The 52-day dispute between MSG Networks and Optimum has reached a conclusion with the two sides agreeing to a new carriage agreement. Service of the Sphere Entertainment Co.-owned regional sports network was restored to Optimum subscribers ahead of the New York Rangers game against the Buffalo Sabres on Saturday night. The cable provider stopped carrying New York Knicks basketball, along with New York Rangers, New York Islanders and New Jersey Devils hockey on January 1. An Altice spokesperson cited in a CNBC report shared that about 1 million cable television customers on Optimum accessed MSG Networks as part of their packages.
“MSG Networks and Optimum are pleased to announce they have reached an agreement for the relaunch of MSG Networks on Optimum video lineups,” the companies said in a statement. “MSG Networks and Optimum would like to thank everyone for their patience as we partnered to reach this new agreement to benefit our fans and Optimum subscribers.”
Josh Kosman and Andrew Battifarano of the New York Post have reported that the agreement is a multiyear deal between both entities. Optimum is said to have the ability to sell packages without MSG Networks for a lower price, which was most recently on its basic tier. Moreover, MSG Networks is reportedly lowering the price per Optimum subscriber from approximately $10 to $8 instead. Optimum users will be able to access regional sports networks, such as YES Network and SNY, in the “Everything TV” tier, which offers more than 200 channels and costs $140 per month.
“This deal brings new value and flexibility to Optimum TV, making our efforts over the last two months well worth the wait and capturing a major win for Optimum on behalf of our customers,” Dennis Mathew, chairman and chief executive officer of Altice USA, said in a memo to employees obtained by the New York Post. “I’m pleased to say that after several months of negotiations with MSG Networks, today they have agreed to a deal that we believe sets the stage for a broader change within the TV industry.”
According to a report filed by John Ourand of Puck last month, Altice accounts for about 33% of distribution revenue for MSG Networks. Within that writing, he cited Brandon Ross, LightShed Partners media and technology analyst, who surmised that MSG Networks might be unable to make its debt payments if the company was unable to reach a deal.
Kosman reported that MSG Networks was reportedly in talks with a group of lenders currently led by JPMorgan to whom it owes $829 million and that it could look for external investment in order to stabilize finances. Lenders have reportedly issued forbearance extensions multiple times with a current deadline of March 26 at 11:59 p.m. EST, as exhibited in filings with the U.S. Securities and Exchange Commission.
