NY Attorney General to broker Time Warner Cable-MSG talks

New York Attorney General Eric Schneiderman is pressuring MSG to strike a carriage deal with Time Warner Cable (NYSE: TWC), and plans to meet with both parties this week in hopes to broker an agreement.

MSG, which is controlled by Cablevision (NYSE: CVC) CEO Jim Dolan, pulled its feed from Time Warner Cable after its contract expired on Dec. 31. Time Warner Cable has complained that MSG is demanding a 53 percent increase in its monthly license fee, and that it's also insisting that the MSO carry Fuse, a music video channel owned by MSG parent MSG Media.

"We have had constructive discussions with Time Warner Cable and MSG networks as part of an ongoing effort to facilitate progress in their talks," Michelle Duffy, Schneiderman's press officer, told The Buffalo News.

Needing a politician or regulator to mediate a carriage dispute does not bode well programmers or distributors, and creates negative publicity for the cable industry. But disputes involving cable programming are often resolved once a politician gets involved, especially when it comes to sports programming.

When the National Football League attempted to distribute a New England Patriots-New York Giants game on NFL Network in 2007, viewers revolted, since the Patriots were 15-0 at the time, and poised to finish the season undefeated. The league caved after Sen. John Kerry (D.- Mass) interceded, and simulcast the game on CBS and Fox. The Patriots won the game, but lost to the Giants in the Super Bowl.  

While MSG programming, including pro hockey and basketball games, isn't as valuable as NFL games, Schneiderman could gain support from voters who are big fans of the Buffalo Sabres, the New York Knicks and other teams carried by MSG if he is able to broker a deal.

For more:
- The Buffalo News has this story

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