Having both ramped up their streaming tech wherewithal to take their respective regional sports networks over the top, the YES Network and MSG Networks are teaming on a new joint venture, Gotham Advanced Media and Entertainment.

According to an announcement published by both companies Thursday, “GAME,” as it will be acronym-ically known, will “offer turnkey digital content distribution services, including platform technology, operational support and comprehensive data analytics to third parties, utilizing the combined technical and operational expertise each company has garnered from the respective successful launch and operation of the YES App and MSG Plus.”

Major League Baseball's New York Yankees are the majority owners of the club's RSN, the YES Network, which has Sinclair Broadcast Group, Amazon and various private-equity interests as minority owners. The YES Network, which is also the RSN home of the NBA's New York Nets, launched a $16.99-a-month direct-to-consumer app back in March of last year. 

MSG Entertainment, which was spun off by the erstwhile Cablevision, took MSG Network — RSN home of the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils, New York Red Bulls and Buffalo Sabres — DTC last summer. 

The JV is somewhat reminiscent of Major League Baseball's formation of MLB Advanced Media after the league began developing pioneering live-streaming tech back in the aughts. That subsidiary, later rebranded as BAMTech, was sold to Disney back in 2016 for $1 billion. 

“As we continue to capitalize on the momentum created by YES’ award-winning digital offerings, we look forward to collaborating with MSG Networks to further elevate the fan experience,” YES Network CEO Jon Litner said in a statement.  “With the launch of GAME, we are excited to develop new product offerings, and premium features and functionality, to serve audiences like never before, while also providing a scalable tech solution for third-party content owners seeking to deliver state-of-the-art streaming experiences to their customers.”

The broader regional sports network business may be struggling with bankruptcy and restructuring, but Madison Square Garden Entertainment is currently “knee-deep into the product build on” MSG Plus, the direct-to-consumer streaming extension for the cable channel home of the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils, New York Red Bulls and Buffalo Sabres.

This status report comes courtesy of Dave Schafer, senior VP of product, technology and operations for MSG, who spoke during a panel presentation Sunday at NAB Show in Las Vegas hosted by one of MSG Plus’s lead technology partners, Harmonic. 

Debuting sometime this summer — Schafer didn't pin down a date — MSG Plus will include a higher monthly price point ($29.99-a-month) vs. other RSN DTC efforts, including Bally Sports Plus ($19.99 monthly). 

The higher price point for a rabid market that might have unforeseen price flexibility might be a smart play. Likewise, adding a $9.99 pay-per-view option to sell individual games might also open up market segments. 

"We haven’t seen this on the market yet, but we see an opportunity here," Schafer said. 

At NAB, technology companies including Harmonic and Quickplay are touting their roles in building the new MSG streaming service. 

Like all RSNs, MSG faces the challenges of linear distribution cord-cutting, as well as spiraling team TV-licensing costs. However, Schafer told Next TV that it’s the performance of MSG Network’s TV Everywhere app that has spawned belief that the New York-area market is ready for such a streaming product. 

“Obviously, it’s high pressure,” Shafer said, “but we really want to deliver high-quality product to our fans.”

MSG Networks said it is launching two new streaming products aimed at bringing its content to audiences beyond the pay TV universe.

It will be launching MSG Plus, a direct-to-consumer streaming product, this summer. It is also starting MSG SportsZone, a new free ad-supported streaming television (FAST) channel.

MSG’s moves come at a time when the regional sports network business is under pressure from cord-cutting, which has cut into their available audience. Bally Sports last year launched a direct-to-consumer app, as has NESN in Boston.

“MSG Networks is delighted to be able to offer fans more ways to watch our compelling and award-winning content,” Andrea Greenberg, MSG Networks president and CEO, said.  

MSG Networks said that MSG Plus will enable fans in its region the ability to access its coverage of local National Basketball Association and National Hockey League teams. In greater New York City, its MSG and MSGSN channels carry the New York Knicks, New York Rangers, New York Islanders and New Jersey Devils. A separate feed targeted to upstate New York carries Buffalo Sabres games. 

Fans who do not subscribe to a pay-TV service can get MSG Plus for $29.99 a month or $309.99 a year and get access to all games shown on the networks in their area. Fans can also buy single games for $9.99 each through the app.   

MSG Plus will be made available free to pay TV subscribers, replacing the MSG Go TV everywhere app.

MSG SportsZone was recently launched nationally and features a mix of original programming from MSG’s content library. It is currently available on Vizio and Plex. 

“The introduction of MSG Plus this summer will be a significant milestone for our company and will offer a mix of subscription options for fans who do not subscribe to a traditional, bundled pay television subscription,” Greenberg said in a release. “MSG Plus will also provide significant value for our participating traditional distribution partners by offering access at no additional cost to their subscribers who receive our networks. In addition, we are pleased to introduce MSG SportsZone, a new platform that expands our reach nationally and provides us additional opportunities to monetize our archive and other non-game content.” ■

MSG Networks said it will be showing 12 wagering-oriented BetCast simulcasts of New York Knicks and Rangers games this season on MSGSN, presented by DraftKings.

The first BetCast of the season will air Wednesday night with the Knicks playing the Atlanta Hawks.

Last season, MSG aired its first BetCast telecasts during five Knicks games. When the Rangers appear on BetCast on December 5 versus the New Jersey Devils, it will mark the first MSG Networks BetCast featuring an NHL game.

MSG Networks integrates DraftKings odds into the BetCast and highlights specific bets and parlays on the air that will be available for viewers exclusively within the DraftKings Sportsbook app. The simulcasts are also expected to include appearances by various on-air personalities from DraftKings.

The alternate Knicks telecasts will feature a rotating mix of sports betting experts and on-air talent from the network’s roster of shows, including Alex Monaco, Keiana Martin, Sean Little, Erik Coleman, Jeff Johnson, Harrison Sanford, Kazeem Famuyide and eight-year NBA veteran John Henson.

The hosts will deliver live reaction to all the betting action on the game from the spread, team totals, player props and more, as well as provide in-game updates to the odds and lines as they move throughout the night.

During hockey games, Rangers reporter Michelle Gingras and former Rangers and Devils center and two-time Stanley Cup Champion Scott Gomez will break down the play on the ice from a sports betting perspective.

All BetCast coverage will also be available to view on MSG Go, the network's live streaming and video on demand platform. ■

MSG Networks, the home of the storied New York Knicks and New York Rangers, will be televising a pickleball tournament this weekend, cashing in on the surprising popularity of what MSG bills as one of the fastest-growing sports in the country.

MSG Networks will be televising the final Major League Pickleball tournament of the year this weekend, which will feature 48 players and 12 teams competing in Columbus, Ohio.

Also: Tennis Channel Serves Up Celebrity Pickleball

The winner walks away with $100,000, the largest prize purse in pickleball history.

MSG SportsNet will feature live wall-to-wall coverage of the tournament starting Friday with the preliminary rounds. Quarterfinals will appear Saturday with the semifinal and final matches on Sunday.

Also: CBS To Air Celeb Pickleball Tournament Special

According to USA Pickleball, the sports combines elements of tennis, badminton and ping-pong. It can be played indoors or outdoors on a badminton-sized court with a slightly modified tennis net. It is played with a paddle and a plastic ball with holes. There are singles matches and doubles matches. ■

MSG Networks said that it will be changing the name of its MSG Plus channel to MSG Sportsnet.

The switch is effective Sept. 26, coinciding with the start of the National Hockey League preseason.

The New York Islanders will be facing off against the New York Rangers in the preseason opener for both teams.

The Plus has gotten overused, particularly by streaming services including Disney Plus, ESPN Plus, Apple TV Plus, AMC Plus, Discovery Plus and WE TV Plus, as well as FASTs Samsung TV Plus and Vizio WatchFree Plus.

MSG SportsNet, or MSG SN for short, will continue to deliver a full schedule of live NHL games of the Islanders and New Jersey Devils. It will also carry boxing, horse racing, tennis, lacrosse, high school football and other content.  ■

During the Stanley Cup Playoffs, a triple-overtime game might be enough to hold fans' interest. 

But for other moments, MSG Networks and other media companies are turning to tech companies like LiveLike to boost engagement during games with interactive features designed to keep viewers tuned in and paying attention.

LiveLike has been working with MSG Networks all season, adding elements to Knicks and Rangers games.

Now with the Rangers in the playoffs, they’re boosting their efforts.

The enhancements come at a time when sports rights are rising, cord-cutting is cutting into traditional TV viewership and the need to hook younger viewers is intensifying.

"We essentially provide our partners–broadcasters, teams, media companies with audience engagement tools. We basically are telling them with LiveLike you can engage your community, make games a more interactive, engaging and fun experience," Miheer Walavalkar, co-founder and CEO of LiveLike, told Broadcasting+Cable.

Importantly, with LiveLike, the fan interaction is taking place on media properties owned by the team or network, as opposed to on social media platforms.

Some interactions take place on the big screen, others take place on those phones that fans, especially young ones, are using at all times, including when they’re watching games on TV.

In addition to MSG, LiveLike has worked with WarnerMedia during March Madness and the NBA season, the Golden State Warriors, NASCAR and with a number of European broadcasters.

“Our partners are seeking reductions in churn, they’re seeing higher engagement times, they’re seeing more repeat usage and repeat behavior,” Walavalkar said. “Every single client that we are working with is renewing for more and for longer.”

Some of what LiveLike engineers are polls or trivia contests for fans. During the playoffs on MSG Network, LiveLike has constructed a leaderboard so that participating fans can see how well they’re doing relative to other viewers.

Fans can also use emojis to let other fans know how they’re feeling without tapping a full message into applications like Twitter or What’s App.

Walavalkar says rewarding loyalty is becoming an increasingly important part for engaging and retaining fans and viewers. “We’re saying you should reward the most loyal fans,” he said. “We give our partners tools to track their engagement and to incentivize that engagement, to give people points and badges and rewards.”

During the regular season for the Knicks and Rangers, LiveLike saw an engagement rate of 96.5% of fans exposed to the features choosing to use them. During the first two months the features were available, engagement grew 30%, with 21% of fans coming back for more.

In addition to keeping viewers tuned in, the features generate revenue because they can be sponsored by brands. “That’s the holy grail. Engagement for the sale of monetization,” Walavalkar said.

The other hot area in sports TV is gambling. While LiveLike does not have its own sports book, it can help teams and networks steer fans towards apps where they can make wagers.

LiveLike works with Sportradar, which provides official data for several sports leagues and now has a betting product incorporating LIfeLike tech.

"While these features appear popular, one must be careful not to let on-screen gimmicks overwhelm and irritate fans," Walavalkar said. While at this point, there are few cut-and-dried solutions, LiveLike offers clients certain best practices from an editorial standpoint.

“We have found a lot of engagement pregame where people come in and make their predictions. During the game they find out whether they were right or wrong. The same thing happens at half time. So you’re not ‘bothering’ during the game,” he said. “Having said that, you will find most of the chatter within a community comes during those peak moments. “I can’t believe we missed that shot’ or ‘I can’t believe we’re going into overtime.’ If you’re making it fun and engaging, you can make it through the game. If you’re making it more factual and testing knowledge, it’s better to do it pregame and at halftime and leave people alone during the game.”

LiveLike is backed by venture capital money, with money coming from CAA, Greycroft Partners and others. The late David Stern, the former NBA commissioner, was an early investor.

The company generates revenue mostly through licensing its tools, but also through an advisory business that helps clients set up and use their tools.

Increasingly, LiveLike technology is being built into digital providers Deltatre and Sportradar, making it easier for networks to add interactivity to their programming workflows. 

“The actual implementation takes a few weeks at most. That’s the beauty of what we built. It's not meant to be difficult once you decide you want to do this,” Walavalkar said. ■

The popularity of gambling based programming -- driven by gambling-based advertising -- has MSG Networks pressing its bet on its BetCasts, which feature commentary and analysis through a sports wagering lens.

MSG, which aired two BetCast versions of New York Knicks games in February, said it will air three BetCast telecast through the end of the month, starting Friday night, when the Knicks take on the Washington Wizards.

The BetCasts appear on MSG Plus opposite the more traditional telecast on the main channel. 

The simulcasts will include a mix of sports betting talent from MSG, including Alex Monaco, host of The Bettor Half Hour, Jeff Johnson and Erik Coleman, co-hosts of The Betting Exchange, sports betting experts Alex Glaze, Adam Ronis and Sean Little, and Kazeem Famuyide, co-host of MSG PM. ■

Sinclair Broadcasting Group’s Diamond Sports Group (home of its regional sports networks) dodged a big bullet last week by hammering out a carriage deal with the National Basketball Association for its upcoming direct-to-consumer streaming service and negotiating $600 million in additional financing that secures its survival for at least another year. But the sports giant still faces pressure in the next few months to reach deals with Major League Baseball and Charter Communications. 

Sinclair reached a deal with the NBA on January 13, about one month after securing a similar arrangement with the National Hockey League on December 3.   While both of those deals include rights for Sinclair to stream games via its direct-to-consumer service, slated for the second quarter, the content company still has to strike deals with Major League Baseball, which in the past has been critical of the company. 

Sinclair said last year that it had rights deals with four teams -- and some have speculated those are the  Detroit Tigers, Milwaukee Brewers, Miami Marlins and Kansas City Royals -- for its DTC service. But the company still needs to secure DTC streaming rights for another 10 MLB teams. The regular season is expected to begin around April 1, although a possible lockout of players by team owners that need to renew a bargaining agreement with their union could push that date back days or months. In an interview with the Wall Street Journal  January 13, Sinclair CEO Chris Ripley said the DTC product would have a soft launch in the second quarter, rolling out more broadly in Q3. 

DTC service is critical, and so is the linear carriage deal with Charter, which is set to expire in Q1. Charter has about 15 million video subscribers in 41 states, including many where Sinclair has an RSN presence.  In a research blog earlier this month, LightShed Partners partner and media and telecommunications analyst Richard Greenfield predicted Charter would place the Sinclair RSNs on a separate tier, something RSNs across the board have resisted for years. Placing those channels on a tier could severely cut into their carriage revenue, as it is generally believed that about 30% of cable subscribers subscribe to tiered sports channels.   

Greenfield pointed to the prevailing wisdom that as DTC sports services launch, the need for a linear counterpart diminishes. Dish Network, which reached a retransmission consent deal for Sinclair’s TV stations in November, declined to reach a similar deal for its RSNs. The same could hold true for Charter.  

“Charter is not known for going to war on programming fees,” Greenfield wrote. “However, we expect Charter will demand RSN tiering vs. basic tier carriage, as minimum penetration requirements fall dramatically. If Sinclair balks at this demand, Charter will be forced to simply drop the RSNs altogether, as the content will be easily available to only the subs that want it via OTT.” 

According to the Sports Business Journal, talks between Sinclair and Charter have already started, but the two are still far from a deal. The paper said Charter is looking for “more flexibility” in how it offers the RSNs.   

That sounds like code for tiering, and if it is, it would be a problem for Sinclair. Because while everybody else is concentrating on the DTC service, Sinclair, like every other RSN, still relies on its linear TV deals to pay the bills. In an 8-K filing with the Securities and Exchange Commission, Sinclair mapped out three separate scenarios for the linear and DTC offerings. In every scenario, distribution revenue for the linear business remained relatively stable over the next five years -- $2.56 billion in 2022 dipping slightly to $2.39 billion in 2027. That 6.6% decline over five years comes as cable, telco TV and satellite TV businesses are experiencing a 6%-to-7% annual decline in subscribers. While traditional sports lovers are said to be stickier subscribers to the Pay TV bundle, it is unclear if the subscriber projections include Charter or not.    

Sports consultant Lee Berke, CEO of LHB Sports, Media & Entertainment, said it appears that Sinclair’s projections for their sports businesses are making some  interesting assumptions. 

“It assumes that there is no more churn, there is no more shrinkage in the pay TV universe,” Berke said. “It’s tough to see how that could be the case.”

In a research note earlier this month, MoffettNathanson senior analyst Craig Moffett estimated that the pay TV universe shrunk by about 5.2% in Q3, the latest figures available.  Cable operators shed 6.2% of their video customer base while satellite TV services providers like Dish Network and DirecTV lost 12% of their subscriber base. Even virtual MVPDs like YouTubeTV, Hulu Live TV and FuboTV are showing signs of a slowdown, adding under 1 million customers in the period, compared to 1.5 million in the prior year.

Sinclair has said in the past that its DTC service will be able to tap into a growing number of consumers who have no traditional pay TV relationship at all -- about 35 million homes at last count -- which could be a reason for the optimism. But it doesn’t explain the relative stability it seems to expect from the linear service, which relies on traditional TV distributors. According to the SEC filing, Sinclair doesn’t give estimates for linear subscribers, but it does project that EBITDA will drop from $396 million in 2022 to $150 million in 2027, so whatever customers remain will be less profitable. 

“It seems like a really solid piece of financial engineering,” Berke said. “But the marketplace is still the marketplace, and the trends are still happening in terms of churn and in terms of shrinkage of pay television and what people would pay.”

Also: Sinclair RSNs: Focus on the Dish Deal 

At the UBS Securities Global TMT conference on December 8, Rutledge didn’t specifically talk about tiering, but said that sports is one of the biggest components of high-priced cable bills.

“We’re trying to -- given the constraints in our own access to content -- create as many packages as we can for customers to meet their needs, recognizing that most people would love to have the fat bundle if it wasn’t so expensive,” Rutledge said at the December conference.   

Also: Ripley on RSNs: Believe It or Not 

According to the financial estimates in the SEC filing, if Diamond is projecting having about 309,000 subscribers to its DRC service in 2022, and generating about $75 million in revenue for the service, that works out to a charge of about $20 per month for the DTC service, below the $23 price point that some reports suggested in the past. The Sinclair revenue estimates also do not include possible revenue from gambling, which could be a huge profit center for the networks going forward. Ripley has said in the past that he expects the DTC service to be “lean-forward,” giving consumers a video game-like experience that allows them to play a game within a game.    

Also: Networks Get Ready for New York Mobile Sports Betting on Jan. 8

A lot of sports networks are looking to gambling as a huge potential cash cow on the advertising and sponsorship side. Several networks have forged marketing and other relationships with sportsbooks and casinos -- MSG Networks has marketing and sponsorship arrangements with Caesars Sportsbook and BetMGM; FanDuel and DraftKings has a long advertising relationship with Turner Sports and other channels have similar deals with other outlets. Sinclair has a deal with Bally Inc., where the casino giant paid $88 million over 10 years for naming rights for the channels. As Bally continues to roll out its BallyBet mobile app, currently in four states  it’s probably a good wager that it and the RSNs will have an even more symbiotic relationship. ■ 

The New York State Gaming Commission approved four licensed mobile sports wagering operators to begin taking mobile bets in the state beginning at 9 a.m. on January 8, and cable networks are gearing up for what they hope to be a big financial windfall.

Caesars Sportsbook, DraftKings, FanDuel, and Rush Street Interactive, which operates the BetRivers Sportsbook, got the green light from the Gaming Commission on Jan. 7, about a week prior to the January 15 start of the National Football Leauge playoffs and around a month before Super Bowl LVI on February 13, the biggest betting day of the year.

In a press release, Rush Interactive CEO Richard Schwartz said New York’s decision came just in time. 

“With the college football championship game on January 10th and NFL playoffs approaching, and the NBA and NHL seasons in full swing, in addition to countless other sports and betting options available for play, fans have endless entertainment at their fingertips at BetRivers,” Schwartz said in a press release.

Eyeing a $10 Billion Opportunity

New York State expects mobile sports gambling to represent a $10 billion revenue windfall annually. On Nov. 8, the state agreed to allow mobile sports wagering — about 18 other states, including neighboring New Jersey, have allowed it for months —- with the government taking 51% of gross revenue generated by the providers. 

With New York in the mix, however, other states that have been on the fence regarding mobile sports betting — including Connecticut, Delaware, Ohio, Louisiana, and Maryland, which have approved mobile gambling but haven’t gone live — will give them a needed push. 

“When it starts in New York, it becomes a national story,” said sports consultant Lee Berke, CEO of LHB Sports Media & Entertainment. “You’ve got four of the biggest sportsbooks starting on this, they’re creating New York-specific commercials, it’s going to become a subject of New York-based media outlets,” which should give any fence-sitters a needed push.

Another incentive for states: the enormous amount of money to be made. Some reports estimate that New York could reap about $1 billion in yearly profits from mobile sports betting. The state also is charging each mobile sports wagering operator a one-time $200 million licensing fee, and other providers are expected to join the fray. Initially nine providers were conditionally licensed by the state — Bally Corp.’s BallyNets; BetMGM, WynnBET; PointsBet New York; and Empire Resorts, doing business as Resorts World — were the others. The state Gaming Commission is still considering those five other applicants.   

“The remaining five conditionally licensed Mobile Sports Wagering Operators continue to work towards satisfying statutory and regulatory requirements necessary to launch and will be approved on a rolling basis when requirements are met,” the Gaming Commission said in a statement.

New Jersey has said gross revenue from online sports wagering was about $1 billion in September, most of that from mobile transactions. New York allowing mobile betting might cut into that handle — New York City gamblers were known to travel into the state just to make mobile bets. According to some reports, New York gamblers made about 25% to 30% of the sports bets in New Jersey. 

For television networks, the initial windfall is likely to be in the form of additional advertising — already Caesar’s Sportsbook, FanDuel, DraftKings and Rush Street, have been ramping up ads leading to Jan. 8. While sportsbooks have been advertising on sports channels ever since the U.S. Supreme Court allowed legal sports wagering in 2018, Berke said the introduction of the largest media market in the country to mobile wagering is a game-changer. 

“As it becomes more national in scope, the economics change in terms of being able to offer up a range of national content in a range of national media outlets,” Berke said. “Even six months ago, buying on the NFL, people were starting to do it, but it’s inefficient because half of the country can’t bet. When New York kicks in, suddenly, things change.” 

Berke said that viewers should expect similar programming on other sports channels, as “the line blurs between what is sports programming and what is sports betting programming.”

At YES Network, the home of New York Yankees baseball, Brooklyn Nets basketball, New York City Football Club soccer and New York Liberty basketball, the initial impact will mainly be on ad sales. But the RSN, the most-watched in the country, already has strong relationships with sportsbooks like FanDuel and DraftKings, so New York's entry into mobile sports betting “just makes YES all the more valuable to these entities,” said spokesman Eric Handler. 

FanDuel and DraftKings probably have the biggest relationships with television networks, having inked a deal with Turner Sports in October 2020 to integrate betting information into content from TNT, TBS and Bleacher Report. That pact also included the ability for Turner to collect referral fees if bettors placed wagers through their sites. 

MSG Moves Aggressively

Across the board, sports networks have long been anticipating this day, and many have spent the past few months forging partnerships with casinos and sports wagering outlets and creating programming geared toward gaming aficionados.  

One of the more aggressive networks on the programming and deal fronts has been New York area regional sports network MSG Networks, which has expanded its sports betting-focused programming. In October MSG Networks launched Odds with Ends hosted by former New York Giants players Mathias Kiwanuka and David Tyree on Sunday mornings during the NFL season; and The Bettor Half Hour hosted by Alex Monaco to complement its existing betting shows including The Betting Exchange with sports gaming experts Katie Mox, Jeff Johnson and former New York Jets safety Erik Coleman.

Also last year, MSG Networks struck marketing partnerships with FanDuel, Bet 365, BetMGM and Caesars Sportsbook.   

Caesars Sportsbook also plans to launch a new series on MSG Networks and its social media channels featuring actor and comedian JB Smoove — who also stars in the sportsbook’s national commercials. The show, One Course with JB Smoove, will integrate Caesars Sportsbook betting odds and content. In addition, the gaming giant and MSG Networks will launch a 20-part programming marathon to bring back the 2013 series Four Courses with JB Smoove, where the actor and comedian conversed with athletes and celebrities over dinner and which will now be updated with Caesars-themed content.

Caesar’s Sportsbook also will sponsor a special month-long programming block tied to former New York Ranger goalie Henrik Lundqvist. ■

MSG Networks said it hired David Schafer as senior VP, operations.

Schafer, most recently group senior VP, sports content and production, at Discovery, will succeed Jerry Passaro, MSGN’s  senior VP of networks and technical operations, who will be retiring at the end of December after a 40-year career,

Schafer will report to MSG Networks CEO Andrea Greenberg.

“David is one of the most accomplished and respected executives in the television industry and we are excited to welcome him to MSG Networks,” said Greenberg. “David’s technical expertise and vast experience in sports production and new product development will set the network up for continued success, as we continue to build on our legacy of broadcast innovation.”

Schafer directed the planning and operations for Discovery’s First Olympic games in 2018. He also did work for NBCUniveral’s on its Olympic coverage from 2000 to 2016 on a consulting basis.

Earlier is his career he was VP of operations for Madison Square Garden’s Fuse network.■

Madison Square Garden announced a multiyear marketing partnership with Caesars Sportsbook that includes a TV series featuring comedian JB Smoove, who also appears as Caesar in the gambling company’s commercials.

The deal makes Caesars the official sports betting partner of the New York Knicks, New York Rangers, Madison Square Garden Arena and MSG Networks. It includes in-arena hospitality for Caesars Rewards customers and digital media exposure.

MSG Networks and Caesars Sportsbook will air a 20-part marathon that bring back Four Courses with JB Smoove, which originally began in 2013 and features the Curb Your Enthusiasm star having conversations with athletes and celebrities.

The new series, One Course with JB Smoove, will include betting odds and other Caesars-themed content. 

“I am thrilled to be reunited with my friends at MSG Networks,” said Smoove, described as a Knicks fan. “I can see it now: Caesar in the Mecca! A match made in heaven!”  

Also: New York Mobile Sports Betting Could Help Networks Cash In 

Caesars Sportsbook will receive prominent exposure inside Madison Square Garden, including TV visible signage, in-arena LED messaging, GardenVision features and activations on the court and ice during Knicks and Rangers games. Digital boards outside of Madison Square Garden and in the new Moynihan Train Hall will also feature Caesars Sportsbook branding on display to the millions of people who walk by every day.  

“We’re thrilled to welcome Caesars Sportsbook, a renowned brand in the sports betting industry, to the MSG Sports and MSG Entertainment families,” said Ron Skotarczak, executive VP, marketing partnerships, MSG Entertainment, in a release. “Caesars Sportsbook is a key player in the growing world of sports betting — and we look forward to utilizing this partnership to further strengthen our brands’ connection with Caesars customers, while also providing the company with significant exposure across our unrivaled set of assets.” ■ 

Verizon, which recently reached a multi-year carriage deal with MSG Networks that means Fios subscribers can continue to watch NBA and NHL games on the regional sports network, plans to use its 5G  to bring more experiences to fans in the famed New York arena and at home. 

The plan is to use Verizon’s 5G Ultra Wideband wireless service to deliver enhanced statistics, augmented reality, virtual reality and, eventually the ability to place bets to mobile devices.

Also Read: MSG Networks Blacked Out on Comcast in N.J., Connecticut

“We’ll really be leaning in with them to innovate around next-generation fan experiences,” said Erin McPherson, Verizon’s head of content and partnerships.

Verizon sees 5G connectivity changing game day from the time a consumer buys a ticket. Through their phones, they’ll be able to arrange for parking, find their seat and make sure there’s a cold beer waiting. With predictive technology, the arena would know they’re going to want nachos and another beer at halftime and, when the game’s over, it can deliver the kid-sized jersey the fan’s daughter is expecting.

Also Read: Verizon Has 150K Fixed Wireless Customers

During the game, 5G can deliver the kind of advanced statistics fans are used to seeing during broadcasts when they’re at home. And at halftime the crowd can use Verizon’s bandwidth to compete in a virtual half-court shooting contest,. “We’re enabling everyone to do it at once and perhaps we’re offering prizes,” McPherson said. 

The fast speed of 5G Ultra Wideband also delivers that kind of low latency that makes it possible to do real-time in game betting. 

“The kinds of data-rich experiences that were hard to access in crowded venues will be easy and seamless,'' McPherson said.

Verizon also works with social media partners like Snapchat and McPherson said fans will be better able to share pictures of themselves rooting for their favorite teams using team filters. They also might be able to share highlight videos from the games, if those rights can be secured.

Some of those applications require multiple levels of rights and that is what makes MSG Networks a good partner, McPherson said. MSG Networks has rights not only to the arena but has ownership links to the Knicks and the Rangers. It also has ties to the leagues.

Also Read: MSG Marks 50th Anniversary of Knicks’ Championship

MSG Networks is thrilled to work with a company like Verizon that stresses innovation at every turn,” said Andrea Greenberg, president and CEO, MSG Networks. “We have a celebrated history of innovation as well, and are ideally suited to work with Verizon Fios to bring unique experiences to fans and viewers.”

McPherson said she didn’t have a firm timeframe for when fans could start to see the new experiences at the Garden, but said Verizon was committed to providing them in 2022.

Verizon will be creating some experiences that will be unique for its subscribers, but other features will be available to anyone in the building with internet access. “We recognize that the venues have an interest in ensuring that all the fans get some level of assets. Verizon customers will get extra,” she said.

Having fans hooked up to the Verizon network would also create excellent opportunities for advertising and commerce, but those will wait. “In these early days, it’s really about engaging fans and learning from doing,” she said, adding that “the possibilities are endless. Longer term, this is a whole new world for brands and advertisers.”

While Verizon and MSG Networks will initially be focusing applications in the arena, they will also look to serve spectators at home.

“The plan would be to really enable a fan to feel like they’re part of the action,” McPherson said. 

The living room or family room is a viable place for viewers to wear a VR headset and feel like they’re right there at courtside or next to the glass.

While experiencing the excitement of the venue, those viewers can have social interactions with other fans. “So every fan of the Rangers or the Knicks can feel like they are in the arena,” she said.

MSG Networks, embroiled in a blackout with Comcast, reached an agreement on a multi-year distribution agreement with Verizon Fios.

The deal means that some Comcast subscribers in New Jersey can switch to Fios if they want to avoid missing Knicks, Rangers, Devils and Islanders games on MSG and MSG Plus when the National Basketball Association and National Hockey League seasons start.

Also Read; AT&T SportsNet and Root Sports Removed From Dish Network

Financial terms were not disclosed.

“We are thrilled to have reached this multi-year agreement with Verizon Fios, who has been a long-time, valued partner. Live sports remains some of the most valuable programming on air, and all of our teams have passionate fan bases,” Adam Levine, executive VP of business affairs for MSG Networks, said. “We look forward to providing our lineup of sports programming to Fios subscribers for years to come.”

Last week, MSG warned viewers that Comcast subscribers in New Jersey and Connecticut could lose access to basketball and hockey matches if a new distribution deal couldn’t be reached. The agreement expired Thursday night and MSG and MSG Plus are currently blacked out in Comcast homes. 

Regional sports networks have been in the crosshairs of distributors concerned about cord-cutting by cost-conscious consumers. RSNs, which make large rights payments for games, demand high rights fees from distributors. Now some distributors, notably Dish Network, have largely stopped carrying them.

Comcast, which owns a string of NBC Sports-branded regional sports networks, cited high costs as a reason for MSG being blacked out.

“MSG Network was the first RSN when it launched in 1969. Back in those days, watching Knicks games was the main reason for getting cable. Now cable operators are saying the high cost of sports is a reason people are dropping pay TV.

"We don’t believe that our customers should have to pay the millions of dollars in fees that MSG is demanding for some of the most expensive sports content in the country with extremely low viewership in our markets,” Comcast said in a statement.

MSG Networks and Comcast failed to reach an agreement by Thursday night at midnight, and regional sports networks MSG and MSG Plus are no longer available to Comcast subscribers in New Jersey and Connecticut. 

“We don’t believe that our customers should have to pay the millions of dollars in fees that MSG is demanding for some of the most expensive sports content in the country with extremely low viewership in our markets,” Comcast said in a statement. “We have successfully negotiated thousands of agreements with programmers and reached agreements in almost every instance and are disappointed that MSG decided to pull their content rather than reach a fair agreement.” 

Regional sports networks have very high subscriber fees and are increasingly having difficulties maintaining carriage from both traditional distributors and new virtual multichannel video programming distributors.

Earlier on Thursday, Dish Network pulled the plug on AT&T’s regional sports networks in Denver, Pittsburgh and Seattle. At this point, Dish carries very few regional sports networks, having dropped Sinclair Broadcast Group’s Bally Sports Networks back in 2019, when they were owned by Fox.

Comcast owns a handful of RSNs, including SNY in the New York market, where it competes with MSG Networks.

Also Read: Ergen: Decision to Drop Fox RSNs One of Simple Math

Regional sports networks are trying to remain on distributors' basic tier, which means all subscribers pay for the channels, whether or not they are sports fans or game watchers. The distributors want a situation where people who want to watch games pay for the privilege.

In a statement, MSG Networks noted that fans were looking forward to the start of the NBA and NHL seasons.

“Comcast dropped MSG Networks to try to force us to accept terms they’d never agree to for their own regional sports networks, including SNY in New York,” MSG said. “They rejected proposals that are consistent with their current deal and deals we have with other major providers, as well as our offer to keep our programming on air under existing terms so we could continue to work on a longer-term agreement. And even though they’ve taken away hundreds of live Knicks, Devils, Rangers and Islanders games, they continue to charge Xfinity customers the same monthly rate — in addition to a regional sports fee that they increased 22% in January to more than $10 per month. Comcast’s refusal to negotiate is deeply disappointing.”

MSG earlier this week began running ads warning viewers they could lose the channel and New York Knicks, New York Rangers, New York Islanders and New Jersey Devils games once the National Basketball Association and National Hockey League seasons start.

MSG Networks is warning that Comcast Xfinity cable subscribers could miss the beginning of the National Basketball Association and National Hockey League seasons when their distribution agreement expires Thursday at midnight.

Comcast carries MSG Networks in New Jersey and Connecticut. The sports network carries New York Knicks, New York Rangers, New York Islanders and New Jersey Devils games. It also has games of the New York Red Bulls of Major League Soccer.

Comcast owns NBCUniversal and its own regional sports networks, including SNY in the New York region.

Also Read: NBCU Warns YouTube TV Subscribers Could Be Blacked Out

Regional sports networks are among the most expensive channels in terms of the fees they command from distributors. Dish Network has largely stopped carrying RSNs and some of the virtual MVPDs have not reached deals to carry Sinclair Broadcast Group's collection of Bally Sports networks.

“We’ve been working to reach an agreement that is fair, reasonable and consistent with other major providers, while Comcast is demanding terms they’d never accept for their own regional sports networks, including SNY in New York,” MSG Networks said in a statement.

“Xfinity customers do not deserve to lose MSG Networks’ coverage of their local sports teams, which includes hundreds of live games for the upcoming NBA and NHL seasons. MSG Networks is ready to continue working in good faith, however, we encourage Comcast Xfinity subscribers who want to watch the Knicks, Rangers, Islanders, Devils and Red Bulls to visit www.keepmsg.com for more information, including alternative providers in their area,” MSG said. 

Comcast said it has a record of reaching deals with programmers (though its New York area customers were without YES Network for more than a year in a dispute that began in 2015).

“Comcast’s agreements with programmers expire from time to time. We have successfully negotiated thousands of agreements with programmers and reached agreements in almost every instance," Comcast said. "We would like to reach a fair deal with MSG that makes sense for our customers before the current one expires, allowing us to continue offering their networks on our channel lineup.”

MSG Networks said it hired Talaya Wilkins as VP of content strategy.

The former ESPN producer will focus on developing programming targeted at the growing sports betting audience and lead MSG Networks' growing content team.

With legalized sports betting becoming available in more states, sports networks are looking for ways to provide interesting and useful programming to bettors. That programming will also attract advertisers in the betting business, who are spending more ad dollars to attract customers.

Wilkins will report to Kevin Marotta, MSG Networks’ senior VP, marketing and content strategy. 

Also Read: MSG Networks, TVG Gallop With Live Horse Racing

“We are thrilled to welcome Talaya, who comes to MSG Networks after creating and overseeing so many critically acclaimed programs and specials at ESPN,” said Marotta. “Talaya is charged with leading our sports betting initiatives, while also bringing a fresh approach to developing content for New York area sports fans of all ages and interests.”

Wilkins spent 14 years at ESPN, most recently overseeing studio shows for ESPN Plus. She received four Emmy Nominations and played division 1 basketball for the Siena College Saints.

MSG Networks said it made a multi-year deal with FanDuel Group’s TVG network to bring live daily horse races to viewers in the New York area.

The move comes as the television business embraces legalized gambling.

Starting Wednesday, TVG’s Trackside Live show will be simulcast on MSG Plus Wednesdays through Sundays from noon to 7 p.m. ET, featuring live races from tracks around the world. 

Trackside Live also features interviews and expert analysis from TVG’s on-air talent. 

FanDuel’s sports betting show More Ways to Win, hosted by Lisa Kerney, will also begin to air on MSG Networks on weekends during the NFL season.

Also Read: Sinclair’s Streaming RSNs and Warner’s CNN Plus May Be Pay TV’s Biggest Disruptors

“It’s great to partner with TVG and FanDuel to bring so many great, live horse races to fans on MSG Networks,” said Jeff Filippi, senior VP, programming and production, executive producer, MSG Networks. “Fans will see a great variety of races from more than 150 tracks around the world.”

TVG processes more than $2 billion in horse racing wagers annually from residents of 33 U.S. states. 

“We’re excited to be partnering with the MSG Networks to bring premier live racing coverage to its family of networks and its millions of viewers in the New York area,” said Amy Howe, newly appointed interim CEO of FanDuel Group. “This new agreement is part of FanDuel Group’s continuing commitment to invest in our core horse racing television programming and to expand the audience for our racetrack and horsemen partners.”

The agreement was announced a month after New York Racing Association officials said that MSG Networks would no longer broadcast the association’s simulcast programs. according to the Daily Racing Form. MSG had worked with NYRA for 30 years.

Almost six years after splitting the company to unlock value, Madison Square Garden Entertainment said it has agreed to combine with MSG Networks in a tax-free exchange of shares.

The recombination is expected to bolster MSG Entertainment, which includes Madison Square Garden arena, Radio City Music Hall and other venues that have been hit hard as the pandemic has shut down the concert business. The entertainment unit is building a state-of-the-art facility in Las Vegas -- MSG Sphere at the Venetian -- which is scheduled to open in 2023. The company also has said it plans to build a second MSG Sphere in London, pending necessary approvals.

The company said the combination of the entities’ media, digital and venue assets should help MSG Entertainment capture a greater share of the burgeoning sports gaming business. Some analysts have estimated sports gaming could become a $12 billion business by 2025.   MSG Networks controls two regional sports networks -- MSG Network and MSG Plus.

“MSG Entertainment is actively executing a plan designed to grow the Company beyond its established collection of assets into one that is pioneering the next generation of entertainment,” MSG Entertainment CEO Andrew Lustgarten said in a press release. “We have always believed in the value of live sports and look forward to welcoming MSG Networks back into the fold as part of a transaction that we are confident would enhance our financial flexibility and set the stage for continued growth and value creation.”

The deal is expected to close in the third quarter. Moelis & Company LLC and The Raine Group are serving as independent financial advisors and Wachtell, Lipton, Rosen & Katz is serving as independent legal counsel to the Special Committee of the Board of Directors of MSG Entertainment. LionTree Advisors LLC and Morgan Stanley & Co. LLC are serving as independent financial advisors and Davis Polk & Wardwell LLP is serving as independent legal counsel to the Special Committee of the Board of Directors of MSG Networks. Debevoise & Plimpton LLP is serving as legal counsel to the Dolan family.

The two companies were originally part of Cablevision Systems Corp. which spun off MSG -- including its professional sports teams and regional sports networks unit -- in 2010. In 2015, the assets were split into The Madison Square Garden Co., which included the teams and concert venues, and MSG Networks, housing the RSNs. In 2020 The Madison Square Garden Co. split again into MSG Entertainment, housing its concert venues, and MSG Sports, which included its professional sports teams. Cablevision was sold in 2016. MSG Sports continues to be a separate entity.

According to the deal, MSG Networks shareholders will receive 0.172 shares of MSG Entertainment Class A or Class B stock for each share of MSG Networks they own. 

MSG Networks said it will launch a free-to-play app in March that will offer sports fans the chance to win cash prizes during Knicks, Rangers, Islanders, Devils and Sabres Games.

The app--MSG Networks Pick ‘Em--was developed with Boom Sports and is expected to be available on iOS and Android devices.

Sports programmers and regional sports networks have been launching games in order to attract younger viewers to game broadcasts and increase engagement with fans.

Also Read: Sinclair, Bally’s Rebrand Regional Sports Networks

“MSG Networks is thrilled to partner with Boom Sports on our new free-to-play app. We’ve been offering trivia and pick’em games on our MSG GO streaming app since 2018 and have seen firsthand how interactive games can help increase viewer engagement – including how long and how often they tune in,” said Peter Tulloch, senior VP, digital products and distribution, MSG Networks. “MSG Networks Pick ‘Em will further deepen our connection with viewers, providing sports fans with a fun and, potentially, rewarding way to enjoy MSG Networks’ live coverage of their favorite sports teams, while providing MSG Networks with new revenue opportunities.”

MSG Networks’ Pick ‘Em games will have a series of predictive questions rewarding fans with cash prizes for every basketball game, and for hockey games, the jackpot will be progressive. Official rules, scoring, prize and other information for MSG Networks Pick ‘Em will be available when the app launches

“We are excited to be working with MSG Networks to create an app that will enrich the viewing experience, and also offer unique value in the form of user insights and a strategic digital asset,” said Greg Viverito, VP of partnerships, Boom Sports. “We’re also a New York City-based company so we embraced the opportunity to create a product that adds to the fun of being a fan of New York sports teams.”

MSG Networks is launching original programming as the National Hockey League gets set to drop the puck and start its Stanley Cup Qualifiers games on August.1.

On July 27, the network will debut Around the NHL, presented by Chase, a new weekday program hosted by Michelle Gingras and Anson Carter.

The show will highlight league news and action and feature guest interviews.

The network is also launching MSG Hockey IQ, an NHL themed trivia show on July 27.

MSG Hockey IQ features broadcasters Sam Rosen, Joe Micheletti, John Giannone, Steve Valiquette, Brendan Burke, Butch Goring and Shannon Hogan getting ready for the season and answering trivia questions. The show is presented by Cadillac.

On Tuesday, MSG Networks will air a Rangers Return to Play Preview, followed by an Islanders Return to Play Preview on Wednesday.

While ESPN marks the Chicago Bulls’ Last Dance, MSG Networks plans to celebrate the 50th anniversary of the New York Knicks’ first championship.

The network is re-airing game film of Game 5 (in a one-hour special) and Game 7 of the NBA finals against the Los Angeles Lakers, and is featuring 30-minute biographical features on team members including Dick Barnett, "Dollar" Bill Bradley, Dave DeBusschere, Walt “Clyde” Frazier, captain Willis Reed and head coach Red Holzman. The MSG Vault special about Game 5, in which Reed was injured, airs tonight (May 7) at 6:30 p.m. EST and Friday at 11 a.m. The Game 7 replay airs Friday at 5:30 and 9 p.m.

On Thursday, the network will feature an interview with Barnett on MSG 150 at Home at 5 p.m.

That will be followed at 5:30 p.m. by To the Rafters: 1970 Retirement Ceremonies, a new one-hour program featuring each jersey retirement ceremony from the championship team. Barnett’s No. 12, Bradley’s 24, DeBusschere’s 22, Frazier’s 10 and Reed’s 19 hang from the ceiling at the Garden.

On May 8, a half century after Reed came back from the Game 5 injury to inspire the Knicks to beat the Los Angeles Lakers in Game 7 of the finals, MSG is set to air MSG 150 at Home: Knicks 50th Anniversary Special, a round table discussion with forward and former U.S. Senator Bill Bradley; Frazier, now a broadcaster, and Reed, the team’s center, hosted by Mike Breen at 5 p.m.

The 50th anniversary features will be re-run in prime time on Friday.

While ESPN marks the Chicago Bulls’ Last Dance, MSG Networks plans to celebrate the 50th anniversary of the New York Knicks’ first championship.

The network is re-airing game film of Game 5 (in a one-hour special) and Game 7 of the NBA finals against the Los Angeles Lakers, and is featuring 30-minute biographical features on team members including Dick Barnett, "Dollar" Bill Bradley, Dave DeBusschere, Walt “Clyde” Frazier, captain Willis Reed and head coach Red Holzman. The MSG Vault special about Game 5, in which Reed was injured, aired May 7 at 6:30 p.m. EST and Friday at 11 a.m. The Game 7 replay airs Friday at 5:30 and 9 p.m.

On Thursday, the network featured an interview with Barnett on MSG 150 at Home at 5 p.m.

That was followed at 5:30 p.m. by To the Rafters: 1970 Retirement Ceremonies, a new one-hour program featuring each jersey retirement ceremony from the championship team. Barnett’s No. 12, Bradley’s 24, DeBusschere’s 22, Frazier’s 10 and Reed’s 19 hang from the ceiling at the Garden.

On May 8, a half century after Reed came back from the Game 5 injury to inspire the Knicks to beat the Los Angeles Lakers in Game 7 of the finals, MSG is set to air MSG 150 at Home: Knicks 50th Anniversary Special, a round table discussion with forward and former U.S. Senator Bill Bradley; Frazier, now a broadcaster, and Reed, the team’s center, hosted by Mike Breen at 5 p.m.

The 50th anniversary features will be re-run in prime time on Friday.

Madison Square Garden executive chairman and CEO James Dolan has tested positive for the COVID-19 virus, but has been in self-isolation and is showing little to no symptoms. 

Dolan, the former CEO of Cablevision Systems, which was sold in 2016 to Altice N.V., also is executive chairman of regional sports networks MSG Networks. Madison Square Garden Co. includes the Madison Square Garden arena, Radio City Music Hall and other venues as well as professional sports teams like the NBA New York Knicks and the NHL New York Rangers. MSG is currently in the process of splitting into two separate publicly traded entities, one including the entertainment venues and the other the sports teams. 

Related: Lustgarten Named CEO of Madison Square Garden Spinoff 

In a tweet Saturday (March 28), the Knicks said Dolan has been in self-isolation, showed little to no symptoms and “continues to oversee business operations.”

[embed]https://twitter.com/NY_KnicksPR/status/1244083380695764996[/embed]

About a week after its stock dropped precipitously after revealing it lost about 6.5% of its subscriber base in Q2 -- nearly double the rate of its peers -- MSG Networks said it will increase its stock buyback by about $300 million, a move some analysts say reiterates the company’s confidence in its stock.

The buyback announcement comes days after MSG Networks shares fell as much as 14% on Aug. 21 to $14.46 each after the company said its subscriber base decreased by 6.5% in fiscal Q4, resulting in a $3.3 million decline in affiliate fees in the period. The stock has continued its slide at a slower pace in subsequent trading --it closed at $14.15 on Aug. 29 -- but regained most of those losses in early trading Friday.

In a statement after the stock market close on Aug. 29, MSG said that the company had about $136 million remaining in its repurchase program, and the increase pushed the total available authorization to $436 million. MSG Networks added that it planned a “modified Dutch auction” to purchase up to $250 million of its outstanding Class A common stock at a price not less than $15 per share and not more than $17.50 per share on Aug. 30. That news sent the shares skyward on Friday, with the stock priced at $16.27 each (up $1.95 or 13.6%) in early trading.

In a research note, Evercore ISI Group media analyst David Joyce wrote that the Dutch auction “is a clear sign of Board and management confidence, amidst a subscriber-challenged environment.”

The size and timing of stock purchases will be determined based on market conditions and other factors, the company said. The repurchase program is expected to be executed over time and will include shares purchased in the Dutch auction.

“MSG Networks has a strong balance sheet and generates robust free cash flow, which we will use to execute a stock repurchase program that provides us with flexibility to take advantage of market opportunities,” MSG Networks CEO Andrea Greenberg said in a press release. “We understand the media landscape is evolving, but remain confident in the long-term prospects for our business and our continued ability to create value for shareholders.”

MSG Networks stock fell hard Wednesday after the regional sports network said subscribers dropped 6.5% in the fiscal fourth quarter.

MSG Networks, which includes New York area RSNs MSG and MSG +, said its subscriber base fell more than 6.5% in the period, resulting in a $3.3 million decline in affiliate fee revenue. Overall revenue was down 2% to $168.4 million in the quarter. MSG said in a press release that the affiliate fee decline was also due partly to the absence of a favorable $1.2 million affiliate adjustment recorded in the prior year.

RELATED: Cord Cutting Will Decelerate in Q3, Analyst Predicts

MSG shares dropped as much as 14.2% ($2.39 each) to $14.46 per share in early trading Wednesday. The stock was priced at $14.72 each (down 12.7%, or $2.14 each) by 11:42 a.m. Aug. 21.

RELATED: Cord Cutting Starts to Pinch Affiliate Fees

The subscriber decline seemed to validate concerns that regional sports networks are losing favor with distributors as their monthly affiliate fee prices rise and more and more over-the-top service providers offer packages light on sports programming. Also during the day, Sinclair Broadcast Group, which earlier this year agreed to pay nearly $10 billion for 21 former Fox Sports RSNs, saw its stock fall as much as 5.6% ($2.47 each) to $42 per share in early trading Wednesday. Sinclair shares were priced at $43.22 each (down 2.8%) as of 11:47 a.m. on Aug. 21.

MSG Networks has been speculated in the past as a possible future target for Sinclair, in that it would fill out a hole the broadcaster has in the New York market. 

Cord-cutting was on a torrid pace in the third quarter, reaching about 5.5% in the period according to some analysts.

MSG Networks problems also are exacerbated by the performance of its teams — last season, the NBA New York Knicks finished last in the league’s Eastern Conference and the NHL New York Rangers finished seventh out of eight teams in the Metropolitan Division. MSG airs games from the NHL New York Islanders (finished second in the Metropolitan Division), New Jersey Devils (finished last in the Metropolitan Division) and the Buffalo Sabres (finished sixth in the Atlantic Division) and other content from the NFL New York Giants (last in the NFC East) and Buffalo Bills (third in the AFC East).

In a note to clients Wednesday, Evercore ISI Group media analyst David Joyce wrote that the subscriber loss was nearly double his estimate of a 3.7% decline, and dramatically lower than the 3.9% decline MSGN reported in fiscal Q3. Joyce noted that RSN losses have been abnormally high in the most recent period, mainly due to the expiration of promotional offers, meaning that he does not expect the heavy declines to continue. But he added that the “the underperformance experienced by MSGN vs. the broader industry is concerning.”

As a result he lowered his rating on the stock from "in-line" to "underperform" and dropped his 12-month price target on the shares from $22 to $18.

Despite the losses Joyce said MSGN continues to be a strong generator of free cash flow -- at $63 million in the period that segment was up by 45%, but still about $6 million below his estimates on the affiliate revenue decline and increased expenses.

“This cash flow should help de-risk the balance sheet and counter some of the business model risk,” Joyce wrote. “We also think it is possible that the company could allocate some of its [free cash flow] to share buybacks to signal comfort in the business model.”

On a conference call with analysts to discuss results, MSG Networks CEO Andrea Greenberg said the declines were primarily related to two unnamed distributors, one who has said publicly that it is being impacted by a roll-off of promotional customers. Both said they experienced overall subscriber growth in the prior year period, which resulted in difficult year-over-year comparisons.

“Subscriber declines are aspects of the business we continue to monitor closely, and we continue to pursue new distribution outlets for our networks,” Greenberg said.

MSGN EVP, Business Affairs Adam Levine said on the call that the company is focused on all opportunities for incremental distribution with existing and new distributors, and expects its networks to be available on a new pay TV broadband offering from an existing partner scheduled for later this year or early next year, and is discussing new potential content offerings with new and existing partners.

“There’s no shortage of interest in sports content, especially live professional sports content,” Levine said. “As exclusive rights holders for live games for seven local professional teams, we’re going to continue to explore all opportunities that properly value our content and make sense for our business.”

MSGN’s 10-year carriage deal with Altice USA’s Optimum unit expires in about three months. On the call, Levine and Greenberg said they are confident a favorable deal can be reached.

“We have multifaceted relationships with virtually all of our distributors, and we expect that to continue with Altice,” Greenberg said. 

MSG Networks in June will air a monthly Thursday night boxing series as part of an agreement between the company, boxing promoter Golden Boy and sports streaming service DAZN.

The series launches June 13 with the main event featuring a women’s light flyweight title bout between champion Seniesa Estrada and challenger Gretchen Abaniel. The monthly shows will feature two hours of live boxing and a one-hour studio show, Ring Report, said the network.

“We are excited to offer this live boxing series from Golden Boy and DAZN to the passionate fight fans in New York,” said Jeff Filippi, Senior Vice President of Programming and Production, and Executive Producer, MSG Networks in a statement. 

MSG Networks and Verizon Fios said Fios customers who get MSGN networks as part of their pay-TV package can now use the MSG GO live streaming and video-on-demand platform to watch live events and other programming. MSGN launched the app in late 2014, with Optimum as its first affiliate. Other affiliates are XfinityTV, RCN and Service Electric Broadband Cable. New York Knicks, New York Rangers, New Jersey Devils, New York Islanders, Buffalo Sabres, New York Liberty and New York Red Bulls games are shown on MSG networks.

RELATED: MSG Gets Streaming Rights to NHL Games

“We are pleased to expand our partnership with Verizon to provide Fios subscribers with access to live games of their favorite MSG Networks teams and our other award-winning content wherever they are,” Adam Levine, executive vice president, business affairs and distribution, MSG Networks, said in a release. “With NHL games now part of MSG GO, Fios subscribers receiving our networks will be able to enjoy an exciting end of the regular season, as well as our compelling post-season coverage.”

“With the addition of MSG GO, we will soon carry live streaming of each New York-area regional sports network giving our customers the ability to watch every local team both at home and on-the-go,” Ben Grad, executive director of content strategy and acquisition for Verizon, added in the release. “Partnerships like this fit right into Verizon’s strategy of giving our customers more creative and flexible ways to view all their favorite content including crucial live sports programming.”

RELATED: MSG Networks Stock Soars on Sale Speculation

Subscribers with a supported smartphone or tablet can download the free “MSG GO” app by visiting the App Store or the Google Play store. On computers, customers may visit MSGGo.com.

MSG Networks stock rose more than 8% Tuesday after a report in the New York Post said the sports network's chief, James Dolan, was "sounding out" possible buyers, a list that could include Verizon Communications.

MSG Networks, which includes regional sports channels MSG Networks and MSG Plus, carries games from the NBA's New York Knicks and NHL’s New York Rangers, New Jersey Devils and New York Islanders. In a report Tuesday, the Post, citing unnamed sources, said Dolan was “gauging interest” in a possible sale with some of his friends, including Guggenheim Partners executive chairman Alan Schwartz, a noted media dealmaker who also sits on the board of Madison Square Garden Co., the arena where the Knicks and Rangers play. Dolan, executive chairman of MSG Networks, also serves as executive chairman of Madison Square Garden Co.

The Post said there was no guarantee a deal would happen, but named Verizon Communications as a possible suitor.

Verizon could be on the hunt for content assets as its chief telecom rival, AT&T, moves closer to cementing its $108.7 billion purchase of Time Warner Inc. The Post said AT&T also is looking for RSN properties to add to the five it already owns, but may want to hold off until after its Time Warner deal closes.

The news sent MSG Networks stock skyward. Shares traded as high as $24.85 each (up 8.3% or $1.90 each) in earlier trading Tuesday and closed at $24.40 per share, up 6.3% or $1.45 each.

A sale of the networks wouldn’t be out of the question. Many analysts speculated that the MSG channels could go up for sale after the company was split in 2015. In that deal, MSG was split into MSG Networks and the Madison Square Garden Co., which houses the sports teams, the Madison Square Garden arena, and other venues like Radio City Music Hall, The Forum and The Chicago Theater.

MSG Networks said it has obtained, from the National Hockey League, rights to stream NHL games live on the MSG GO app. Thus far, Altice-owned Optimum and Comcast's Xfinity have agreements to authenticate (enable views of) programming on the app and on MSGGo.com for its customers. Charter-owned Spectrum and Verizon Fios are among other big pay-TV providers in MSG Networks markets. MSG outlets air the NHL's New York Rangers and Islanders, New Jersey Devils and Buffalo Sabres contests. The app launched in 2015 with rights to stream New York Knicks' National Basketball Association games.

“As the outlet for more live local NHL games than any other RSN in the country, we are pleased to partner with the NHL and our teams to provide hockey fans with additional ways to view our games,” Andrea Greenberg, CEO of MSG Networks, said in a release. “With the addition of the NHL, MSG GO will certainly be a premiere mobile destination for hockey fans in the region.”

Added David Proper, executive vice president, media and international strategy, NHL in the release: “With this agreement, MSG Networks once again demonstrates what it means to be an excellent partner for our clubs. Together we share a vision for serving our fans, who are extremely passionate about their teams. This agreement for live streaming on MSG GO is all about fulfilling demand and providing our fans with the type of access they want in the way that is most convenient to them.”

The Madison Square Garden Co. is going analytical with Cablevision, which could lead to its two regional sports networks becoming household addressable within the MSO’s footprint.

The companies are teaming on initiatives that will supply MSG with insights stemming from Cablevision’s set-top box, census-level audience data, which the operator bowed early in 2013.

Under the deal, financial terms of which were not disclosed, MSG is planning a pilot with Cablevision to test making its MSG and MSG+ RSNs household addressable for advertisers within its New York DMA footprint. Under this program, the RSNs would use this capability, in conjunction with the data analytics, to enable them to selectively segment their audience and serve them with different ads for effective targeted marketing, sponsorship and sales campaigns. A time frame for the pilot's launch has not yet been set, according to MSG.

Additionally, MSG will use the analytics to optimize television viewing, as well as ad placement and pricing. The information will also inform marketing campaigns to drive ticket sales, and engage advertisers and sponsorships as means to grow its customer base.

The announcement comes as MSG, previously owned by Cablevision, has approved a plan to explore a spin-off that would separate its live entertainment venues like Madison Square Garden and The Forum in Los Angeles, from its pro sports teams and its MSG Networks.

The MSO, which has long been in the vanguard of addressable advertising, said it introduced census-level audience data early last year to support audience discovery, media planning and campaign optimization for programmers and other advertisers. Census-level audience data, when combined with addressable TV advertising, enables marketers to precisely target audiences and is based on Cablevision's aggregated, de-identified data from millions of households in the New York market. The DMA’s preeminent distributor says it utilizes multiple administrative, technical and physical security measures to ensure privacy compliance.

“Improved measurement and analytics can be used companywide to help us achieve our goals – whether it’s understanding our fans and viewers or recruiting new customers,” said Tad Smith, president and CEO of MSG. “Having the right information is a critical step to our helping our sales partners ensure they get the right message to the right audience. We believe in the importance of using data analytics to drive growth and will continue to explore additional opportunities to expand upon this strategy.”

With their six-game triumph over the Montreal Canadiens, the New York Rangers are returning to the Stanley Cup Final for the first time in 20 years and MSG Networks will be all over the  action.

MSG Network will expand its pregame coverage of the Broadway Blueshirts with the addition of Rangers Stanley Cup Countdown presented by Chase. The puck will drop on the hour-long show, hosted by Bill Pidto and Ron Dugua from Rangerstown Hockey House presented by Chase, at 6:30 p.m. on game nights and will feature special guests and Rangers alumni throughout the Final series.

Rangers Stanley Cup Gamenight hosted by Al Trautwig and featuring Joe Micheletti and Sam Rosen, will follow at 7:30 p.m. along with Mercedes-Benz Rangers Stanley Cup Postgame, a 60-90 minute recap and analysis immediately following the game. 

On all non-game days, MSG Network will telecast the new one-hour program Rangers Stanley Cup Insider at 9 p.m. This live show, hosted by Pidto and featuring MSG’s popular play-by-play team of Micheletti and Rosen, will provide Rangers fans with up-to-the-minute news on the teams, players, and coaches, as well as live interviews with former players, hockey aficionados, celebrities and more. (Check out a schedule below)

The Rangers will battle either the 2012 titlist Los Angeles Kings or the 2013 defending champion Chicago Blackhawks for Lord Stanley's Cup.  LA leads Chicago three games to two, with the sixth contest scheduled for May 30 at Staples Center. Should a decisive seventh game be necessary, the Blackhawks would hold home ice advantage in the United Center.

 MSG Network and MSG + will also screen marathons of series featuring Rangers players and coaches, alongside player interviews and other content.

On Tuesday, June 3 Rangers fans can relive every minute of the 1994 Stanley Cup Final – which ended the club’s 54-year NHL championship drought -- as MSG Network broadcasts all seven games beginning at 6 a.m., leading into the premiere of Rangers Stanley Cup Insider at 9 p.m.

Preceding the first Final game on Wednesday, June 4, MSG will tee up Beginnings, its original series that profiles the roots of Garden stars and legends.  Starting at 1:30 p.m. the Beginnings stunts presents behind-the-scenes looks at Adam Graves, Brian Boyle, Marc Staal, Brad Richards, Derek Dorsett, John Moore, Ryan McDonagh, Derick Brassard, and Dan Girardi, and will lead into that evening’s pregame coverage.

The following day the regional sports network will dedicate two hours to goaltender Henrik Lundqvist, starting at 5 p.m., with three episodes of The Game 365 and MSG Countdown:HenrikLundqvist’s Greatest Saves.

The full programming schedule, along with New York Rangers news and information, is available at http://www.msg.com/.

GAME DAY PROGRAMMING

Rangers Stanley Cup Countdown presented by Chase: 6:30 p.m. – 7:30 p.m.

Live one-hour pregame show hosted by Bill Pidto and Ron Duguay from Rangerstown Hockey House (free indoor fan festival featuring interactive games, photo opportunities with Rangers alumni, and more), featuring special guests and Rangers alumni

Rangers Stanley Cup Gamenight: 7:30 p.m. – 8:00 p.m.

Live 30-minute pregame show hosted by Al Trautwig and featuring Joe Micheletti and Sam Rosen

Mercedes-Benz Rangers Stanley Cup Postgame: Immediately following each game

Live 60-90 minute show recapping the game, hosted by Al Trautwig, with Joe Micheletti, Sam Rosen, Dave Maloney, John Giannone, and Ron Duguay

OFF DAY PROGRAMMING INCLUDES:

Rangers Stanley Cup Insider: 9:00 p.m. – 10:00 p.m.

Live one-hour show providing Rangers fans with the latest news during the 2014 Stanley Cup Final, hosted by Bill Pidto with Joe Micheletti and Sam Rosen and featuring special guests and Rangers alumni