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MSG NETWORKS RESPONSE TO ALTICE

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MSG Networks has issued a direct response to Altice USA regarding their ongoing dispute. The company demands that Altice either match the deal previously given to YES Networks, reinstate MSG's previous agreement, or provide refunds to subscribers. Specifically, MSG Networks is calling for a $10 monthly refund to subscribers, noting that $5 is already owed for programming not delivered in early January.

MSG Networks ha emesso una risposta diretta a Altice USA riguardo la loro disputa in corso. La società chiede che Altice eguagli l'accordo precedentemente offerto a YES Networks, ripristini il precedente contratto di MSG o fornisca rimborsi agli abbonati. In particolare, MSG Networks richiede un rimborso mensile di $10 per gli abbonati, osservando che $5 sono già dovuti per la programmazione non fornita all'inizio di gennaio.

MSG Networks ha emitido una respuesta directa a Altice USA en relación a su disputa en curso. La compañía exige que Altice iguale el acuerdo previamente ofrecido a YES Networks, restablezca el acuerdo anterior de MSG o proporcione reembolsos a los suscriptores. Específicamente, MSG Networks está pidiendo un reembolso mensual de $10 para los suscriptores, señalando que ya se deben $5 por la programación que no se entregó a principios de enero.

MSG 네트워크스알타이스 USA에 대해 현재 진행 중인 분쟁에 대한 직접적인 응답을 발표했습니다. 회사는 알타이스가 YES 네트워크에 이전에 제공된 거래에 맞추거나 MSG의 이전 계약을 복원하거나 구독자에게 환불할 것을 요구하고 있습니다. 구체적으로 MSG 네트워크스는 구독자에게 월 $10 환불을 요구하고 있으며, 1월 초에 제공되지 않은 프로그래밍에 대해 이미 $5가 미지급되었다고 언급했습니다.

MSG Networks a émis une réponse directe à Altice USA concernant leur conflit en cours. La société exige qu'Altice égalise l'accord précédemment donné à YES Networks, rétablisse l'accord précédent de MSG ou fournisse des remboursements aux abonnés. En particulier, MSG Networks appelle à un remboursement mensuel de 10 $ pour les abonnés, notant que 5 $ sont déjà dus pour une programmation non fournie au début de janvier.

MSG Networks hat eine direkte Antwort an Altice USA in Bezug auf ihren laufenden Streitfall veröffentlicht. Das Unternehmen fordert, dass Altice entweder das zuvor angebotene Angebot an YES Networks anpasst, die frühere Vereinbarung von MSG wiederherstellt oder Rückerstattungen an die Abonnenten bereitstellt. Konkret fordert MSG Networks eine monatliche Rückerstattung von 10 USD für die Abonnenten und weist darauf hin, dass bereits 5 USD für die in den frühen Januar nicht bereitgestellte Programmierung geschuldet werden.

Positive
  • Strong negotiating position by demanding equal treatment with YES Networks
Negative
  • Ongoing carriage dispute affecting revenue and viewer access
  • Service interruption since early January impacting subscriber base

Insights

This escalating public dispute between MSG Networks and Altice (Optimum) represents a critical juncture in the ongoing carriage fee negotiations. The aggressive tone of MSG's response, specifically calling out Altice's deal with YES Networks, reveals the high-stakes nature of these negotiations and potential revenue implications. The demand for $10 monthly subscriber refunds, plus an additional $5 for January's service interruption, could significantly impact Altice's financials if implemented.

The reference to YES Networks' deal is particularly notable as it establishes a market precedent for regional sports network (RSN) pricing. This dispute highlights the broader industry challenge of balancing content costs with subscriber retention in an increasingly fragmented media landscape. The potential financial exposure for Altice could be substantial - with their approximately 2.6 million subscribers in the NY metro area, the demanded refunds could amount to hundreds of millions annually.

The public nature of this dispute and the aggressive positioning suggest negotiations have reached a critical impasse, which could lead to either a swift resolution or a prolonged blackout that may accelerate cord-cutting trends in the affected markets.

The confrontational strategy employed by MSG Networks signals potential material risks to both companies' revenue streams. For MSG Networks, each month of carriage dispute represents lost affiliate fee revenue, while Altice faces subscriber churn risk and potential refund obligations. Based on typical RSN fee structures, MSG Networks could be losing approximately $5-7 per subscriber monthly, translating to significant revenue impact given Altice's subscriber base.

The demand for retroactive refunds adds another layer of financial complexity. If Altice concedes to the $15 total refund demand ($10 monthly + $5 for January), it could face a one-time hit of approximately $39 million based on their subscriber count. This dispute's resolution will likely set precedents for future RSN negotiations and could influence both companies' valuations and market positions in the broader media ecosystem.

NEW YORK, Jan. 16, 2025 /PRNewswire/ -- MSG Networks released the following response to Altice USA:

"In response to Optimum's last release what we have to say is simple:

Cut the B.S. - give us the same deal you gave YES Networks just a few months ago OR give us our old deal which we had with you previously OR refund every subscriber what you owe them - $10 a month. And by the way you already owe them $5 for the lack of programming they didn't get for the first half of January."

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)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/msg-networks-response-to-altice-302353758.html

SOURCE Sphere Entertainment Co.

FAQ

What is MSG Networks demanding from Altice in their January 2025 statement?

MSG Networks is demanding that Altice either match YES Networks' deal, reinstate MSG's previous agreement, or provide $10 monthly refunds to subscribers.

How much refund is MSG Networks saying Altice owes subscribers for January 2025?

MSG Networks states that Altice owes subscribers $5 for lack of programming during the first half of January 2025.

What are the three options MSG Networks gave to Altice in their response?

MSG Networks gave Altice three options: match YES Networks' deal, reinstate MSG's previous agreement, or provide $10 monthly subscriber refunds.

When did the programming interruption between MSG Networks and Altice begin?

Based on the statement, the programming interruption began in early January 2025.

Sphere Entertainment Co.

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