MSG Networks provides critical update regarding ongoing dispute with Optimum that may benefit fans
MSG Networks' is the carrier for New Jersey Devils, New York Knicks, New York Islanders, and New York Rangers games. MSG is in a dispute with Altice USA and neither party has found a resolution. With the latest development, they have decided to through arbitration.
In order to resolve the issue with Altice USA, MSG Networks' has enlisted the help of a third-party arbitrator.
The two companies were unable to reach a new deal by December 31st, and as a result, MSG Network was unavailable on Optimum.
Optimum felt that MSG was charging exorbitant fees in order to do business, and was unfair.
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.
Optimum would delve further into the details which they felt were unfair:
«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. »
While the spat has been fought out entirely in the public, neither side has found themselves embraced by fans who are unable to watch their favorite sports teams.
Resolution In Sight?
And now, with the latest developments, there could be a resolution soon.
«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,» read a statement from Optimum. «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 and MSG's Executive Chairman told us he was walking away from that deal.
«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 brings their content to fans while ensuring those who don't watch don't have to pay for it.» It remains to be seen whether either party will respect the resolution found by the neutral third-party arbiter.
But this is another example of carrier and local networks taking their business grievances public, at the cost of fans.
This could all be done and over with, if the two had negotiated in good faith from the start.
But as always the public holds the bag after the fact.
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