Dispute Keeps MSG Dark in N.Y.

Carriage Battle Could Rage Through End of NHL, NBA Seasons

By Mike Farrell -- Multichannel News, 2/13/2012 12:01:00 AM

Basketball and hockey fans in New York may have a longer-than-expected wait for the return of their local teams on Time Warner Cable.

The operator’s weeks-long carriage dispute with MSG Networks could last through the end of the 2011-2012 National Basketball Association and National Hockey League seasons, network officials said last week.

Bair said the dispute is primarily over rates, adding that MSG is only seeking fair market value for its content.

“We do think that there will ultimately be a deal, but we can’t predict when and we can’t offer any assurances that it will even happen during the 2011-2012 seasons,” Bair said.

MSG carries New York Knicks NBA games; that league’s lockout-shortened season ends on April 26.

The networks also carry games from four teams — the Buff alo Sabres, New Jersey Devils, New York Islanders and New York Rangers — whose season ends April 7. MSG Media parent Madison Square Garden also owns the Knicks and Rangers teams.

Time Warner Cable has claimed — and MSG has disputed — that the network had originally asked for a 6.5% rate increase but changed that demand to a 53% hike as the Dec. 31 deadline loomed. The MSO added that the network refused its request for an extension in December, which would have allowed cable customers to continue to see games on the channel.

“They are still demanding a 53% increase; our hope is that they will go back to their pre-December demands and close a reasonable deal,” TWC spokeswoman Maureen Huff said in a statement.

While MSG said the carriage dustup has not had a big effect on the channel — Bair claimed that ratings for MSG are up in the calendar fi rst quarter and that CPM prices for the channel are rising — that might change. TWC subscribers number about 30% of MSG’s total viewers and 17.5% of Fuse watchers.

“Time Warner is a signifi cant distributor of ours and will have a material impact on our results for as long as this dispute continues,” Bair said.