Time Warner's Blackout Of MSG Networks Enters Day Three

The dispute between Time Warner Cable and MSG Media enters its third day after the two companies “couldn't reach a new license fee agreement as their contract expired at midnight on Jan. 1 and the two regional sports networks," which carry the Knicks, NHL Rangers, Islanders, Devils and Sabres, are “not currently available to Time Warner Cable's 2.3 million video customers in the New York DMA and in upstate New York,” according to Mike Reynolds of MULTICHANNEL NEWS. TWC is “offering its subscribers a month-long freeview of its sports package in the wake of the removal of MSG and MSG Plus from its lineup.” The cable operator is also “pointing customers to www.twcconversations.com/MSG,” and said that “nearly 40% of the remaining Knicks games, most NBA playoff action and the NBA All-Star affair, 30% of Rangers, 20% of Sabres and some Devils contests, as well as the majority of the puck sport's playoffs, will be available on other outlets.” In addition, TWC is “making Time Warner Cable Sports Pass, a package of more than 15 sports-oriented channels that includes NBA TV and the NHL Network and normally retails for $5.95 per month, available for free from Jan. 1-31.” MSG Media, whose national music service Fuse “was dropped by Time Warner Cable on Dec. 16 during these contentious negotiations, is encouraging the cable operator's subscribers to switch providers, via 888-keepmsg (533-7674) and keepmsg.com" (MULTICHANNEL.com, 1/1). In N.Y., Larry McShane notes the failed negotiations resulted in a “blackout of the MSG and MSG Plus channels at 12:01 a.m. Sunday.” The shutdown affects TWC subscribers in N.Y., the northern suburbs and New Jersey, and the first missed games last night were the Raptors-Knicks and the Devils-Senators games. TWC Dir of Communications Eric Mangan said that the company was “willing to air the channels while talks continued -- but the network refused the offer” (N.Y. DAILY NEWS, 1/1). TWC VP/PR Alex Dudley said of MSG Networks, “We’re waiting for them to come back to the table.” MSG countered in a statement early Sunday morning, “We certainly hope Time Warner Cable returns to the negotiating table and reconsiders our good-faith proposals” (N.Y. TIMES, 1/2). The dispute “does not affect Long Island residents” (NEWSDAY, 1/1).

WAR OF WORDS: Prior to the blackout, TWC Senior VP/Content Acquisition Mike Angus said that the operator “offered to continue to carry MSG through the end of the 2011-12 NBA and NHL seasons, at a 6.5 percent increase -- the rate offered by the RSN earlier this summer.” TWC said that MSG “is now asking for a 53 percent increase in its carriage fee, an assertion the network characterized as factually inaccurate.” SNL Kagan estimates that operators “pay $4.91 per sub per month for the right to carry the RSN’s feeds -- $2.63 for MSG and $2.28 for MSG Plus” (ADWEEK.com, 12/30). MSG Media President Michael Bair in a statement on Dec. 31 wrote, “Given Time Warner Cable's reportedly record-setting $5 billion investment in Los Angeles Lakers rights, we expected that they would be eager to continue to deliver top New York sports programming to their customers, who are unfortunately caught in the middle of this dispute. And they've stated publicly that they're committed to broadening their investment in local sports. Yet they're about to drop some of New York's most popular sports programming -- what does that say to New York sports fans?" (MSG). Angus said, "Perhaps after renovating the Garden they are looking for New York sports fans to fund renovations of the Forum (which they) recently purchased in Los Angeles. Who knows? That's what banks -- not our customers - are for" (VARIETY.com, 12/31).

THE FALLOUT: The PR battle continues today with MSG running an ad in the N.Y. Times sports section and the N.Y. Post excerpting comments from unnamed TWC execs. One is from November 10, 2011, stating: “Local sports is the last must-see must-have content.” The other is from May 23, 2011, stating: “Sports content is among the most import important content we provide to our customers..." The ad reads, "We agree, and all we've asked is that Time Warner Cable value our programming the same as other TV providers. No more. No less." Meanwhile, TWC runs an ad in the N.Y. Daily News that reads, "Sometimes Sports Fans Have To Hang Tough." It also includes the Knicks, Rangers and Devils games available to TWC customers during January that will air on other available cable outlets. This comes after MSG ran a half-page ad in yesterday’s N.Y. Times with the headline, “The Knicks Are On MSG Tonight!” The ad included the text, “But not if you’re a Time Warner Cable subscriber.” The ad went on to explain the dispute to viewers and drive customers to MSG’s website for more information (THE DAILY). In Buffalo, Mark Sommer noted watching games for Sabres fans in the foreseeable future “may come down to subscribing to Direct TV or FiOS, or attending a local bar carrying one of those.” MSG today is holding a viewing party at one local bar where “free chicken wings will be offered along with ticket and merchandise giveaways.” The article as of press time had 29 comments from readers (BUFFALO NEWS, 1/2).