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African News Herald > Blog > Business > MSG Networks, Optimum dig in for long fight as Knicks game blacked out: sources
Business

MSG Networks, Optimum dig in for long fight as Knicks game blacked out: sources

ANH Team
Last updated: January 2, 2025 9:08 am
ANH Team
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MSG Networks and Optimum have hit a roadblock in their negotiations, leading to a blackout of MSG Networks on Optimum cable systems. This means that Knicks and Rangers fans could be left without access to their beloved teams for an extended period of time.

The contract between Optimum and MSG Networks expired at midnight on New Year’s Day, with the two sides failing to reach an agreement on a new deal. The dispute is centered around the high fees demanded by MSG Networks, with Optimum looking to cut costs by renegotiating the terms of the contract.

Optimum subscribers were met with a blue screen on their TVs, informing them that MSG Networks is no longer available on their lineup. This has left fans frustrated and angry, with many feeling caught in the middle of a battle between two corporate entities.

MSG Networks, led by Knicks and Rangers owner James Dolan, has accused Optimum of attempting to raise rates by over $10 per month. On the other hand, Optimum claims that MSG Networks refused multiple offers to reach a deal and demanded exorbitant fees.

The blackout has immediate implications for Devils and Knicks games scheduled on New Year’s Day, leaving fans without access to live games. Subscribers have been offered a 30% discount on the streaming service Fubo, which carries MSG Networks, as a temporary solution.

The standoff between Optimum and MSG Networks could have significant financial implications for both companies. MSG Networks could see a decrease in revenue if it is moved to a premiere tier on Optimum, while Optimum faces the risk of losing subscribers to rival cable companies.

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If the impasse continues, MSG Networks could face bankruptcy, as it is currently in default on $830 million in loans. This could lead to a renegotiation of rights fees for Knicks and Rangers games, potentially resulting in lower costs for MSG Networks.

Despite the ongoing dispute, there is a possibility for a resolution in the future. Both companies have expressed a willingness to negotiate in good faith, but the outcome remains uncertain. Fans will have to wait and see how the situation unfolds in the coming days and weeks.

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