As MSG Networks-Altice feud continues, two lawmakers propose bill to have cable companies refund customers

Two federal lawmakers have introduced legislation that would require cable companies to refund customers for missing programming for which they have paid.

Rep. Pat Ryan, a Democrat from the Hudson Valley, and Sen. Chris Murphy, a Democrat of Connecticut, announced on Friday the introduction of the “Stop Sports Blackouts Act,” largely in response to the ongoing dispute between MSG Networks, the company that carries the broadcasts of the Knicks, Rangers, Islanders and Devils, and Altice, the parent company of Optimum TV.

Many of Ryan’s and Murphy’s constituents are among the approximately 1 million households that subscribe to Optimum and have missed numerous games since Altice pulled the channel 12:01 a.m. on Jan. 1.

As Democrats, Ryan and Murphy would need Republican support to get the measure approved in GOP-controlled Congress. No Republicans immediately offered support of the bill Friday. Long Island Reps. Andrew Garbarino (R-Bayport) and Nick LaLota (R-Amityville) didn’t immediately comment.

Ryan and Murphy called for customers to be compensated for the programming they have missed.

“I don’t see why this is even a debate — cable companies simply should not be able to advertise and charge for services they are not providing,” Ryan said in a news release. “On behalf of fans across the country, we’re putting down a marker: Everyone will get their money back when a blackout stops them from watching TV, no questions asked."

Altice responded with a statement that read, in part, "Optimum has been focused on limiting customer disruption for those who want MSG Networks while ensuring customers who do not want it have affordable options to transition to. ... Over the last month, we have spoken with many customers who have been satisfied with our solutions-oriented approach."

Altice has offered discounts and gift cards — some running into the hundreds of dollars — to customers who threaten to disconnect its service, but there has not been a blanket rebate for the absence of MSG Networks. Under the expired contract, the network cost Optimum approximately $10 per month per subscriber to carry.

The news release said the bill would direct the FCC to require distributors to offer rebates when blackouts occur because of carriage disputes.

“It’s not surprising that elected officials are engaged and standing up for their constituents," MSG Networks said in a statement. "We appreciate Senator Murphy and Congressman Ryan’s efforts to fight for sports fans who are stuck paying for content they aren’t receiving, while Altice pockets their money."

“Our bill is simple: If cable companies can’t provide the service you’re paying for, they owe you a refund,” Murphy said in the news release.

The stakes are high for both sides, each of which is debt-laden and fighting the headwinds of the cord-cutting era.

For Altice, the priority is to keep internet customers, a business with much higher profit margins than carrying television channels. MSG Networks, meanwhile, is paying a heavy financial price during the standoff. Analysts at Guggenheim, an independent investment bank, estimate that 33% of MSGN’s revenue comes  from Altice subscribers.

Earlier this month, New York Attorney General Letitia James warned that she is monitoring the dispute to make sure that customers are receiving the services they're paying for.

The 10-month standoff between MSG and Cablevision in 1988-89 ended after New York State passed a consumer rights bill that forced the issue.

— Yancey Roy

By Neil Best

neil.best@newsday.com@sportswatch

Neil Best first worked at Newsday in 1982, returned in 1985 after a detour to Alaska and has been here since, specializing in high schools, college basketball, the NFL and most recently sports media and business.