It’s the holiday season which means it is a safe bet Time Warner Cable is in dispute with at least one of their programmers over rights fees. This year, MSG Networks is threatening to pull the plug on Time Warner subscribers if the cable operator does not agree to a wholesale rate increase in contract renewal talks.
MSG is letting cable customers know their favorite sports teams are facing a video blackout if the cable operator doesn’t sign a renewal by the end of the month.
Time Warner Cable’s Jeff Simmermon says MSG is demanding a 53% rate increase, and double that if the cable company doesn’t put back MSG Media’s Fuse music channel, which Time Warner dropped in many markets.
It turns out there is plenty of room to negotiate between MSG’s 53% request and what Time Warner thought it had earlier agreed to — a milder 6.5% hike. Time Warner spokeswoman Maureen Huff said if MSG gets their way, the sports network will become the most expensive channel on the cable dial — an expense that will inevitably find its way into the next rate hike for every cable subscriber.
The contract is due to expire Dec. 31. Time Warner says it won’t pull the channel from its lineup, effectively daring MSG to block reception by switching off Time Warner’s digital satellite authorization for the networks.
MSG and MSG Plus are in the crossfire, and the biggest impact from the loss of either will be felt in Buffalo and New York City.
[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WIVB Buffalo Dispute may kick Sabres off Time Warner 12-16-11.mp4[/flv]
WIVB in Buffalo warns Time Warner subscribers to brace themselves for the potential loss of the wildly-popular Sabres hockey team. (1 minute)
MSG is insane to ask for a 53% increase, I hope Time Warner stands their ground!
It appears Time Warner is playing a numbers game. Where does the 54% come from. Cablevision is trying to tie carriage of MSG and MSG+ to carriage of Fuse. So how is it that MSG is asking for a 54% increase, as part of the carriage agreement would have Time Warner add Fuse in addition to MSG and MSG+. Surely part of that 54% number is retransmission consent for another channel. Secondly, DirecTV has MSG and MSG+ along with Fuse along with a number of channels Time Warner doesn’t offer and DirecTV’s channel packages are quite a bit lower than… Read more »