Netflix, Amazon, and YouTube have entered an alliance as a pushback against Washington.
Reportedly, Washington is questioning the trend where streaming platforms are taking over traditional broadcasting of key sports events.
Netflix, Amazon and YouTube form the Streaming Access and Choice Alliance amid federal scrutiny of sports broadcasting rights
As originally reported by Axios, Netflix, Amazon, and YouTube have entered the Streaming Access and Choice Alliance (SACA) to combat Washington’s scrutiny of sport broadcasting rights. The coalition will be led by TechNet, a trade association representing major technology companies.
TechNet told Axios that SACA will promote “technology-neutral policies that encourage innovation in entertainment.” This will include measures to continue investing in live sports and other programming. However, their operations may not be as smooth as imagined.
The alliance comes as Justice Department and Federal Communications Commission considers whether the Sports Broadcasting Act of 1961 should be revisited. The law gives professional sports leagues an antitrust exemption. This allows them to pool and collectively sell their television rights.
In fact, FCC Chairman Brendan Carr has questioned whether the exemption is triggering the migration of broadcasting rights from traditional cable to streaming platforms under paywalls.
If the scrutiny is actionated, the three platforms can be exposed for their high stakes in the matter. Currently, Amazon carries the NFL’s “Thursday Night Football.” Additionally, YouTube has the league’s Sunday Ticket package. Netflix, on the other hand, has expanded its sports programming to include NFL games. These conditions have enabled the companies to be major decision-makers for sports leagues. Also, they have become serious and direct competitors of legacy networks.
However, SACA is not the first attempt to unify forces by streaming platforms. The three mentioned platforms earlier belonged to the Internet Association, a technology lobby group that closed operations in 2021. Additionally, Netflix also joined the Motion Picture Association in 2019, reflecting the power it has as a major Hollywood studio.
This story originally appeared on Realitytea
