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 Spherical 2 Sport 1 of the 2024 NBA Playoffs on Could 6, 2024 at Madison Sq. Backyard in New York Metropolis, New York.
Nathaniel S. Butler | Nationwide Basketball Affiliation | Getty Photos
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.
Clients 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 exhibits the persevering with struggles for regional sports activities networks as prospects depart the cable TV bundle at a quick clip, and operators push again on excessive charges.
Each Altice USA and MSG Networks every issued statements early Wednesday relating to the dispute.
“We supplied Altice numerous honest and cheap proposals that known as for Altice to pay us lower than final yr,” in line with a MSG Networks assertion. “Altice rejected all of them, together with our supply to maintain MSG Networks on the air whereas we continued to attempt to attain a deal. We stay prepared to barter in good religion.”
Nonetheless, Altice USA stated in a assertion that “MSG Networks is demanding exorbitant programming charges – which might elevate our prospects’ cable payments – and, so as to add insult to harm, 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 patrons 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 yr.
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 activities, the proprietor of the largest portfolio of those networks, gained courtroom approval to exit chapter safety after it was tormented by 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 Community, which options native video games for the New York Yankees, for a mixed providing known as the Gotham Sports activities 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.
