Governor Kathy Hochul calls for end to MSG Networks-Altice dispute, threatens public hearings

 Gov. Kathy Hochul on Monday expressed exasperation over what she called the “ridiculous dispute” that has kept MSG Networks off Optimum TV since Jan. 1 and directed the Department of Public Service to ensure consumers are being treated fairly.

“Enough is enough!” she said in a news release that announced the DPS had sent a letter to Altice, parent company of Optimum TV, requesting information and a plan for addressing the matter. If the company does not respond within five days, the department plans to schedule public hearings.

Altice removed MSG Networks, which carries Knicks, Rangers, Islanders and Devils games, from Optimum TV at 12:01 a.m. on Jan. 1. The sides have sought a new carriage agreement since then without success.

“New Yorkers are proud sports fanatics, and blocking Knicks, Rangers and Islanders fans from watching programming they’ve paid to watch is simply unconscionable,” Hochul said in the release.

“Denying fans access to live sports because of a ridiculous dispute between Optimum and MSG is unfair to New Yorkers and our patience has expired. This has gone on for long enough — it’s time for both sides to get back to the negotiating table and resolve this for the good of New Yorkers!”

In the letter, which is addressed from Department of Public Service CEO Rory Christian to Chris Bresnan, Altice’s senior director of government affairs, Christian asked Altice within five days to do the following:

• Describe in detail what cost-neutral option(s) Optimum intends to offer to those customers impacted by this programming dispute, when such option(s) will be available, and how customers can enroll.
• In the alternative, acknowledge if Optimum intends to provide those impacted customers a service credit for services they are no longer receiving.
• Finally, explain how Optimum intends to communicate its cost-neutral option(s) and/or customer credit information throughout its New York service territory.

The letter then read, “In the event that your response does not demonstrate customers are being held harmless during this dispute, you are hereby notified that the Department will conduct hearings as part of its ongoing review of this matter.”

Christian said in the news release, “Governor Hochul is giving voice to New York sports fans who are frustrated that they cannot view all their cable channels, and who should be entitled to a refund for services that they are unable to access or be provided with cost-neutral alternatives.

“The Department of Public Service will work diligently to ensure the cable companies protect customers.”

In response to the governor’s release, Altice issued a statement that read, in part, “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.”

The statement later added, “We look forward to working with Governor Hochul to fix the outdated programming model that does not align with how consumers watch TV today. In the meantime, while we help customers by offering a variety of more options, MSG Networks has done nothing to make their content more affordable and has made no effort to assist impacted fans.”

MSG Network released a statement that read, "We applaud Governor Hochul’s engagement and ensuring local sports fans have access to MSG Networks’ programming. We remain ready to negotiate with Optimum or enter binding arbitration to immediately bring our games back on the air."

Last week, New York Attorney General Letitia James and her New Jersey and Connecticut counterparts sent a letter to Altice USA CEO Dennis Mathew demanding that the company issue refunds for the programming that has been missed during the dispute.

Altice has provided reduced bills and in some cases gift cards worth hundreds of dollars to customers who call to complain or threaten to leave for competitors. But Altice has not provided a blanket refund for pulling MSG Networks.

Both cable companies such as Altice and regional sports networks such as MSG Networks have suffered from the era of so-called “cord-cutting” that has disrupted the traditional cable television programming bundle.

The current dispute affects about 1 million homes in the metropolitan area, with Long Island being particularly hard hit because it has such a high concentration of Optimum TV customers. 

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.