Altice USA (Optimum) Has Dropped MSG Networks, Depriving Local Fans of Hundreds of Live, Exclusive Games of Their Favorite Teams

Rhea-AI Summary

MSG Networks has been dropped from Altice USA's Optimum channel lineup in the tri-state area, affecting coverage of Knicks, Rangers, Islanders, and Devils games. Despite MSG Networks offering multiple proposals, including terms to pay less than last year and maintaining service during negotiations, Altice rejected all offers.

Altice has significantly increased its pricing, with current Optimum subscribers facing a nearly 50% price increase (from $95 to $140/month) for the Core TV package, while new subscribers face up to 70% higher rates ($160/month) for packages that previously included MSG Networks. MSG Networks claims they offered Altice the same terms accepted by other major providers.

Positive

• None.

Negative

• Loss of MSG Networks content from Optimum's channel lineup
• 50% price increase for current Optimum subscribers (from $95 to $140/month)
• 70% price increase for new Optimum subscribers (up to $160/month)
• Failed negotiations despite multiple proposals

Insights

Media Industry Analyst

This carriage dispute between MSG Networks and Altice USA represents a critical shift in the sports media landscape. The disruption affects approximately 2.5 million Optimum subscribers in the tri-state area, potentially triggering significant subscriber churn. The timing is particularly detrimental during peak NBA and NHL seasons.

The pricing dynamics reveal a broader industry challenge - Altice's price increases of 50% for current subscribers and 70% for new subscribers, raising packages from $95 to $140-$160, reflect the mounting pressure on cable operators facing cord-cutting. MSG Networks' position of offering terms below last year's rates while Altice implements substantial price hikes suggests this is more about Altice's business model restructuring than content costs.

The dispute's timing and nature could accelerate cord-cutting in the region, potentially benefiting streaming services and alternative providers. For SPHR investors, this represents a near-term revenue risk but could drive innovation in direct-to-consumer offerings.

Sports Business Analyst

The blackout's impact extends beyond immediate viewer disruption to affect team valuations and regional sports network (RSN) ecosystem stability. MSG Networks holds exclusive rights to four major professional sports franchises in the nation's largest media market. Historical data shows that extended RSN blackouts can lead to a 15-20% permanent viewership loss even after resolution.

The dispute highlights the fragility of the traditional RSN model. With NBA games averaging 120,000 viewers per broadcast and NHL games drawing 85,000 viewers in the region, this blackout threatens significant advertising revenue and could accelerate the shift toward streaming alternatives. For SPHR, this situation could force strategic pivots in distribution strategy, potentially accelerating direct-to-consumer initiatives.

Knicks, Rangers, Islanders and Devils Coverage on MSG Networks is Dark for Optimum Subscribers

For More Information, Please Visit KEEPMSG.COM

NEW YORK, Jan. 1, 2025 /PRNewswire/ -- Despite MSG Networks' extensive efforts to reach an agreement, Altice USA has dropped MSG Networks from its Optimum channel lineup in the tri-state area, leaving passionate Knicks, Rangers, Islanders and Devils fans out in the cold this winter.   

MSG Networks issued the following statement:

"As a last-ditch effort to save their struggling business at the expense of subscribers, Altice is trying to charge their customers more and give them less. They just raised prices – nearly 50% for current Optimum subscribers and 70% for new Optimum subscribers (after expiration of a promotional offer) for the package that had included MSG Networks – and cut access to the Knicks, Rangers, Islanders, Devils and more on MSG Networks.  We offered Altice a number of fair and reasonable proposals that called for Altice to pay us less than last year. Altice rejected all of them, including our offer to keep MSG Networks on the air while we continued to try to reach a deal.  We remain ready to negotiate in good faith."

In addition:

• The previous Optimum Core TV package – which included MSG Networks and includes other sports channels – increased from $95 to $140/month, nearly a 50% increase.
• Now, following Altice's introduction of its new packages just a few weeks ago, the most "affordable" new package that had offered MSG Networks prior to the drop is $160/month – that is almost 70% more than what Optimum customers paid before.
• MSG Networks offered Altice the same fair and reasonable terms that other major providers accepted. And now Altice's own customers are paying the price to bolster Altice's bottom line with dramatic price hikes and unreasonable proposals to programmers.
• Optimum subscribers are encouraged to visit KEEPMSG.COM for more information, including on how switch providers or to find other options for watching MSG Networks' award-winning programming.
• NBA and NHL telecasts appearing on MSG Networks regularly rank as some of the most-watched cable programs in the region. 

About MSG Networks

MSG Networks, a pioneer in sports media, owns and operates two award-winning regional sports and entertainment networks (MSG and MSG Sportsnet) and MSG+, a direct-to-consumer and authenticated streaming offering (included in the Gotham Sports App), that serve the nation's number one media market, the New York DMA, as well as other portions of New York, New Jersey, Connecticut and Pennsylvania. The networks feature a wide range of compelling sports content, including exclusive live local games and other programming of the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres, as well as significant coverage of the New York Giants and Buffalo Bills. This content, in addition to a diverse array of other sporting events and critically acclaimed original programming, has established MSG Networks as the gold standard in regional sports. MSG Networks is part of the Sphere Entertainment Co. (NYSE: SPHR).

Contact: Dan Schoenberg (dan.schoenberg@msg.com)

 

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SOURCE Sphere Entertainment Co.

FAQ

Why did Altice USA drop MSG Networks from Optimum?

Altice USA dropped MSG Networks after rejecting multiple proposals, including offers to pay less than last year, amid pricing restructuring of their Optimum packages.

How much did Optimum prices increase after dropping MSG Networks?

Optimum Core TV package prices increased by nearly 50% (from $95 to $140/month) for current subscribers, and new subscribers face rates up to 70% higher ($160/month).

What sports teams' coverage is affected by MSG Networks being dropped from Optimum?

The coverage of Knicks, Rangers, Islanders, and Devils games is affected by MSG Networks being dropped from Optimum.

What alternatives do Optimum subscribers have for watching MSG Networks content?

Optimum subscribers can visit KEEPMSG.COM to learn about switching providers or finding other options for watching MSG Networks' programming.