Optimum Announces Update on Carriage Negotiations With Nexstar; Offers Customers Solutions to Keep Watching Their Local Broadcast Stations
Optimum announces the removal of Nexstar's content from its TV lineups effective 5:00PM ET due to failed carriage negotiations. The dispute centers on Nexstar's bundling strategy, requiring Optimum to carry less popular channels like NewsNation (which 90% of customers don't watch) alongside local broadcast stations. Nexstar rejected Optimum's extension offer and demands the highest broadcasting group rates.
The cable provider criticizes Nexstar's 'all or nothing' approach, which forces customers to pay for unwanted content and bundles stations across different states. Optimum argues this strategy is anti-consumer and detrimental to local programming. The company remains open to negotiations while providing alternative solutions for customers to access Nexstar-owned content, including over-the-air antenna options.
Optimum annuncia la rimozione dei contenuti di Nexstar dalla sua offerta TV a partire dalle 17:00 ET a causa di trattative di trasmissione fallite. La disputa si concentra sulla strategia di raggruppamento di Nexstar, che richiede a Optimum di includere canali meno popolari come NewsNation (che il 90% dei clienti non guarda) accanto alle stazioni locali. Nexstar ha rifiutato l'offerta di estensione di Optimum e richiede le tariffe più alte del gruppo di trasmissione.
Il fornitore di cavi critica l'approccio 'tutto o niente' di Nexstar, che costringe i clienti a pagare per contenuti indesiderati e raggruppa stazioni provenienti da diversi stati. Optimum sostiene che questa strategia è anti-consumatore e dannosa per i programmi locali. L'azienda rimane aperta a negoziazioni, offrendo nel contempo soluzioni alternative per consentire ai clienti di accedere ai contenuti posseduti da Nexstar, comprese le opzioni di antenna terrestre.
Optimum anuncia la eliminación del contenido de Nexstar de su programación televisiva a partir de las 5:00 PM ET debido a negociaciones de transmisión fallidas. La disputa gira en torno a la estrategia de agrupación de Nexstar, que exige a Optimum incluir canales menos populares como NewsNation (que el 90% de los clientes no ve) junto a las estaciones de transmisión locales. Nexstar rechazó la oferta de extensión de Optimum y exige las tarifas más altas del grupo de transmisión.
El proveedor de cable critica el enfoque 'todo o nada' de Nexstar, que obliga a los clientes a pagar por contenido no deseado y agrupa estaciones de diferentes estados. Optimum sostiene que esta estrategia es anti-consumidor y perjudicial para la programación local. La empresa se mantiene abierta a negociaciones al tiempo que ofrece soluciones alternativas para que los clientes accedan al contenido de Nexstar, incluidas las opciones de antena aérea.
Optimum은 TV 편성에서 Nexstar의 콘텐츠를 5:00 PM ET부터 삭제한다고 발표했습니다. 이는 방송 협상이 실패했기 때문입니다. 논쟁은 Nexstar의 번들 전략을 중심으로 진행되며, Optimum은 고객의 90%가 보지 않는 NewsNation과 같은 덜 인기 있는 채널을 지역 방송사와 함께 포함해야 합니다. Nexstar는 Optimum의 연장 제안을 거부하고 가장 높은 방송 그룹 요금을 요구하고 있습니다.
케이블 제공업체는 Nexstar의 '모두 아니면 아무것도' 접근 방식을 비판하며, 이로 인해 고객이 원치 않는 콘텐츠에 대해 비용을 지불해야 하고 다양한 주에서의 방송을 번들로 묶어야 한다고 주장합니다. Optimum은 이 전략이 소비자에 반하고 지역 프로그램에 해롭다고 주장하고 있습니다. 회사는 Nexstar 소유의 콘텐츠에 접근할 수 있는 대안적인 솔루션을 제공하는 동안 협상에 열려 있습니다. 이에는 공중파 안테나 옵션이 포함됩니다.
Optimum annonce le retrait du contenu de Nexstar de ses offres TV à partir de 17h00 ET en raison d'échecs dans les négociations de diffusion. Le litige porte sur la stratégie de regroupement de Nexstar, qui oblige Optimum à inclure des chaînes moins populaires comme NewsNation (que 90 % des clients ne regardent pas) aux côtés des stations locales. Nexstar a rejeté l'offre de prolongation d'Optimum et exige les tarifs les plus élevés du groupe de diffusion.
Le fournisseur de câble critique l'approche 'tout ou rien' de Nexstar, qui oblige les clients à payer pour des contenus non désirés et regroupe des stations de différents états. Optimum soutient que cette stratégie est anti-consommateur et nuisible à la programmation locale. L'entreprise reste ouverte aux négociations tout en proposant des solutions alternatives pour permettre aux clients d'accéder au contenu détenu par Nexstar, y compris des options d'antenne terrestre.
Optimum gibt bekannt, dass der Inhalt von Nexstar ab 17:00 Uhr ET aufgrund gescheiterter Übertragungsverhandlungen aus seinem TV-Angebot entfernt wird. Der Streit dreht sich um die Bündelungsstrategie von Nexstar, die Optimum dazu zwingt, weniger beliebte Kanäle wie NewsNation (das 90% der Kunden nicht ansehen) zusammen mit lokalen Rundfunkstationen anzubieten. Nexstar hat das Verlängerungsangebot von Optimum abgelehnt und fordert die höchsten Tarife von Broadcast-Gruppen.
Der Kabelanbieter kritisiert die 'alles oder nichts'-Einstellung von Nexstar, die die Kunden dazu zwingt, für unerwünschte Inhalte zu bezahlen und Sender aus verschiedenen Bundesstaaten zu bündeln. Optimum argumentiert, dass diese Strategie verbraucherfeindlich und nachteilig für lokale Programmierungen ist. Das Unternehmen bleibt offen für Verhandlungen und bietet gleichzeitig alternative Lösungen an, damit die Kunden auf die Inhalte von Nexstar zugreifen können, einschließlich Optionen für Übertragungsantennen.
- None.
- Loss of multiple broadcast stations from Optimum TV lineup
- Potential subscriber dissatisfaction and churn risk
- Higher content costs if forced to accept Nexstar's demands
- 90% of customers (over 1.2 million) never watch NewsNation, yet may have to pay for it
Insights
The carriage dispute between Optimum and Nexstar represents a critical shift in the pay-TV landscape. This blackout affects Optimum's parent company Altice USA (ATUS), potentially impacting subscriber retention in a market already challenged by cord-cutting. The dispute centers on bundling practices and pricing demands, particularly concerning NewsNation's forced carriage despite 90% of customers (over 1.2 million subscribers) never watching the channel.
The timing is particularly challenging for ATUS, as it comes amid increasing competition from streaming services and declining traditional TV subscriptions. The dispute could accelerate subscriber losses and negatively impact revenue streams. Historical data shows that prolonged carriage disputes typically result in a 1-2% subscriber churn rate, which could translate to meaningful financial impact for ATUS given its current market position.
For investors, this development signals potential near-term pressure on ATUS stock. The company's bargaining position appears weakened by its already struggling video business segment and high debt levels. The dispute's resolution will likely result in higher programming costs, which could either squeeze margins if absorbed by ATUS or accelerate subscriber losses if passed to customers.
This dispute exemplifies the broader structural challenges facing traditional cable operators. The conflict over NewsNation's forced bundling, despite minimal viewership, highlights the unsustainable nature of current content distribution models. The market implications extend beyond immediate subscriber concerns to fundamental questions about ATUS's business model viability.
Key metrics reveal troubling patterns: With over 1.2 million subscribers never watching NewsNation, yet Nexstar demanding expanded distribution, the misalignment between content costs and consumer value becomes evident. The dispute's impact on ATUS's competitive position is particularly concerning given the company's relatively small market cap of $1.11 billion and negotiating leverage against large broadcasting groups.
The situation could catalyze accelerated cord-cutting, as consumers discover alternative content delivery methods during the blackout. This behavioral shift typically becomes permanent for a significant portion of affected subscribers, creating a long-term headwind for ATUS's traditional cable business model.
Optimum Customers Can Visit Optimum.com/Nexstar for Details
Optimum offered an extension to keep Nexstar’s content on the air while we continued to negotiate to reach a fair deal for our customers, but Nexstar refused.
Optimum issues the following statement on its carriage negotiations with Nexstar and customer-friendly options available to Optimum customers:
“Unfortunately, Nexstar is using an anti-consumer negotiation tactic – tying local channels to less popular ones – requiring Optimum and its customers to pay for channels like NewsNation, which has essentially no viewership, in order to continue carrying Nexstar broadcast stations in various markets across the country.
To illustrate the absurdity of this demand, we note that in any given month,
Plus, Nexstar is demanding exorbitant rates, the highest of any broadcasting group.
Nexstar’s "all or nothing" approach of price gouging customers by forcing them to pay for content they don’t want and bundling different stations and channels together into the same negotiations – despite their varied programming and audiences across different states – is in no one’s best interest but their own.
Optimum values local programming and understands that viewers in
We remain open to continued negotiations with Nexstar to reach a fair new deal to restore their programming on Optimum TV lineups. In the meantime, customers who are looking to watch Nexstar-owned content can continue to do so for free over the air with an antenna or visit www.optimum.com/nexstar to learn more about the solutions Optimum is making available.”
Steps for Customers to Take:
- Customers can rest assured – Optimum has video solutions so that customers can continue watching ABC, NBC, FOX, CBS and/or the CW. Chat with us or go to www.optimum.com/nexstar to learn more.
- Consumer viewing habits have changed dramatically over the last few years and gone are the days of one-size-fits-all content packages, so Optimum is tailoring its offerings to meet customer needs individually. Optimum brings consumers a wide range of options that provide choice, flexibility and value.
- Optimum teams are ready to help customers find the best packages for them. Call us at 866-347-4784, chat with us or visit www.optimum.com/nexstar to learn more.
About Optimum
Optimum is a brand of Altice USA, one of the largest broadband communications and video services providers in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250110584837/en/
Media:
Heather Besler
(631) 660-8321
Heather.Besler@optimum.com
Erin Smyth
(917) 565-2480
Erin.smyth@optimum.com
Source: Altice USA
FAQ
What channels are affected by the Optimum-Nexstar dispute in 2024?
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Why did Nexstar remove their channels from Optimum?
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