Altice USA, the parent company of Optimum, awarded hefty raises to top executives during a contract dispute with MSG Networks, while denying refunds to subscribers affected by the blackout of MSG channels.
Optimum's parent company, Altice USA, handed out substantial raises to top executives during a contentious contract dispute with James Dolan's MSG Networks. The raises came as Optimum refused to offer refunds to subscribers despite the blackout of MSG Networks channels. Dennis Matthew, CEO of Altice USA, saw his annual base salary increase from $1 million to $1.55 million, while Chief Financial Officer Marc Sirota's base salary jumped to $650,000 from $500,000.
Matthew also received a target annual cash incentive award of $3 million and an annual long-term incentive target of $10 million, according to SEC filings.These salary packages, approved by the company's board on February 4, were backdated to January 1, the same day MSG Networks' contract with Optimum expired. The two companies have been locked in a stalemate over carriage fees, with Optimum seeking to renegotiate the rate it pays to carry the channel. Before the contract expired, Optimum was reportedly paying James Dolan's MSGN over $10 per subscriber to carry the channel. The dispute has drawn the attention of New York Attorney General Letitia James and officials from New Jersey and Connecticut, who have urged Altice USA to issue refunds to subscribers who paid for programming they are no longer receiving. In response, Altice USA has defended its position, stating that it has been actively engaging with customers to provide personalized support, including defraying the cost of purchasing access to the Gotham sports app, which costs $29.99 a month. Altice USA has also argued that MSG Networks, like other regional sports networks nationwide, doesn't attract the same audiences as it once did, citing that approximately 50% of customers haven't tuned into MSG Networks in the past year. They contend that MSG Networks' requirement to be included in nearly every customer package, regardless of interest, is a burden on consumers.The situation highlights broader challenges facing the cable television industry as more viewers shift to streaming services. This trend has created tension between content providers and distributors over pricing and accessibility. The dispute also sheds light on the financial struggles of MSG Networks, which has been on the brink of bankruptcy and owes a group of lenders led by JPMorgan $829 million. To stabilize its finances, MSG Networks may seek external investment, potentially from a major media company
Technology Media OPTIMUM ALTICE USA MSG NETWORKS Cable TV Contract Dispute Blackout Refunds Executive Raises Streaming Services Cord-Cutting
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