Cablevision's Spinoff Of MSG Could Lead To Rate Increases Of RSNs

Cablevision has "set the wheels in motion for a January spin-off of its Madison Square Garden unit, and perhaps for rate increases" for its RSNs, according to Mike Farrell of MULTICHANNEL NEWS. Pali Research Managing Dir & Media Analyst Richard Greenfield said that Cablevision could be "setting the stage for bigger rate increases for the MSG networks." Cablevision in its quarterly report in November said that it will pay an additional $30M to MSG in '10 as a "result of its renewal of carriage agreements." Greenfield noted that this translates into an $0.82 "per-subscriber, per-month rate increase for the MSG networks, which he called 'substantial.'" SNL Kagan indicated that MSG is "currently getting, on average, about $1.84 per month per subscriber from multichannel video providers for the network and about $1.44 for sister channel MSG Plus." An $0.82 per-subscriber increase "would push a combined MSG and MSG Plus into the $4.10 range, a heady neighborhood given that MSG does not have a full-year slate of professional sports" (MULTICHANNEL NEWS, 12/21 issue).