Attorney General Letitia James is demanding that Altice USA, the owner of cable TV giant Optimum, refund customers who were impacted by the recent blackouts of the MSG cable channels.
In a letter sent on Feb. 5 to Altice USA chairman and CEO Dennis Matthew, James — along with the Attorneys General of Connecticut and New Jersey — demanded the company give automatic refunds to customers who have been denied access to the MSG channels they paid for as part of their cable plans.
The blackout resulted from contract disputes between the network and provider, with many finger-pointing over fees.
The letter follows James’ statement in January that called on Optimum and MSG to resolve contract negotiations in a timely manner so service disruptions would not impact New Yorkers. Altice ultimately removed access to Nexstar and MSG channels for its Optimum cable plan customers beginning in early January 2025.
Channels on Optimum
Nexstar channels, including WPIX local sports, The CW and NewsNation, were blacked out for over a week in January for Optimum customers. Service was restored on Jan. 18 after the channel and Altice USA reached a partnership agreement.
But MSG channels, which include exclusive coverage of New York sports teams, including the Knicks, Rangers, and Islanders, as well as the New Jersey Devils, have been blacked out since Jan. 1.
James said local sports fans should not wind up in the penalty box by having to pay for channels they have not been able to watch.
“Optimum customers have paid for channels to watch their home sports teams, but their cable company is not offering these channels while charging them anyway,” James said. “I am determined to secure a solution for New Yorkers who have had to endure these unfair blackouts and I urge Optimum and MSG to finally reach a deal so New Yorkers can watch their home teams.”
The attorneys doubled down in the letter, saying that Altice USA should automatically refund customers who have been denied access to the channels they paid for as part of their cable plans. They are demanding that Altice USA provide refunds to customers for the period of time that the MSG networks were blacked out.
Altice USA has not yet responded to James’ letter.
But in a statement to amNew York Metro, Optimum said the company has been focused on limiting disruption by providing customers with assistance and alternative solutions. Some of those solutions, the company said, include transitioning customers to new video offerings to save them an average of $25 a month.
“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,” the Optimum statement read. “As we have repeatedly said, the legacy video model is broken because distributors like Optimum continue to be handcuffed by programmers like MSG Networks who demand we make their content available to the majority of customers, regardless of actual viewer interest. It is this antiquated model, one that forces high fees and minimum penetration rates, that continues to drive up the costs of legacy video packages and gives distributors little flexibility to adjust prices – especially in an evolving TV landscape where consumers now have more choice than ever before.”
The statement also said “affordable, practical options” are needed for customers, adding that Optimum launched more “affordable” packages with partner programmers.
“This is also why we’re advocating for our customers and pushing back on MSG’s approach,” the statement continued. “Optimum remains focused on fighting for our customers and offering solutions that provide the content they want to watch at affordable prices.”
The blackouts have impacted Optimum customers in the tri-state area, including New York City.
The station blackouts have caused frustration and anger among local sports fans and people who subscribe to Optimum. Many have expressed their feelings on social media to complain about the outages and demand that the companies reach a deal.
It is unclear when or how the ongoing MSG dispute will be resolved, but the state attorneys’ involvement could help pressure Altice USA to reach a deal.
