Comcast Drops Rangers, Knicks Games b/c No One Watches

Madison Square Garden Network traded barbs with Comcast on Friday as the two media companies dispute over rights fees that halted pro sports content on the service.

The broadcast deal between MSG Networks and Comcast expired on Sept. 30, leaving sports viewers in the New Jersey and Connecticut areas without content featuring the New York Knicks and the National Hockey League’s Rangers. Both are controlled by MSG. The network also airs Devils, Islanders and Major League Soccer games. The NBA season starts on Oct. 19, while the NHL season starts on Oct. 12.

MSG called the failed negotiations “disappointing,” claiming Comcast attempted to “force us to accept terms they’d never agree to for their own regional sports networks, including SNY in New York,” a MSG statement to CNBC said. SNY is another regional sports network that airs Mets MLB games.

MSG’s statement also said Comcast rejected proposals similar to deals MSG has with other carriers.

MSG Networks also planted a banner across its website alerting consumers of the dispute. The network is owned by Madison Square Garden Entertainment Corp., which trades on the New York Stock Exchange and has a $2.4 billion market cap.

It’s not clear how much Comcast pays MSG to distribute its channels. The network generated total revenues of $166.1 million, according to its fourth-quarter earnings report last August. But the report added its “affiliation fee revenue decreased $9.7 million, primarily due to the impact of a decrease in subscribers of approximately 7%.”

Comcast, the parent company of CNBC, defended its decision to drop MSG. In a statement, it wrote its internal data shows “95% of all customers who received MSG over the past year did not watch more than 10 of the approximately 240 games it broadcast.” Comcast doesn’t serve residents of New York City, who instead get cable from companies including Charter, Altice USA and Verizon.

Said Comcast: “We don’t believe that our customers should have to pay the millions of dollars in fees that MSG is demanding for some of the most expensive sports content in the country with extremely low viewership in our markets.”

On Xfinity’s website, the company wrote it would lower its regional sports network (RSN) fees to customers in “applicable areas” impacted by the decision to drop MSG Networks.

In media circles, this dispute could be a sign RSNs that could impact local pro team revenues.