illegal attacks3260the week of April 28th by the current Administration on local public3261broadcast stations across this country.3262    Public broadcasting and the non-partisan, non-profit Corporation3263for Public Broadcasting serve a critical role by supporting local3264newsrooms, developing children's and educational programming, and3265keeping Americans safe with emergency alerts.3266    On May 1, the President signed an Executive Order to defund3267National Public Radio and the Public Broadcasting Service. But the3268actions targeting the Corporation for Public Broadcasting that the3269Administration intends to use to inflict pain on NPR and PBS harm the3270local broadcast stations that partner with these organizations. The3271community service grants issued by CPB to the individual public3272stations can account for 30 to 70 percent of a station's operating3273budget.32743275    Question 1. Mr. Bergmayer, how will the Administration's actions3276harm public television and radio stations across the country?3277    Answer. The fact is, most of the funds from CPB don't go to NPR and3278PBS's national organization, but to over a thousand locally-owned3279stations. The cut in funding directly impedes journalists' ability to3280serve the public interest, whether through reporting on local news, or3281sharing public safety information.32823283    Question 2. What will be the impact on the public, particularly in3284rural regions?3285    Answer. The local news crisis continues to worsen, and the harms3286are even more pronounced in rural areas of America. Cutting this3287funding will expand news deserts, impeding access to crucial3288information, especially as a stopgap or fail-safe for emergency3289broadcasts. It also means cutting free educational programs for young3290kids, like Reading Rainbow. Such an educational program is especially3291important for children in rural and underserved communities, where3292alternative educational resources are scarce.3293    Public broadcasting stations contribute to local economies by not3294only employing local journalists and support staff, but also by3295supporting local businesses through content production and features.3296Without funding, many local stations will downsize or shutter,3297threatening livelihoods of its staff.32983299    Public Media and Local Journalism. Grants from CPB support nearly3300400 public radio stations across the country, which employ nearly 9,8003301people, including 3,000 local journalists, editors, and producers. With3302their signal reach, particularly in rural areas, public radio stations3303can help to slow the spread of ``news deserts,'' or areas that have no3304source of local news.3305    Of the 204 ``news desert'' counties identified by the State of3306Local News Project, 67 are served by local public radio signals.3307Newsrooms have lost over 60 percent of their newsroom employees over3308the last two decades. Meanwhile, public radio has added 900 local3309newsroom employees since 2012.33103311    Question 1. How does public media enhance local journalism?3312    Answer. With the rapid decline in number of U.S. newspapers, public3313media fills some important gaps in providing essential coverage,3314particularly for local issues. Public radio and television stations3315anchor communities, delivering reporting on local government, schools,3316public healthy, housing policy, and more. Local journalism is also3317crucial for the democratic process, providing integral information for3318communities to participate in elections.3319    Because public media do not need to rely on advertising or rapid3320story turnarounds for funding, they can invest time in long-form3321journalism, documentaries, and investigations, bringing to light3322systemic issues, like broadband inequality or voting access.33233324    Question 2. What role do local public broadcasters play in3325informing their communities?3326    Answer. Local public broadcasters provide critical coverage of3327local events, government proceedings, and emergency alerts. Stations3328rely on CPB funds not only for news reporting, but also for emergency3329alert infrastructure. Without CPB funding, Americans in underserved3330areas may lack access to these essential services, leaving communities3331without timely and reliable information during emergencies, especially3332natural disasters.33333334    Local Broadcast. It's no secret that local broadcasters are3335struggling in the changing marketplace. This means fewer resources for3336local content, including vital sources of local journalism. This is3337partly due to less advertising revenue for local stations. Sports are3338often the most attractive programming for advertisers.33393340    Question 1. If more sports were added to broadcast TV, wouldn't3341that lead to more revenue for other important functions that local3342broadcast serves?3343    Answer. Yes, that is likely correct. Often, popular content such as3344local sports generates ad revenue for broadcasters that can be used to3345support vital services such as local journalism, and emergency alerts.3346Viewers tuning in to local broadcasters for sports are also more likely3347to view this content more.33483349    Rising Costs to Consumers. We've seen media consumption trends3350shift over the past decade-plus towards streaming, with more and more3351households cutting the cord in favor of online platforms. Sports is no3352exception: a report released recently finds that 58 percent of viewers3353report watching sports on the go via streaming.3354    A survey from 2024 also found that younger viewers are more likely3355to pay to access content from their favorite teams or leagues. Yet the3356deals these professional leagues have signed often require two, three,3357or sometimes four separate subscriptions to access games either3358exclusively online or out-of-market.33593360    Question 1. Has the variety of streaming services driven up costs3361for consumers?3362    Answer. The advantage of streaming is that viewers can pick and3363choose what services they subscribe to, and can more easily subscribe3364and unsubscribe to services based on the availability of content than3365they could, for instance, drop or re-subscribe to a premium cable3366channel. This is a major advantage over one-size-fits-all cable3367bundles.3368    However, as the number of services has risen, and the cost of3369subscriptions for each service has trended upward, some viewers may not3370be saving money, especially if they are attempting to have access to3371the same array of content they might have had access to via a cable or3372satellite subscription.3373    According to data from Leichtman, the average number of SVoD/DTC3374services per household has risen to 4.1 (up from 2.9 in 2020), with3375younger adults aged 18-44 subscribing to 5.1 services on average,3376compared to 3.7 for those aged 45-64 and 2.2 for those 65 and older.\1\3377Deloitte has found that ``US households are spending more on streaming3378video subscriptions, but they may be reaching their limits. On average,3379U.S. subscribing households spend US$61 per month on four SVOD3380services. Additionally, 68 percent of consumers surveyed pay for either3381a TV subscription or live streaming TV to not only access content not3382available on streaming video, but also streamline billing for both3383broadband and TV and access SVOD through their pay TV service. For many3384U.S. households, it may be getting more expensive to watch TV and films3385at home.'' \2\3386---------------------------------------------------------------------------3387    \1\ Research: 83 percent U.S. Homes Have 'Big 3' SVoD, Advanced3388Television (Aug. 10, 2023), https://www.advanc Streaming video at a3389crossroads: Redesign yesterday's models or reinvent for tomorrow?,3390Deloitte (March 20, 2024), https://www2.deloitte.com/us/en/insights/3391industry/technology/digital-media-trends-consumption-habits-survey/33922024/customization-and-personalization-lead-the-svod-revolution.htmled-3393television.com/2023/08/10/research-83-us-homes-have-big-3-svod/3394    \2\ Deloitte, Streaming video at a crossroads: Redesign yesterday's3395models or reinvent fortomorrow? (March 20, 2024),https://3396www.deloitte.com/us/en/insights/industry/technology/digital-media-3397trends-consumptionhabits-survey/2024/customization-and-personalization-3398lead-the-svod-revolution.html3399---------------------------------------------------------------------------3400    While an abundance of choice is not a bad thing, viewers might3401object especially when content that used to be available on one service3402migrates to a new one, especially when they now have to subscribe to3403multiple services just to keep accessing the same things.3404    This is especially notable with sports. Most people want to watch a3405particular team, and a particular sport, not ``sports'' in general.3406When a sport, and a team's games, are split across multiple services,3407sports fans are more likely to have to subscribe to multiple services3408to avoid missing games. (And as games are time sensitive, people3409sometimes find out they can't access a particular game right as it's3410about to air.) Finally, with sports, viewers are more likely to3411subscribe to a comparatively expensive vMVPD or MVPD service (starting3412at around $90/month).3413    Of course, all categories of programming are split across different3414services. But the situation with sports is like if most episodes of a3415popular TV show were carried exclusively on Paramount+, with a few3416``very special'' episodes on Netflix with the season finale on HBO Max.3417In addition to being costly, it's annoying.34183419    Question 2. Are there benefits for consumers that are looking for3420more a la carte or individualized sports packages that streaming can3421offer?3422    Answer. Yes, the flexibility that streaming allows allows for3423offerings that were not possible before-unlike with cable or satellite,3424the primary bottlenecks are economic, as there are no last-mile3425bandwidth limitations.3426    Fans of niche sports, and fans of out-of-market teams, in3427particular have more access than they did before streaming.34283429    Sports Broadcasting Act and Antitrust Protections. The Sports3430Broadcasting Act of 1961 grants antitrust exemptions to the major3431professional leagues, allowing their teams to pool media rights and use3432their market power to negotiate broadcasting deals. The leagues have3433benefited from this legal exemption, yet as we see more fragmentation3434in the media landscape, due in large part to the rise of streaming3435platforms, it seems consumers are left behind, whether it's blackouts3436in the local market or subscriptions that still don't get you the games3437you expect to watch.34383439    Question 1. What impact does the Sports Broadcasting Act have on3440out-of-market viewership?3441    Answer. By allowing teams to pool broadcast rights, we see less3442innovation and experimentation in how sports programming is offered-and3443establishes patterns that are followed with streaming deals. For3444example, out-of-market MLB games are available through services from3445MLB itself: teams that offer their own streaming packages or add-ons3446generally restrict them to their home market.34473448    Question 2. Should Congress consider policies to improve access for3449consumers in light of increased streaming competition?3450    Answer. I think the best place for policymakers to focus is to make3451sure that viewers can access in-market games for free (and supported by3452ads) over local broadcast, or via streaming services limited to their3453own market. This is a fair tradeoff for the antitrust exemptions and3454stadium and tax deals sports benefits from, and strengthens a team's3455ties to its local community. With respect to the question about out-of-3456market fans above, I have no problem with teams or leagues offering3457those as subscription products, but they should be simple, and3458preferably one-stop-shops, so that viewers don't need a whole new3459service when their team is carried nationally or makes the playoffs.34603461    Broadband Competition and Affordability. The rise of streaming3462services means that more sports than ever before are available to3463watch. For example, during the 2024 Paris Olympics, every sport, no3464matter how obscure, and every heat, preliminary round, or trial was3465available to watch--mostly on streaming. However, the benefits of3466streaming are unevenly shared.3467    Millions of Americans still lack access to affordable, reliable3468broadband. According to the National Telecommunications and Information3469Administration's Internet Use Survey, one-sixth of households in this3470country don't use the Internet at all.34713472    Question 1. Mr. Bergmayer, how can Congress and the Administration3473increase competition and affordability in the broadband market and make3474sure that everyone is connected?3475    Answer. Congress and the administration can implement a variety of3476legislative and regulatory reforms to enhance competition and3477affordability in broadband markets. In particular, they should3478prioritize policies that open broadband and spectrum markets to non-3479traditional providers, enforce antitrust laws rigorously, and ensure3480robust, long-term Internet affordability support.3481    First, Congress should act swiftly to reintroduce and pass the3482Community Broadband Act, which would prohibit states from enacting laws3483that ban or restrict municipalities from building their own broadband3484networks. These networks--whether municipally operated or developed3485through public-private partnerships--fill critical gaps where private3486ISPs have failed to invest or where competition is too weak to deliver3487high-quality, affordable service. Even in areas with existing3488incumbents, community-led networks exert essential competitive pressure3489that drives down prices and improves service.3490    Additionally, as broadband increasingly relies on wireless3491technologies that require access to spectrum, it's imperative that3492spectrum allocation be made more equitable. Spectrum policy has long3493favored the largest wireless carriers, creating steep barriers for non-3494traditional providers such as Tribal Nations, community-based3495nonprofits, and small ISPs. Congress and the FCC should prioritize3496policies that preserve and expand shared access to mid-band spectrum--3497particularly through frameworks like the Citizens Broadband Radio3498Service (CBRS)--and set aside dedicated spectrum windows for Tribal3499communities, or allow for more flexible, low-cost leasing. These3500reforms would unlock community-driven broadband solutions that promote3501local job growth, technical innovation, and equitable connectivity.3502    When paired with strong antitrust enforcement and thorough merger3503review by the FCC and DOJ, these measures can serve as a critical check3504on the market power that leads to high prices, limited choice, and3505underinvestment in service.3506    With respect to more direct affordability measures, the expiration3507of the Affordable Connectivity Program (ACP) and rising broadband3508prices underscore the urgent need for a sustainable, long-term3509broadband support. The most viable path forward is to reform the3510Universal Service Fund (USF) by modernizing the program and expanding3511its contribution base to ensure that it is sustainably and equitably3512funded. Congress and the FCC should specifically reimagine the Lifeline3513program, which currently offers only $9.25/month for broadband, by3514applying key lessons from the ACP. At a minimum, these should include3515increasing the monthly benefit to meaningful levels such as the ACP's3516tiered $30/$75 (standard/high-cost area) subsidies, indexing it to3517inflation, and expanding eligibility to better reflect current income3518and access realities. The USF is an appropriate vehicle for a policy3519designed to ensure universal access, and reforming it will ensure that3520these critical affordability initiatives are housed in a durable,3521stable funding framework.3522                                 ______35233524   Response to Written Questions Submitted by Hon. Amy Klobuchar to3525                             John Bergmayer35263527Topic: Cost of Streaming3528    For an NFL fan to watch every single game last season, they would3529have needed some combination of Peacock, Amazon Prime Video, Netflix,3530E-S-P-N Plus, YouTube T-V, and N-F-L Sunday Ticket--costing over $8503531for the 2024 season alone. While I recognize the benefits of streaming,3532these costs add up and are out of reach for too many Americans.35333534   Is the current landscape sustainable, especially as3535        Americans face rising costs across the economy?3536    Answer. I do not think the fragmentation of leagues and teams3537across multiple services (where multiple subscriptions are necessary,3538as opposed to multiple services with comparable offerings) is3539sustainable. It's in the best interests of leagues themselves as well3540as viewers for there to be one-stop shops where all of a team's games3541are available. This is not just a cost issue, though as I have3542mentioned in other answers and in my written and oral testimony, costs3543are substantial. Things like keeping track of subscriptions and where3544they are managed, keeping track of log-ins, keeping multiple devices3545updated with a variety of apps, and then finally figuring out where a3546game is actually available that day, impose costs on consumers of a3547different kind.3548Topic: Sports Streaming Venture3549    Last year, Disney, Warner, and Fox Sports called off a proposed3550joint venture focused on streaming sports content due to antitrust3551concerns. I want to ensure sports fans can easily stream the sports3552they love but I also want those consumers to benefit from the low3553prices and innovation that comes from competition.35543555   How can we ensure that streaming sports is convenient for3556        fans while also preserving competition among content3557        distributors and the leagues?3558    Answer. Sports content is valuable, but should not be used as an3559economic weapon by major video distributors to lock out competition.3560Among other issues, the proposed joint venture might have been the3561exclusive way to access some sports content. In the traditional MVPD3562space, program access and program carriage rules prevented major cable3563companies from using their market power to lock up content and3564disadvantage their rivals-a threat that is particularly pronounced with3565less-substitutable content such as sports programming.35663567                                  [all]