Optimum Demands MSG Networks Refund Customers Upwards of $125 Million
Optimum has demanded MSG Networks refund customers approximately $125 million amid ongoing carriage negotiations and programming blackout affecting Knicks, Rangers, Islanders, and Devils games. The dispute centers on MSG Networks' pricing model, with Optimum claiming that nearly 50% of customers didn't watch MSG channels in 2024 yet were forced to pay.
The company criticizes MSG Networks for charging $30 per month for their Gotham Sports app, triple the $10 monthly value MSG Networks claims their content is worth. Optimum argues that MSG Networks is prioritizing profits over accessibility, highlighting the programmer's refusal of multiple negotiation attempts and potential connection to increasing the Sphere's share price.
Optimum continues to offer alternative viewing solutions, including assistance with Gotham Sports subscriptions and new video offerings starting at $30 per month for non-sports fans.
Optimum ha richiesto a MSG Networks di rimborsare ai clienti circa 125 milioni di dollari in seguito a trattative di trasmissione in corso e un blackout della programmazione che ha interessato le partite di Knicks, Rangers, Islanders e Devils. La controversia si concentra sul modello di pricing di MSG Networks, con Optimum che sostiene che quasi il 50% dei clienti non ha guardato i canali MSG nel 2024, ma è stato costretto a pagare.
La compagnia critica MSG Networks per aver addebitato 30 dollari al mese per la loro app Gotham Sports, tre volte il valore mensile di 10 dollari che MSG Networks afferma valga il loro contenuto. Optimum sostiene che MSG Networks stia dando priorità ai profitti piuttosto che all'accessibilità, mettendo in evidenza il rifiuto da parte del programmador di molteplici tentativi di negoziazione e un potenziale collegamento all'aumento del prezzo delle azioni della Sphere.
Optimum continua a offrire soluzioni alternative per la visione, inclusa assistenza con gli abbonamenti a Gotham Sports e nuove offerte video a partire da 30 dollari al mese per i non appassionati di sport.
Optimum ha exigido a MSG Networks que reembolse a los clientes aproximadamente 125 millones de dólares en medio de negociaciones de transmisión en curso y un apagón de programación que afecta los juegos de Knicks, Rangers, Islanders y Devils. La disputa se centra en el modelo de precios de MSG Networks, con Optimum alegando que casi el 50% de los clientes no vieron los canales MSG en 2024, pero aún así se vieron obligados a pagar.
La compañía critica a MSG Networks por cobrar 30 dólares al mes por su aplicación Gotham Sports, tres veces el valor mensual de 10 dólares que MSG Networks afirma que vale su contenido. Optimum argumenta que MSG Networks está priorizando las ganancias sobre la accesibilidad, destacando la negativa del programador a múltiples intentos de negociación y una posible conexión con el aumento del precio de las acciones de Sphere.
Optimum continúa ofreciendo soluciones alternativas de visualización, incluida la asistencia con suscripciones a Gotham Sports y nuevas ofertas de video a partir de 30 dólares al mes para los que no son aficionados a los deportes.
Optimum은 MSG Networks에 고객에게 약 1억 2500만 달러를 환불할 것을 요구했습니다. 이는 진행 중인 방송 협상과 Knicks, Rangers, Islanders, Devils 경기에 영향을 미치는 프로그램 블랙아웃 때문입니다. 이 분쟁은 MSG Networks의 가격 모델을 중심으로 진행되며, Optimum은 고객 중 거의 50%가 2024년에 MSG 채널을 시청하지 않았으나 여전히 요금을 지불해야 했다고 주장합니다.
회사는 MSG Networks가 Gotham Sports 앱에 대해 월 30달러를 청구하는 것을 비판하며, MSG Networks가 주장하는 콘텐츠의 월 10달러 가치의 세 배라고 밝혔습니다. Optimum은 MSG Networks가 접근성보다는 이익을 우선시하고 있다고 주장하며, 여러 차례의 협상 시도에 대한 프로그래머의 거부와 Sphere의 주가 상승과의 잠재적 연관성을 강조합니다.
Optimum은 Gotham Sports 구독 지원 및 비스포츠 팬을 위한 월 30달러부터 시작하는 새로운 영상 서비스를 포함한 대체 시청 솔루션을 계속해서 제공하고 있습니다.
Optimum a exigé de MSG Networks le remboursement d'environ 125 millions de dollars aux clients en raison de négociations de diffusion en cours et d'une coupure de programme affectant les matchs des Knicks, Rangers, Islanders et Devils. Le différend concerne le modèle de tarification de MSG Networks, Optimum affirmant qu'environ 50 % des clients n'ont pas regardé les chaînes MSG en 2024 mais ont été contraints de payer.
L'entreprise critique MSG Networks pour avoir facturé 30 dollars par mois pour son application Gotham Sports, soit trois fois la valeur mensuelle de 10 dollars que MSG Networks affirme que son contenu vaut. Optimum soutient que MSG Networks privilégie les profits à l'accessibilité, soulignant le refus du programmateur de plusieurs tentatives de négociation et une possible connexion à l'augmentation du cours de l'action de Sphere.
Optimum continue d'offrir des solutions alternatives de visionnage, y compris une assistance pour les abonnements à Gotham Sports et de nouvelles offres vidéo à partir de 30 dollars par mois pour les amateurs de non-sport.
Optimum hat von MSG Networks gefordert, den Kunden etwa 125 Millionen Dollar zurückzuerstatten, während laufende Übertragungsverhandlungen und ein Programmblackout die Spiele von Knicks, Rangers, Islanders und Devils betreffen. Der Streit dreht sich um das Preismodell von MSG Networks, wobei Optimum behauptet, dass fast 50 % der Kunden im Jahr 2024 keine MSG-Kanäle gesehen haben, aber dennoch zahlen mussten.
Das Unternehmen kritisiert MSG Networks dafür, 30 Dollar pro Monat für ihre Gotham Sports-App zu verlangen, was dreimal so viel ist wie der monatliche Wert von 10 Dollar, den MSG Networks für seine Inhalte angibt. Optimum argumentiert, dass MSG Networks Gewinne über die Zugänglichkeit stellt, und hebt die Ablehnung des Programmherstellers an mehreren Verhandlungsversuchen und eine mögliche Verbindung zur Erhöhung des Aktienkurses der Sphere hervor.
Optimum bietet weiterhin alternative Lösungsmöglichkeiten für das Sehen an, einschließlich Unterstützung bei Gotham Sports-Abonnements und neuen Videoangeboten ab 30 Dollar pro Monat für Nicht-Sportfans.
- Optimum is offering new affordable video options starting at $30/month for non-sports fans
- Company is providing solutions to help customers access MSG content through alternative means
- Ongoing blackout of major sports content (Knicks, Rangers, Islanders, and Devils games)
- Potential $125 million customer refund liability
- Loss of significant sports programming content from portfolio
- 50% of customers weren't watching MSG Networks despite paying for it
Insights
The ongoing dispute between Optimum and MSG Networks represents a pivotal moment in the transformation of sports media distribution. The $125 million refund demand and MSG's $30 monthly Gotham Sports app pricing (3x higher than cable distribution costs) highlight the unsustainable nature of the traditional Regional Sports Network (RSN) model.
The conflict's financial implications are substantial: MSG Networks faces potential revenue erosion from both the Optimum blackout and the challenging transition to direct-to-consumer streaming. The 50% non-viewership rate for MSG Networks on Optimum's platform reveals the fundamental flaw in the bundled cable model, where non-sports viewers subsidize sports content. This mirrors similar challenges faced by other RSNs, with several declaring bankruptcy in recent years.
The dispute's timing, coinciding with the $76 billion NBA deal, adds another layer of complexity. The increased national game coverage threatens to further diminish RSN's value proposition, potentially accelerating the model's decline. This could significantly impact MSG Networks' future revenue streams and market position.
This dispute exemplifies a classic disruption scenario in the sports media industry. MSG Networks appears to be executing a calculated but risky strategy: deliberately maintaining high pricing to maximize short-term revenue while potentially sacrificing long-term market share. The triple-pricing strategy for Gotham Sports suggests an attempt to protect legacy revenue streams while transitioning to direct-to-consumer model.
The business implications extend beyond immediate revenue impact. Optimum's aggressive stance, including the unprecedented demand for customer refunds, signals a broader industry shift where distributors are actively pushing back against traditional content pricing models. This could trigger a domino effect, forcing other RSNs to reevaluate their pricing strategies and accelerate the transition to streaming models.
The mention of the Sphere connection raises interesting questions about potential conflicts of interest and strategic priorities within MSG's broader business portfolio. This situation could lead to significant shareholder value implications across multiple MSG-related entities.
Optimum Continues to Help Fans Watch Their Favorite Teams AND Continue to Offer New, Affordable Video Options to Non-Sports Fans
Is MSG Networks Trying to Tank this Deal to Get Customers to Pay Three Times More Through Gotham and Drive Up the Share Price of the Sphere (which he also owns)?
As MSG Networks continues to deflect responsibility for its ongoing blackout of Knicks, Rangers, Islanders, and Devils games, today, Optimum has called on the programmer to refund customers upwards of
Optimum issues the following statement:
“MSG Networks continues to play games with our customers while refusing to engage in meaningful negotiations. MSG Networks needs to take responsibility and issue refunds to subscribers for the programming they did not watch but were forced to pay for in 2024.
MSG Networks has habitually overcharged consumers, first for cable distributed content and now for Gotham Sports, taking what they say is a
At Optimum, our attention is on our customers – we will continue to make sure they have ways to watch MSG Networks’ content, including getting fans signed up for Gotham Sports, driving profits to MSG Networks’ business. If Gotham Sports isn’t of interest, we have other streaming service solutions for customers.
And non-sports fans can call us to talk about our new video offerings that provide choice, flexibility and affordability, and are designed to ensure customers pay for the content they care about.
At the heart of this dispute is MSG Networks, a company prioritizing profits over people. In fact, their owner publicly acknowledged how outdated and unviable their own business model is due to the fragmentation of viewing now that customers have options to get their sports content from various sources. MSG needs to address their core issue: their continued insistence on inflated, mandatory fees that penalize most subscribers to offset their dying business model.
The truth is, sports should unite us, not divide us – we love our local sports teams and will continue to support and cheer them on.”
Additional Information:
-
MSG Networks Viewership on Optimum: Nearly
50% of customers with access to MSG Networks didn't even turn on the channel in 2024 – forcing them to pay is unfair, especially when there are so many ways for fans to get their content.
-
Optimum Loves its
New York and New Jersey Sports Teams: Optimum is a huge fan of the Knicks, Rangers, Devils and Islanders and we will continue to support them and cheer on our local teams. This dispute has nothing to do with the teams — it has everything to do with MSG Networks forcing non-fans to pay for content that they do not watch.
-
MSG Has Admitted to Overcharging Gotham Sports Customers: MSG Networks has publicly acknowledged that they believe their content is worth
$10 $30 $360
-
The RSN Model Is Broken: For years, Optimum served as the middleman, paying MSG Networks to ensure access to local sports programming in the
New York tri-state area. With so many other ways to get the same content, Optimum is taking a stand on behalf of customers.
Voices in the sports industry have weighed in on the fragile and outdated RSN model given fragmentation, including MSG Networks’ Executive Chairman, who stated, “The increased number of exclusive and non-exclusive games [under the new deal] means that national partners would have the ability to air nearly half of the regular season and all postseason games. This reduction in available games for RSNs risks rendering the entire RSN model unviable.”
-
Optimum is evolving to meet customer needs and has great options for non-sports fans, too: At Optimum, we believe customers should have choice, flexibility and value. We are committed to addressing this complex issue and taking a leadership role in the industry.
We know that consumer viewing habits have changed dramatically over the last few years, and content is not one size fits all, so we are tailoring our offerings to meet customer needs individually.
We ask customers to please call us directly — so we can understand what’s important to them and continue to support their viewing and entertainment interests accordingly. Specifically, for non-sports fans, we have new video solutions starting at just$30
Visit www.optimum.com/MSG 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/20250116438839/en/
Media:
Stephen Stokes
(917) 553-0667
stephen.stokes@optimum.com
Source: Altice USA
FAQ
How much is MSG Networks demanding in refunds from ATUS for customer compensation?
What is the price difference between MSG Networks' stated value and Gotham Sports app?
What percentage of Optimum customers didn't watch MSG Networks in 2024?
What alternative viewing options is Optimum offering during the MSG Networks blackout?
Which sports teams are affected by the MSG Networks blackout on Optimum?
