NEW YORK (TheStreet) -- The Federal Communications Commission is proposing an end to the TV sports blackout rule that prevents some sports fans from seeing local sports teams.
The blackout rule prevents cable and satellite companies from broadcasting games of professional sports teams if too few fans purchase tickets to see the games live in the stadium. The FCC may strike the rule in the near future. Senators John McCain and Richard Blumenthal recently introduced a bill that would get rid of the rule as well.
Striking the blackout rule would help 21st Centruy Fox (FOXA), ABC (DIS), and CBS (CBS), which would normally be blocked from airing the games. It could also benefit pay-TV companies such as Dish (DISH), DirectTV (DTV), Time Warner Cable (TWX), Comcast (CMCSA), and Charter (CHTR). It could potentially take an advantage away from some of those pay-TV services, however, which sell expensive sports packages to their customers.
TheStreet Ratings team rates TWENTY-FIRST CENTURY FOX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TWENTY-FIRST CENTURY FOX INC (FOXA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."