Just as Major League Baseball prepares for its Opening Day, a carriage dispute between YES Network and Comcast could prevent New York-area fans from watching their teams.
In a statement released on Monday, New York Governor Kathy Hochul urged the network and cable provider to reach an agreement, revealing that an extension previously reached by the two sides was set to expire on Tuesday. YES Network is the television home of the New York Yankees and Brooklyn Nets.
“Opening Day is coming up this Thursday, but many New York sports fans are about to be shut out,” Hochul’s statement read. “The extension of an agreement between Comcast Cable and the YES Network is set to expire on Tuesday, and Yankees and Nets fans will be hardest hit. Fans should never be caught in the crossfire of a corporate dispute.
“Both broadcasting parties need to stay at the table and resolve this dispute without impacting fans. As your Governor, I am prepared to take further action if this is not resolved, as I’ve done in the past, by directing New York’s Department of Public Service to call public hearings on how consumers are being affected, securing refunds for disruptions and whatever else it takes to resolve broadcasting disruptions for all New Yorkers.”
In recent years, Comcast has employed a strategy of moving regional sports networks into higher, more expensive tiers of its Xfinity cable systems. This accomplishes two things: 1) it allows Comcast to pay less in carriage fees as the channel moves to a tier with fewer subscribers and 2) it allows fans to self-select, meaning sports fans that need YES Network will pay extra and move to the higher tier, while subscribers who do not watch YES Network can remain on a lower tier at a more affordable price.
Of course, that is a direct attack on the very economic model that has kept regional sports networks, and in turn, professional sports teams, flush with media dollars for decades. The beauty of the regional sports network was, no matter if any individual actually watches the channel, they were paying for it as a cable or satellite subscriber. But as consumers continue to cut the cord, that model has become untenable.
For New York sports fans that rely on YES Network to watch games, there’s good news. Fans can purchase a direct-to-consumer streaming plan via the Gotham Sports platform for $24.99 per month and watch YES Network without a cable subscription.
There’s also hope that a deal gets done before Opening Day. Generally, when two sides agree to an extension, as Hochul mentioned had happened in her statement, they are willing to reach a deal. Both sides know the realities of the current regional sports network business. But YES Network, as one of the largest regional sports networks housing one of the most popular teams in the country, is uniquely situated compared to its peers.
Luckily, Hochul’s public shaming has been effective in this very situation in the past. Earlier this year, the New York governor urged Optimum and MSG Networks to reach a carriage agreement as New York Knicks fans spent nearly two months in the dark before striking a deal.
Perhaps pressure from New York’s executive branch will lead to a quicker resolution for YES Network and Comcast.