The carriage dispute between MSG Networks and Altice-owned Optimum has been messy. The broadcast home of the New York Knicks, New York Rangers, New York Islanders, and New Jersey Devils is now proposing a short-term truce, but there’s a string attached. MSG Networks went dark for Optimum subscribers at the beginning of January, primarily due to a disagreement over how the network is tiered in Optimum’s cable packages and the compensation for MSG per subscriber. Last week, MSG accused Altice of walking away from the negotiating table, while Altice asserted that MSG Networks rejected multiple proposals and continues to present demands they find unacceptable.
On Tuesday, MSG Networks adopted a new strategy, announcing via a press release that they are offering a truce that would restore their content to Optimum subscribers in exchange for third-party arbitration. “Our goal is to make sure our Knicks, Rangers, Devils, and Islanders fans who are Optimum subscribers don’t have to miss another game,” the statement read. “To that end, we are willing to agree to a short extension tied to resolving our dispute through binding arbitration by a neutral, third party. This will enable Optimum subscribers to watch their favorite sports programming while we address our outstanding issues.” With MSG Networks reportedly getting one-third of its revenue from Optimum, it is in their best interest to reach a resolution swiftly.
However, Optimum does not view this latest move by MSG Networks as a good-faith tactic. “We are ready to put the games on tonight for customers who want it – all MSG needs to do is give us the green light, but they won’t because they want to continue to charge those who do not watch it,” Optimum stated. “Truth is, MSG’s statement is nothing more than a PR stunt – we have hosted their executives in our offices numerous times, and in fact, we were close to a deal on Friday when MSG’s Executive Chairman informed us he was walking away from that agreement. We believe it is unfair to charge customers for something they do not watch and are ready to reach a fair deal with MSG Networks that provides their content to fans while ensuring that those who don’t watch don’t have to pay for it.”
As it stands, MSG Networks’ latest public offer does not seem to be advancing negotiations, and we will continue to monitor the situation closely as the NBA and NHL seasons progress.
