Altice-owned Optimum, which reportedly accounts for one-third of revenue for MSG Networks, has, according to MSG Networks, pulled its offer in carriage negotiations with the network that airs New York Knicks and New York Rangers games.
MSG Networks went dark for Optimum subscribers last week. Now, MSG Networks is saying that Altice has walked away from negotiations.
“Altice USA has pulled their last proposal and walked away from negotiations to bring MSG Networks back to its Optimum subscribers,” reads a press release from MSG Networks. “They also just dropped WPIX Channel 11 in New York and other local stations around the country. If you have been waiting, like we have, for them to do right by their customers – don’t wait any longer. Now is the time to switch to Verizon Fios who has a special offer for Optimum subscribers. Meanwhile, Optimum has been charging their over 1 million customers for local sports programming they have not been receiving and EVERY subscriber should be credited at least $10 a month.”
Earlier in the week, Puck’s John Ourand had several key details on the impasse between Altice and MSG Networks parent Sphere Entertainment, owned by James Dolan, who also owns both the Knicks and Rangers franchises. Altice reportedly aimed to place MSG Networks in a premium package subscribers would need to pay a $55 surcharge for, which would likely decrease the number of Optimum customers paying into MSG Networks coffers.
MSG Networks “carries one of the highest costs of all (regional sports networks) in the country,” Ourand wrote.
This negotiation also brought intense scrutiny because MSG Networks is in active negotiations with its creditors on Wall Street on debt payments. The company, an independent subsidiary of Sphere Entertainment, is more than $800 million in debt. Per Sportico, it recently extended its debt obligation, originally due by October, through January.
Without carriage on Optimum services, MSG Networks will likely struggle to pay its debt and could face bankruptcy.
Altice and MSG Networks could come back to the table. In the meantime, Dolan’s company is pushing viewers to Verizon Fios — all while the Knicks and Rangers seasons continue with a large portion of New York in the dark.
UPDATE: Optimum has provided a statement to offer their side of the situation:
MSG Networks is simply throwing out things that are completely inaccurate. Despite our ongoing efforts to reach a fair and reasonable deal for our customers, MSG Networks continues to demand that non-fans be forced to pay for content that they do not want. In fact, almost half of customers with access to MSG Networks didn’t even turn on the channel in 2024.
Optimum offered numerous proposals and offers to MSG Networks, and they refused all of our offers. In an effort to continue good-faith discussions, Optimum invited MSG Networks to our offices this week to work towards a resolution, and, in fact, today Optimum requested a follow up meeting with MSG executives and we are still pending a response. Instead of pushing out misleading narratives to the media, they should focus on continued negotiations.
And while we are unable to reach an agreement to restore MSG Networks’ programming on Optimum TV lineups at this time, we remain focused on our customers. Optimum is offering our customers various solutions to ensure they never have to miss a game. This includes offsetting and defraying costs for MSG Networks’ own Gotham app, which is one of the more expensive apps in the ecosystem. As we help offset these costs and drive customers to MSG’s own app, which brings more money to them, what has MSG done to help make their content more affordable?
It’s time to stop making consumers pay more for cable TV. This is why we introduced new affordable, customer-friendly video packages in 2024. And this is also why we’re adamant in helping our customers that want to watch the Knicks, Rangers, Islanders and Devils game. If our customers want to watch it, we’ll make it happen for them. That’s the reality.
