Optimum Demands MSG Networks Refund Customers Upwards of $125 Million
17 January 2025 - 8:16AM
Business Wire
Optimum Continues to Help Fans Watch Their
Favorite Teams AND Continue to Offer New, Affordable Video Options
to Non-Sports Fans
Is MSG Networks Trying to Tank this Deal to
Get Customers to Pay Three Times More Through Gotham and Drive Up
the Share Price of the Sphere (which he also owns)?
For weeks, Optimum and MSG Networks have been negotiating
continued carriage on Optimum systems. Over the last two weeks,
Optimum hosted MSG Networks’ executives in its offices twice and
hosted multiple calls trying to find a solution that would bring
MSG Networks’ content to fans and prevent non-viewers from having
to pay for what they do not watch. MSG Networks has refused all
offers. Perhaps MSG Networks is purposely trying to tank the deal
to get customers to pay three times more for their own app AND save
the Sphere by bankrupting MSG Networks?
As MSG Networks continues to deflect responsibility for its
ongoing blackout of Knicks, Rangers, Islanders, and Devils games,
today, Optimum has called on the programmer to refund customers
upwards of $125 million — representing the estimated $10 per month
per subscriber MSG Networks announced its sports programming is
worth.
Optimum issues the following statement:
“MSG Networks continues to play games with our customers while
refusing to engage in meaningful negotiations. MSG Networks needs
to take responsibility and issue refunds to subscribers for the
programming they did not watch but were forced to pay for in
2024.
MSG Networks has habitually overcharged consumers, first for
cable distributed content and now for Gotham Sports, taking what
they say is a $10 product and tripling that fee to $30 for Gotham
Sports users to access the exact same content on its app (one of
the most expensive apps in the ecosystem). In light of its
impending bankruptcy, MSG Networks continues to try and extort
consumers for their hard-earned dollars while charging die-hard
fans triple the costs, despite airing less games due to a $76
billion NBA deal that MSG and its owners will benefit from.
At Optimum, our attention is on our customers – we will continue
to make sure they have ways to watch MSG Networks’ content,
including getting fans signed up for Gotham Sports, driving profits
to MSG Networks’ business. If Gotham Sports isn’t of interest, we
have other streaming service solutions for customers.
And non-sports fans can call us to talk about our new video
offerings that provide choice, flexibility and affordability, and
are designed to ensure customers pay for the content they care
about.
At the heart of this dispute is MSG Networks, a company
prioritizing profits over people. In fact, their owner publicly
acknowledged how outdated and unviable their own business model is
due to the fragmentation of viewing now that customers have options
to get their sports content from various sources. MSG needs to
address their core issue: their continued insistence on inflated,
mandatory fees that penalize most subscribers to offset their dying
business model.
The truth is, sports should unite us, not divide us – we love
our local sports teams and will continue to support and cheer them
on.”
Additional Information:
- MSG Networks Viewership on Optimum: Nearly 50% of
customers with access to MSG Networks didn't even turn on the
channel in 2024 – forcing them to pay is unfair, especially when
there are so many ways for fans to get their content.
- Optimum Loves its New York and New Jersey Sports Teams:
Optimum is a huge fan of the Knicks, Rangers, Devils and Islanders
and we will continue to support them and cheer on our local teams.
This dispute has nothing to do with the teams — it has everything
to do with MSG Networks forcing non-fans to pay for content that
they do not watch.
- MSG Has Admitted to Overcharging Gotham Sports
Customers: MSG Networks has publicly acknowledged that they
believe their content is worth $10 per month yet charges its Gotham
Sports users triple at $30 per month for the same exact content –
that’s $360 per year for a few months of live content. From day
one, Optimum has offered solutions for those that want to access
MSG Networks’ content, including offsetting and defraying the costs
of the Gotham Sports app, and Optimum will continue to provide
affordable customer-friendly options for subscribers. It’s time for
MSG Networks to do the same.
- The RSN Model Is Broken: For years, Optimum served as
the middleman, paying MSG Networks to ensure access to local sports
programming in the New York tri-state area. With so many other ways
to get the same content, Optimum is taking a stand on behalf of
customers. Voices in the sports industry have weighed in on the
fragile and outdated RSN model given fragmentation, including MSG
Networks’ Executive Chairman, who stated, “The increased number of
exclusive and non-exclusive games [under the new deal] means that
national partners would have the ability to air nearly half of the
regular season and all postseason games. This reduction in
available games for RSNs risks rendering the entire RSN model
unviable.”
- Optimum is evolving to meet customer needs and has great
options for non-sports fans, too: At Optimum, we believe
customers should have choice, flexibility and value. We are
committed to addressing this complex issue and taking a leadership
role in the industry. We know that consumer viewing habits have
changed dramatically over the last few years, and content is not
one size fits all, so we are tailoring our offerings to meet
customer needs individually. We ask customers to please call us
directly — so we can understand what’s important to them and
continue to support their viewing and entertainment interests
accordingly. Specifically, for non-sports fans, we have new video
solutions starting at just $30 per month, providing great savings,
choice, and flexibility. Our team is ready to help customers find
the best packages for them. Visit www.optimum.com/MSG to learn
more.
About Optimum
Optimum is a brand of Altice USA, one of the largest broadband
communications and video services providers in the United States,
delivering broadband, video, mobile, proprietary content and
advertising services to approximately 4.6 million residential and
business customers across 21 states. The company operates Optimum
Media, an advanced advertising and data business, which provides
audience-based, multiscreen advertising solutions to local,
regional and national businesses and advertising clients. Altice
USA also offers hyper-local news through its News 12 networks.
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version on businesswire.com: https://www.businesswire.com/news/home/20250116438839/en/
Media: Stephen Stokes (917) 553-0667
stephen.stokes@optimum.com
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