MSG teams with Buffalo and Rochester stations to squeeze Time Warner Cable

MSG struck a unique deal with Buffalo, N.Y., NBC affiliate WGRZ-TV and Rochester-based NBC affiliate WHEC-TV which will allow it to use Saturday's Buffalo Sabres-Tampa Bay Lightning hockey game to encourage Time Warner Cable (NYSE: TWC) subscribers to drop the cable provider for rivals such as DirecTV (Nasdaq: DTV).

The regional sports network pulled its network from Time Warner Cable after its carriage deal expired on Dec. 31, which impacted fans of the Sabres, the New York Knicks, the New York Rangers and other teams featured on MSG. Time Warner Cable distributes WGRZ and WHEC on its basic cable tiers in Buffalo and Rochester, which will allow its subscribers to watch their first Sabres games on cable in six weeks.

But MSG hasn't yet agreed to distribute additional games on WGRZ or other stations carried by Time Warner Cable, since that would reduce its leverage with the cable MSO. Instead, the network, which is controlled by Cablevision (NYSE: CVC) CEO Jim Dolan, noted in Monday's announcement that it will tout "special offers during the telecast that will alert fans on how to switch providers."

MSG and Time Warner face increased political pressure to settle their dispute. New York State Senator Mark Grisanti said Monday that he would co-sponsor legislation that could force the parties to arbitrate the dispute, and New York Attorney General Eric Schneiderman has also attempted to broker a deal.

For more:
- see the MSG news release
- WGRZ has this story

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