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New York Knicks fans are caught in the middle of the -- -- justice Nick's point guard Jeremy -- take sports world by storm fans who have Time Warner Cable.
Can't -- Time Warner has not carried MSG network since the first of the year due to a -- over renewal fees.
Will -- popularity for -- resolution.
Joining us now on -- Fox Business exclusive is talk -- -- -- the media equity research managing director at Collins Stewart.
Who pattern research report which I'm holding my hand before -- started -- titled.
In game of chicken with MSG.
Time Warner Cable has home court advantage this was January 5 do you still feel this way.
Now that -- who started in early February take in this world by storm is now getting a lot of knicks fans riled up.
Without question -- knicks have more leveraged now than they did a month ago.
But we still think that Time Warner Cable has it overwhelmed and negotiating leverage over -- -- The reason is because image she needs Time Warner Cable more than -- of reverse of that.
OK but if you're looking at the numbers you see.
That we have unbelievable ratings since Germany -- started I think its first game was February 4 he came off the bench then he actually started.
February 6 it's a five game winning streak she can be credited with all of this tonight it's the raptors but people what Time Warner Cable in Manhattan cannot watch this.
Yet the ratings are going through the roof and will they not start either trying to switched up bios are rcn or something else or they'll start putting pressure on Time Warner -- Willem there are two things -- remember first of all that about 40% of the games you can watch elsewhere.
Either on ABC -- on TNT -- in the NFL channel.
Secondly only about 25%.
Of the New York base of -- -- subscribers can get files.
So it does seem to be very difficult a potentially get -- -- as a substitute in the beginning you have elsewhere ago.
OK let me just say this much that sources are telling me that there have been no meaningful discussions between Time Warner Cable and MSG networks.
Since about December 16 now here's the -- statement the official statement.
Todd Porter cable recently spent a reported five billion for the rights to the LA lakers.
But they refused to value our content in New York that's from Michael -- president of -- media so.
His statement is pretty much an LA vs New York thing but let me just say the Time Warner Cable statement.
Is charging them it's cheaper charging too much to pick up the network once again saying unfortunately MSG is still demanding up 53%.
Our hope is that they will go back to their pre December demand for six point 5% increase they declined our request for an extension of December -- prevented our customers.
For missing games on MSG.
By the way.
My sources at a -- year telling me that you know what that's a gross misrepresentation.
That it's not 53% at somewhere between six and bought 53% what are you hearing at its foot.
You know even if if it is say 50%.
Our numbers suggest that.
Time Warner -- would be willing to lose -- -- of 60000.
Subscribers to make the numbers even.
So they'd rather lose that many subscribers and pay the extra -- even if you think it's a 30% more -- may be willing to lose 40000 subscribers we think that number.
-- like let me just say though this is not just.
-- basketball story this is also a hockey story amnesty for those of you don't help carry the Rangers the Rangers are suddenly hot.
They also have the rights to the Buffalo Sabres up in upstate New York.
Sabres fans are absolutely crates plus or break -- Canada -- a lot of people who were watching sabres.
So you now have about confirmed this to ranger fans who the two ranger players rather -- blood test and mark -- who live in Manhattan building.
And hat Time Warner they were able to switch defiance of the here two examples of people who dumped and now I'm hearing that -- walked president's.
These apartment building presidents are hearing from their tenants that they're going absolutely nuts and -- saying get violence get RC and get something I need to see next.
Well -- -- 2000002 week it was subscribers and then the New York area.
-- -- majority of those are New York City and dignity 700000 of those are upstate so.
There is less risk because of that of state.
And that's where the majority of the sorry -- fans forget that the majority of the -- interest so I again I'm not sure that's gonna translate to enough of of a subscriber risk.
Look at the second and talk was just bought a Jeremy -- You've got that you -- be the Jersey didn't you yeah yesterday for -- for itself what and that they're sold out.
Robert great reporting their sold out -- let me give you another statement from another analyst because we call the bunch of -- -- -- -- Craig Moffett of Sanford C Bernstein says quote.
There is no question the Jeremy one's arrival has turned up the paid on Time Warner Cable there's a level of interest in knicks games that we haven't seen in years.
If you -- -- want to that he's goes on to say it's still expensive for.
Time Warner Cable to carry this but if you want to point to a single reason why -- pay TV subscription starts at eighty dollars per month.
Pointing at sports networks like MSJ would be a pretty good place to start what buffet is saying is that this is not very expensive for the companies well.
And here Time Warner Cable is kind of taking for the industry and we saw this on several years ago when -- at the same thing with the SP -- -- -- -- -- -- -- -- for ESPN so -- we cable quite frankly is doing is not just for them but for the whole industry quickly do you see a resolution at some point cents.
I think by the spring I think we'll see this spring yeah we'll see resolution.
Look at what the rappers are playing tonight on MSG sorry if you have Time -- he can't see them in New York aren't paying -- -- it's great to see you thanks.
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