Jalen Brunson #11 of the New York Knicks drives to the basket in the course of the recreation in opposition to the Indiana Pacers throughout Round 2 Game 1 of the 2024 NBA Playoffs on May 6, 2024 at Madison Square Garden in New York City, New York.
Nathaniel S. Butler | National Basketball Association | Getty Images
Altice USA prospects misplaced entry to MSG Networks early Wednesday as a result of a carriage dispute between the cable TV operator and James Dolan’s regional sports activities channels.
Customers of Altice USA’s Optimum cable TV service misplaced entry to the NBA’s New York Knicks and the NHL’s New York Rangers, New York Islanders and New Jersey Devils early Wednesday. The blackout comes because the Knicks are on an eight-game win streak and are slated to play Wednesday night.
Negotiations between Altice USA and MSG Networks broke down as a result of a dispute over charges — typically the case in these discussions. The blackout reveals the persevering with struggles for regional sports activities networks as prospects go away the cable TV bundle at a quick clip, and operators push again on excessive charges.
Both Altice USA and MSG Networks every issued statements early Wednesday concerning the dispute.
“We provided Altice plenty of honest and affordable proposals that referred to as for Altice to pay us lower than final 12 months,” in accordance with a MSG Networks statement. “Altice rejected all of them, together with our provide to maintain MSG Networks on the air whereas we continued to attempt to attain a deal. We stay prepared to barter in good religion.”
However, Altice USA mentioned in a statement that “MSG Networks is demanding exorbitant programming charges – which may increase our prospects’ cable payments – and, so as to add insult to damage, MSG Networks is requiring us to make their channels out there to the overwhelming majority of Optimum video subscribers, which might pressure prospects to pay for content material they don’t to look at.”
Altice USA famous MSG Networks’ streaming choices for purchasers that also need entry to their groups.
New York-based Altice USA had greater than 1.9 million residential cable TV prospects as of Sept. 30, after dropping about 77,000 in comparison with the identical quarter within the earlier 12 months.
The regional sports activities networks enterprise has been severely affected by the patron change from conventional cable TV bundles to streaming choices. In 2024 Diamond Sports, the proprietor of the most important portfolio of those networks, won court approval to exit chapter safety after it was suffering from the identical headwinds.
Like different regional sports activities networks, MSG Networks launched a streaming choice in 2023 priced at $29.99 a month. In 2024 MSG Networks teamed up with the YES Network, which options native video games for the New York Yankees, for a mixed providing referred to as the Gotham Sports app, which prices $359.99 yearly or $41.99 a month.
The excessive costs of those streaming choices present the regional sports activities networks should be cautious to not additional disrupt the cable TV mannequin and breach contracts with distributors. These contracts with cable TV operators assist assist the billions of {dollars} in charges the networks pay skilled sports activities groups to air their video games.
