City January 12, 2012 8:58 AM

Time Warner and MSG Affecting Everyone

Time Warner and MSG Affecting Everyone
By Kyle Gunn-Taylor:

Pulling into an empty parking lot at a South Buffalo establishment during a Sabres game is like Maple Leafs goaltender Jonas Gustavsson giving up a goal to the slumping Buffalo attack, it just doesn't happen.

Actually it happened Tuesday, however, because of a dispute that has two wealthy companies putting Sabres broadcasts, and fans, in the dark.

The squabble between Time Warner Cable and MSG is a feud that mirrors the recent NBA and NFL lockouts, two entitled entities fighting over what should be pennies to them, but an insulting fortune to the general masses.

Time Warner posted profits of over $1-billion dollars in the first 9-months of 2011.  MSG, a much smaller company, had profits of close to $50-million in the same period.  The bickering is cutting into profits on both sides, as people switch from Time Warner to other providers and MSG loses eyes on their product.

2charlie-obriens-NY-Buffalo.jpg
Charlie O'Brien's (photo) is a neighborhood place where people gather for a bite and a drink and the chance to cheer for their teams in a collegial atmosphere. The city is littered with places like it, and the fans that typically pack the bar for the games they cannot attend.  These establishments and their patrons are suffering most from the dispute over the percentage increase MSG wants Time Warner Cable to pay to carry the sports networks.

To places like Charlie O'Brien's, one of South Buffalo's most happening bars during Sabres contests, the impending fear has become reality, "Usually during games every barstool is occupied," said owner Dino Pinelli Jr.

While these two media gluttons argue over who is getting the biggest piece, some fans are left wanting, but hurting in a real way are small businesses like Charlie O's, "Zero bar crowd," Pinelli said of the post-dispute Sabres fans.

Although places that use Time Warner to provide entertainment to their patrons are free to change providers, some like Pinelli still hope to avoid the aggravation of switching.

"We made calls to Time Warner," said Pinelli, "But they aren't willing to do anything to keep me as a customer."

Although Pinelli said it was too soon to tell how the situation is affecting his business monetarily, he will surely be looking into making a change in the near future should the impasse not reach a timely conclusion.

When asked why he hasn't yet switched providers, Pinelli claimed they are in the process of searching for a different network, but it's hard to know exactly which provider can meet all of the establishments needs.

Buffalo is not alone in this squabble as MSG broadcasts the Knicks, Rangers, Devils and Sabres into homes across New York State, where Time Warner Cable is the second largest service provider, behind only Comcast Cable.

As many fans of these different teams scramble to find ways to watch their favorite teams, advertisers who have paid top-dollar for their names to be represented by the broadcast of these games suffer as well.

Should the games not be broadcast for the rest of the season, even with the ratings dropping from 8.3 to 3.2 that occurred in the first game after the network went black; the Sabres will still finish third in ratings for the season in all NHL markets, as Buffalo is typically the top-selling American hockey market. 

The most obvious solution for the fans who want their Sabres can be found by simply switching to a different provider; Verizon or DIRECTTV.

Another way Sabres fans have taken to watching their team involves a recent internet sports-phenomenon called peer-to-peer sharing. Many websites have catered to the nationwide sports fans by providing every game on any given night and several links to the action.

Technically, peer-to-peer sharing is walking a thin legal line and can involve copyright infringement, but in practical terms, droves of fans have taken to watching their teams on the computer.  Time Warner Cable and MSG are leaving fans with very few options.

What is the City of Buffalo doing to combat the problem? According to a press release on Thursday, January 5, 2012:

"The leadership of the City of Buffalo Common Council, Council Members Richard A. Fontana, Demone A. Smith, and Bonnie E. Russell, have sent a letter to New York State ("NYS") Attorney General Eric T. Schneiderman asking his office to intervene in the impasse in negotiations between Time Warner Cable ("TWC") and the MSG Television Network.

It is the position of Council leadership that this dispute has the potential to cause significant fiscal harm to the City of Buffalo and its taxpayers.

Pursuant to a franchise agreement overseen by the NYS Public Service Commission, the City receives five percent of TWC's gross revenue dependent upon the number of City of Buffalo subscribers to its service.

In the past this agreement has contributed approximately 2.5 million dollars per year in revenue to the City. If the number of City subscribers to TWC decreases, the City will lose a significant amount of funds, consequently impacting the City's finances and budget."

Any way you slice it, this problem is negatively affecting all parties involved and it makes no sense, how these two media giants haven't yet found a solution to this problem.

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Comments

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Affecting

Score: 2 ( 6 votes ) Vote up Vote down Report this comment

Kyle: a nit to pick: I believe the term you are looking for is "Affecting", not "Effecting" in your title.

We effect change (cause change to happen), but changes affect us (they have consequences for us).

Score: 0 ( 4 votes ) Vote up Vote down Report this comment

In all honesty, I haven't missed them at all. I find myself doing things where my time's better served. If they were tearing up the league I would imagine I'd feel differently. But they've been brutal to watch this season.

Score: 2 ( 8 votes ) Vote up Vote down Report this comment

I live down in Warren, PA and I have Dish Network. MSG and Dish have been in a dispute for over a year and a half now. I signed up for Dish to get MSG knowing I could get all the Sabres games because Northern PA is a Buffalo market. I saw 2 games last season and the MSG channels disappeared and I missed the rest of the season - and so far missed the entire year this year as well.

Something should be done at a federal level to regulate this crap.

Score: 0 ( 10 votes ) Vote up Vote down Report this comment

Online, HD streaming - just like Gamecenter except for in-market games.

Perfect solution - MSG could directly collect revenue from viewers, many viewers who only have cable for the Sabres games can avoid paying upwards of $100/month for a boatload of useless programming. Personally, I'd be glad to pay something like $10-$15/month directly to MSG during the season for HD streams that I can get directly on my ROKU box.

Score: 10 ( 10 votes ) Vote up Vote down Report this comment

NHL blackout rules don't allow for it. I'd love it if that could happen but we are a long way off from that, unfortunately.

replied to townline
Score: 0 ( 0 votes ) Vote up Vote down Report this comment

Has nothing to do with NHL blackout rules. In fact the NHL has been working on making it happen - last year they were in talks with youtube to stream live in-market games. The only thing preventing it is the local broadcast partners, e.g. MSG. They have the rights to 72 sabres games a year, locally. They could choose to directly stream the games if they wanted. In fact Ted Black said this past week that the sabres asked MSG permission to stream the game online. MSG denied it. The reason in-market games are blacked out on gamecenter is because the local broadcast partners, who make money off of people watching their channel, won't allow it. Not the NHL.

replied to LiveFastDie
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I am a huge fan and season ticket holder and I can honestly say I don't care. This is not being a fair weather fan either. If the team give it thier best and lost games (ie 2011 Bills) I could forgive them and watch, but this team is just no fun to watch.

Score: 1 ( 7 votes ) Vote up Vote down Report this comment

I've had Time Warner for a number of years in both NYC and now in Buffalo, and the only thing I can say about them aside from their incompetent customer service is that each and every year I've subscribed they've had some snot with a local network. Last time around it was ABC in NYC, prior to that I think it was NBC or CBS.

Itll probably just keep happening for time eternum under the guise of saving their customers money, but I cant help but notice that my Time Warner bill is the ONLY bill I get that has stayed the same price as it was in NYC. There's something seriously wrong there.

Its a shame that there are so few other cable providers around here to choose from. Its a sad day when all you can hope for is Verizon to come and save ya.

Score: 0 ( 0 votes ) Vote up Vote down Report this comment

Being in North Buffalo, I do not have access to DSL, and Fios has not commited to the city for another five freaking years. So in order to have cable, phone and internet, my options are limited to Verizon (Direct TV), and Time Warner for Internet.

I have no brand loyalty to time warner, and would love to dump there asses for seemingly paying more and more for less and less services. And being a huge Hockey find i am beside myself with ANGER...but am stuck. This is not competition it is a freaking Monopoly. DROP TIME WARNER!

Score: 1 ( 3 votes ) Vote up Vote down Report this comment

Arch -

Although FIOS TV is not available in Buffalo, Verizon fiber optic internet and phone are available in may parts of north Buffalo (and Buffalo in general). Streaming games and TV is possible via multiple websites.

replied to Arch
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When Terry Pegula got in front of a TV microphone and proudly announced that the Sabres were not a business "if I want to make money, I'll go drill an oil well" - a whole lot of players agents were listening. And so was MSG.
He needs TV to get his beloved team in front of his beloved brethern. Now he's getting a shake down. Mark my words, it will be Pegula's check book that ends this impasse.

Score: 0 ( 2 votes ) Vote up Vote down Report this comment

Bars better hope all these articles don't lead the providers to change the price points for commercial establishments.

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I have to say I do not miss SABRES at all and I have been watching since they came into the league. I learned that I can do all kinds of other things. When their play is back to par I may watch them again but, alas, with a different eye. The only thing that could change my perspective back to the die-hard fan is a serious run for the cup. It's like eating at a crummy restaurant: why go back when all they serve-up is the same old garbage. These players don't even care and it shows in their play. Not being on TV is not affecting their game one bit. They are playing at their skill level and it's pathetic. Of course, look at all the years the Laughs (I mean the LEAFS) took to become viable. Maybe the silver lining in this whole MSG-Time Warner debacle is the Sabres Franchise will have to make some positive changes to stem the tide of despair and indifference among the fan base. Too bad. And the franchise was off to such a glorious start.

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