Written by Brett L. Sappington, Director of Research

In a move that will be welcome by home fans throughout the nation, the NFL announced that it will be changing its television blackout rules. Previously, broadcasters and pay-TV providers could not broadcast local games unless the local team sold out the stadium in advance of game time (or the NFL granted an exception). The NFL has changed this policy to where teams can opt to lower the sell out threshold to 85% of the seats rather than the full 100%.

So, why the largesse from the NFL? According to the NFL, the number of games affected by the rule has declined over the past 20 years. In the previous season, only 6% of games were impacted. However, the interests of TV rights holders likely had an impact as well. Broadcasters and pay TV providers pay increasing billions for broadcast rights and make billions from pay TV subscribers and advertisers. You can bet that they want to reach as many fans as possible to maximize that revenue, particularly in home markets where fans are more likely to tune into the home team rather than two teams from remote markets.

In another boon to the digital consumer, the NFL will be adding Wi-Fi to its stadiums to allow consumers to connect, interact with apps, and get replays and real-time game information. Two thoughts:

- Better be a big pipe. Imagine 50,000 phones trying to access the same replay.

- If I have to take out a loan to pay for parking and food at an NFL stadium, what am I going to have to pay for Wi-Fi access?!?