UPDATE, February 25: MSG Networks and Optimum announced on February 22 that they have settled their carriage dispute, and the sports network was again available.
The companies did not release details of the settlement.
The New York Post reported that the deal is for more than one year. It enables Optimum to sell lower-priced packages without MSG Networks. The sports network previously was on Optimum’s basic tier.
Optimum now would offer Entertainment TV, Extra TV and Everything TV tiers. MSG and other sports channels — the Post story uses YES Network and SNY as examples — will be on the Everything TV tier.
Context for the conflict is that MSG reportedly is in danger of filing for bankruptcy. It’s unclear what impact that possibility had on MSG Networks’ negotiations with Optimum.
Original Story Follows: January 7
Statements by MSG Networks and Optimum suggest no quick resolution to the battle over the renewal of their carriage agreement a week after the network went dark on the service provider’s systems.
“This is a pure and simple price gauge from Altice,” an MSG Networks spokesperson told Telecompetitor in an email. “An attempt to add over $10 dollars a month right to their bottom line — a $10 dollar rate increase on top of a 50% rate increase. We remain ready to negotiate in good faith to get our programming back on Optimum.”
Optimum’s update implies that the underlying issue is that the emergence of streaming services has altered the relationship between content owners and traditional providers.
“…Optimum offered to absorb their egregious price demands if we could package MSG Networks in a way that would give more flexibility and control to our customers so that fans could continue to watch and pay for their content while non-viewers would not be forced to pay for what they don’t watch. MSG Networks said no and refused multiple offers from us to reach a deal.”
Beyond the traditional name calling, it could be that the resolution of the standoff turns out to be a bellwether for how carriage arrangements change in an era of multiple delivery options.
“It is no secret that viewership for Regional Sports Networks has become increasingly fragmented across countless streaming platforms and services,” the Optimum statement about the MSG Networks conflict said.
“Yet MSG Networks continues to squeeze its viewers for more money to watch their content, refusing to evolve or deviate from a broken model that is outdated based on the evolution of the entertainment industry, is anti-consumer, and unsustainable in today’s programming landscape.”
Sports, of course, is a mainstay video offering. Last April, a survey of more than 4,400 adults conducted by the NCTA and Morning Consultthat 76% are at least casual fans and 21% are avid fans. 55% watch sports regularly, and 55% do so via cable or streaming. The “avid” group has higher incomes and prefers purchasing bundles of channels. Others prefer purchase by team, game, or league.
