NEW YORK—New York State Attorney General Letitia James, Connecticut Attorney General William Tong and New Jersey Attorney General Matthew Platkin have sent a letter to Altice USA urging the cable operator to quickly resolve contract negotiations with MSG Networks.
The attorneys general also demanded automatic refunds for customers who have been denied access to the MSG regional sports channels they paid for as part of their Optimum cable plans. The letter noted that some refunds or credits had been made but were not universally given out to subscribers.
The MSG and MSGSN networks have been blacked out on Altice-ownd Optimum cable systems since Jan. 1, when the two sides were unable to reach a new carriage deal. Key sticking points are pricing and whether the networks need to be part of large programming packages. The two New York City-area channels broadcast games from the NBA’s Knicks and the NHL’s Rangers, Islanders and New Jersey Devils.
“New York sports fans are being put in the penalty box, forced to shell out their hard-earned money for television channels they cannot even watch,” James said. “Optimum customers have paid for channels to watch their home sports teams, but their cable company is not offering these channels while charging them anyway. I am determined to secure a solution for New Yorkers who have had to endure these unfair blackouts and I urge Optimum and MSG to finally reach a deal so New Yorkers can watch their home teams.”
Added Tong: “Optimum and MSG need to stop the posturing and get back to the table. Figure it out and let us watch our sports in peace. In the meantime, consumers are paying for sports they can’t watch and they are owed immediate refunds without hassle.”
The full letter is available here. The letter did not lay out specific details on what legal action the attorneys general could take or might be authorized to take under state or federal laws if the dispute is not resolved.
MSG Networks issued a statement saying: “We applaud the Attorneys General in demanding Altice do right by its subscribers and either issue a full refund or immediately reach an agreement to return MSG Networks to Optimum subscribers.”
In response, Altice USA noted that “since January 1, Optimum has been focused on limiting customer disruption by proactively engaging with customers to provide personalized assistance and alternative solutions for sports fans and non-sports fans alike. From press releases and social media campaigns to customer emails and educational videos, we have been vocal about the options we have available — from helping to offset the cost of Gotham Sports or Fubo to transitioning customers to new video offerings that save them an average of $25/month."
The operator reported that customers are encouraged to call the company and htat more information is available at optimum.com/msg.
Altice also stressed that the the dispute is part of larger issues in the pay TV and video landscape, particularly high prices and large programming bundles, that have encouraged cord cutting.
"As we have repeatedly said, the legacy video model is broken because distributors like Optimum continue to be handcuffed by programmers like MSG Networks who demand we make their content available to the majority of customers, regardless of actual viewer interest," the statement said. "It is this antiquated model, one that forces high fees and minimum penetration rates, that continues to drive up the costs of legacy video packages and gives distributors like us little flexibility to adjust prices – especially in an evolving TV landscape where consumers now have more choice than ever before."
:We agree that our customers need affordable, practical options now, which is why we launched more affordable packages that are made possible thanks to programmers who are willing to partner with us in new ways that address customer needs," the company concluded. "This is also why we’re advocating for our customers and pushing back on MSG’s approach."
