Cable TV Blackout Hits Altice USA Customers
Regional Sports Networks Struggle Amid Shift to Streaming
A bitter dispute between Altice USA and MSG Networks has left thousands of cable TV subscribers without access to their favorite sports teams. The blackout, which began early Wednesday, affects customers of Altice USA’s Optimum cable TV service, depriving them of the NBA’s New York Knicks and the NHL’s New York Rangers, New York Islanders, and New Jersey Devils.
Fees at the Heart of the Dispute
The standoff centers on a disagreement over programming fees, a common sticking point in such negotiations. MSG Networks claims to have offered Altice USA a series of “fair and reasonable” proposals, including one that would have seen the cable operator pay less than last year. However, Altice USA rejected these offers, citing the exorbitant fees demanded by MSG Networks, which could lead to higher cable bills for customers.
A Shift to Streaming Options
The blackout highlights the ongoing struggles of regional sports networks as consumers increasingly abandon traditional cable TV bundles in favor of streaming options. MSG Networks, like other regional sports networks, has launched its own streaming service, priced at $29.99 a month. However, the high cost of these streaming options poses a challenge for the networks, which must balance their need for revenue with the risk of disrupting the cable TV model and breaching contracts with distributors.
A Delicate Balance
These contracts are crucial, as they provide the billions of dollars in fees needed to air professional sports games. The networks must tread carefully to avoid further eroding the cable TV model, which remains a vital source of revenue. As the media landscape continues to evolve, the fate of regional sports networks hangs in the balance.
About Altice USA
New York-based Altice USA had over 1.9 million residential cable TV customers as of September 30, despite losing around 77,000 subscribers compared to the same quarter in the previous year. The company’s struggles reflect the broader trend of consumers abandoning traditional cable TV bundles in favor of streaming options.
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