MSG Networks Goes Dark on Altice USA’s Optimum Amid Contract Dispute

MSG Networks has gone dark on Optimum in the tri-state area as Altice USA and Sphere Entertainment have been unable to reach a new carriage deal. Their current contract expired at midnight on Dec. 31.

Optimum argues that MSG has been demanding “exorbitant” programming fees and is requiring the TV and internet provider to make MSG channels available to the vast majority of its video subscribers, whether they want the content or not.

“Now more than ever, especially in this economy, it is unfair for MSG Networks to demand more money from their Optimum viewers, especially when there are ways for fans to get games directly from MSG through other direct-to-consumer options,” the company said in a statement. “Despite this, 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. ” 

The company said it is providing offers to impacted customers to help “offset and defray” the cost of Gotham Sports (a joint venture with the New York Yankees-owned YES Network), and other services to continue watching games by the NBA’s New York Knicks and the NHL’s New York Rangers, New York Islanders and New Jersey Devils.

The Gotham Sports app’s Gotham Plan is available for $41.99 per month and $359.99 per year. The MSG+ plan costs $29.99 per month or $279.99 per year, while its single game pass costs $9.99.

Meanwhile, MSG says that it offered Altice a number of “fair and reasonable” proposals that called for the company to pay it less than last year. However, it says that Altice rejected all of them, including an offer to keep MSG Networks on the air while the two parties continue to negotiate.

MSG pointed out that Optimum recently raised the price of its core TV package from $95 to $140 per month – a nearly 50% increase. It also said that, following the introduction of its new packages a few weeks ago, the most affordable option that offered MSG Networks prior to the carriage dispute is $160 per month – almost 70% more than what Optimum customers paid before.

“MSGN is one of the most viewed television offerings in the New York metro area. This is a pure and simple price gouge from Altice. 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,” a spokesperson told TheWrap. “We remain ready to negotiate in good faith to get our programming back on Optimum.”

MSG has launched a website telling Optimum subscribers how to switch providers or find other options for watching its programming during the blackout.

The carriage dispute comes as the Rangers are set to face the Boston Bruins on Thursday night at 7 p.m. ET.

Elsewhere, the Knicks will face off against the Oklahoma City Thunder on Friday at 8 p.m. ET and the Chicago Bulls on Saturday at 8 p.m. ET, the Devils will face off against the San Jose Sharks at 4 p.m. ET on Saturday, and the Islanders will take on the Bruins at 5 p.m. ET on Sunday.

Optimum has partnered with Fubo to give its subscribers a free trial and 30% off their first two months. Some of the games will also be available on other networks including ABC, ESPN, TBS, TNT, NHL Network and NBA TV, as well as ESPN+ and Hulu.

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