Optimum cable television subscribers in multiple markets across the United States are experiencing a disruption in service as negotiations between Altice’s Optimum service and Nexstar Media Group, Inc. have reached an impasse. As of 5:00 PM ET today, Nexstar-owned broadcast stations have been removed from Optimum TV lineups. In total, Nexstar owns 200 local TV stations with ABC, CBS, FOX, and NBC stations, along with smaller stations like MyNetworkTV have gone dark on Optimum TV in the areas that Optimum offers TV service.
The core issue appears to be a disagreement over carriage fees and channel bundling. Optimum claims that Nexstar is employing an “all or nothing” approach, requiring Optimum to pay for and carry less popular channels like NewsNation in order to continue offering Nexstar’s broadcast stations. Optimum argues that this tactic forces customers to pay for content they don’t watch, citing low viewership numbers for NewsNation.
“Nexstar is demanding exorbitant rates, the highest of any broadcasting group,” an Optimum spokesperson stated. “Their insistence on bundling local channels with less popular ones is an anti-consumer tactic that harms our customers.”
“Altice has consistently made unreasonable and unprecedented demands of Nexstar, culminating with their decision to walk away from the negotiations,” said Michael Biard, Nexstar’s President and Chief Operating Officer. “Unfortunately, this seems to be a regular pattern of behavior for Altice, which dropped the MSG Network just last week, depriving millions of New York sports fans the opportunity to see their favorite teams in action. We understand the difficulty of Altice’s financial situation, burdened as it is by billions in debt, but the solution isn’t to force Optimum subscribers to continually pay more while getting less.”
Furthermore, Optimum criticizes Nexstar’s approach of bundling diverse stations and channels into a single negotiation, despite regional differences in programming and audience preferences. They argue that this disregards the unique needs and viewing habits of local communities.
Nexstar, on the other hand, has not publicly commented on the specifics of the negotiations. However, such carriage disputes are common in the television industry, often arising from disagreements over retransmission fees and channel packaging.
While Optimum claims to have offered an extension to keep Nexstar’s content on air while negotiations continued, Nexstar reportedly declined the offer. This has resulted in a blackout of Nexstar-owned channels for Optimum subscribers, leaving many viewers without access to local news, sports, and other programming.
Both companies have expressed a commitment to reaching a resolution. However, with no immediate signs of a breakthrough, it remains unclear how long the disruption in service will last.
This situation highlights the complexities of the television industry and the challenges faced by cable providers and broadcasters in negotiating carriage agreements. As streaming services continue to gain popularity and disrupt traditional television models, such disputes may become even more frequent.
For now, Optimum subscribers impacted by the blackout are left with limited options. They can explore alternative ways to access local programming, such as using an antenna for over-the-air reception or subscribing to a streaming service that offers local channels. The outcome of the negotiations between Optimum and Nexstar will ultimately determine when and how these channels will be restored to Optimum’s TV lineups.
Correction: earlier, it was reported that all of Nexstar stations went dark on Optimum. Only stations in the Optimum markets went dark on the network.