
The New York state attorney general is urging Altice USA’s Optimum and regional sports broadcaster MSG Networks to work out the issues that are preventing local basketball and hockey fans from watching live games on the cable TV platform.
Early Monday morning, New York Attorney General Letitia James affirmed her intention to “monitor the situation closely…to ensure New York customers receive the services they are paying for.”
As written, James appeared to take more issue with Altice USA and Optimum for the dispute that started on January 1. As is typical with disputes like these, the biggest issue centers around fees companies like Altice USA are legally required to pay broadcasters like MSG Networks for the privilege of carrying their channels.
Over the years, broadcasters have demanded more money and more-favorable distribution terms, while relegating more of their programming to their owned-and-operated streaming services. The practice has driven cable TV subscribers out the door; those who remain wind up paying higher fees for the same set of channels, because cable operators have to pass those fees on to customers in their bills (or otherwise carry those channels at a sizable financial loss).
In a statement provided to The Desk on Monday, a spokesperson for MSG Networks indicated the company considers James’ statement to be an indication that she is on their side, even as the company seeks higher retransmission consent fees for their channels.
“We thank New York Attorney General Letitia James for stepping in on behalf of Optimum subscribers who are not getting what they are paying for,” the MSG Networks spokesperson said. “We hope the Attorneys General in New Jersey and Connecticut do the same, as well as other officials and advocates across the tri-state area.”
For its part, Altice USA has directed Optimum subscribers to other services for their TV programming needs. The company reached a deal with Fubo that allows Optimum subscribers to receive live sports, news and entertainment through that platform at a 30 percent discount for the first two months. Altice USA has also informed customers that they can receive MSG Networks programming directly from the broadcaster by subscribing to MSG Plus, a $30 per month service that is offered through the Gotham Sports app for phones, tablets and smart TVs.
The dispute between Altice USA and MSG Networks seems like it could drag on for a little while longer, with MSG Networks encouraging sports fans to “reach out to their Attorneys General, consumer advocates, and other Federal and State officials to demand Altice USA either restore MSG Networks and its coverage of the Knicks, Rangers, Islanders and Devils or automatically reduce subscribers’ monthly bills by the amount Altice USA saves by no longer carrying this programming.”
Notably, Altice USA has not provided bill credits to customers, the way other cable and satellite companies have done in the past when they have found themselves in the middle of similar disputes. That position is particularly notable, because Optimum subscribers have fewer channels now than they did two weeks ago, including those owned by Nexstar Media Group after the company’s contract with that broadcaster expired last Friday.
There is no state or federal requirement that forces cable and satellite companies to offer bill credits, but many opt to do so as a goodwill gesture to subscribers who stick with their service through those programming-related fights. By not doing so, MSG Networks says Altice USA is “pocketing more than $10 per month they should automatically be reimbursing to its more than 1 million subscribers while MSG Networks remains dark.”
A spokesperson for Optimum said the company “agrees with the Attorney General that fans should be able to continue to watch their favorite teams, and Optimum continues to negotiate in good faith to reach a deal that restores programming for fans and ensures that non viewers – which represent half of the customer base – don’t have to pay for it.”
“Consumer viewing habits have changed dramatically over the last few years, and we know that content is not one size fits all, so we are tailoring our offerings to meet customer needs individually,” the spokesperson continued. “That’s why we want customers to call us directly — to understand what’s important to them and continue to support their viewing and entertainment interests accordingly.”
Optimum is directing sports fans to its website to learn more about their options during the dispute with MSG Networks.