MSG pulls plug on Time Warner Cable

Regional sports network MSG pulled its feed from Time Warner Cable (NYSE: TWC) after its contract expired on Dec. 31, leaving subscribers without games from the NBCA's New York Knicks and the National Hockey League's New York Rangers, Buffalo Sabres, New York Islanders and New Jersey Devils.

Time Warner Cable said that MSG, which is run by Cablevision (NYSE: CVC) CEO Jim Dolan, had agreed to a 6.5 percent increase in its license fee, but that MSG demanded a 53 percent increase. Time Warner Cable senior VP of content acquisition Mike Angus said in a statement that MSG "reneged" on a deal for a 6.5 percent increase, and suggested that MSG wanted more money to help cover the costs of renovations at Madison Square Garden.

Time Warner Cable subscribers will be able to watch some Knicks games and hockey games on NBC or NBC Sports Network, the Comcast-owned cable sports network formerly known as Versus. But the dispute could see some hardcore hockey and basketball fans jump to Verizon's (NYSE: VZ) FiOS TV or AT&T's (NYSE: T) U-verse TV. Verizon and AT&T won an FCC ruling late last year that compelled MSG to offer the telcos the HD version of its network.

If the dispute lasts for several weeks, some Time Warner Cable subscribers in the New York metropolitan area could jump to AT&T or Verizon. While many Time Warner Cable subscribers in the Buffalo area are big hockey fans, Verizon doesn't offer FiOS in Buffalo.

For more:
- See statement from Time Warner Cable
- The Buffalo News has this story

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