Cablevision focus of antitrust probe (Yes/Yankees)

North Jersey News ^ | December 10 2002 | AP

[Outraged At FLA]

Cablevision focus of antitrust probe Tuesday, December 10, 2002

Associated Press

NEWARK - The state Attorney General's Office is reportedly investigating whether Cablevision Systems Corp. violated antitrust laws by refusing to broadcast the YES Network.

The staff of Attorney General David Samson demanded internal records, e-mails and other documents from Cablevision in the past month, according to a published report. .

The company must respond to the subpoena by the middle of this month, sources reportedly said. .

Cablevision spokesman Charlie Schueler confirmed the investigation and said the company is cooperating.

"We believe the inquiry is unwarranted and we will comply as appropriate," he said.

Samson declined to comment. He has disqualified himself from all matters related to Cablevision because the law firm he founded before becoming attorney general once represented the company.

A lawyer who represents YES, Alan Vickery, said the investigation was "one example" of Cablevision's conduct, which he called "anti-consumer and anti-competitive."

YES sports network and Cablevision have been in a dispute over YES' insistence on basic cable channel status, a request that 35 regional cable companies (with 5 million customers) agreed was fine. Cablevision instead wants to make YES a premium network and charge subscribers $2 a month.

Because the network and cable company could not reach an agreement, Yankees fans served by Cablevision couldn't watch most of the games this summer.

The network is owned by YankeeNets, which controls the Yankees and the Nets and Devils.

Cablevision owns Madison Square Garden, the MSG Network, and the Knicks and Rangers. Before this year, Yankees games were shown on the MSG Network.

YES filed an antitrust lawsuit against Cablevision, claiming it refused to carry YES because it competed with Cablevision's MSG Network and Fox Sports New York. The lawsuit is pending in U.S. District Court in New York and could go to trial next year.

New Jersey began monitoring the dispute between YES and Cablevision after residents complained they couldn't watch most Yankees games.

Cablevision has 2.9 million subscribers in the New York metropolitan area, including 1 million in New Jersey. It is the second-largest cable company in New Jersey.

[Outraged At FLA]

Well, you cable monkeys might get to watch the Yankees and the Nets yet..

[ken5050]

CVC is entirely within their rights.....they offered to put the Yankees on pay-per view, AND let Yankees keep ALL the revenue, but Yankees refused.....YERS will lose.......average Yankee game audience is 200K gave or take, on Cablevision...but they want CVC to pay $12/year for each of its 2.9 million subscribers. YES is screwed, becuase if they renegotiate their rates with CVC,then they have to do the same with the other cable systems....

[Outraged At FLA]

Actually, CVC does what the YES network wants with it's own channels like MSG. If it will do the same for MSG (They own MSG) and not for YES, it is classic anti-trust...

[ml/nj]

Well I'm outraged in NJ that our Attorney General even thinks about bringing such a case. I'd like to ask him whether he would have thought about it if YES wanted to charge Cablevision $75 per subscriber. The way the business has worked until now is that the various content providers have a per subscriber price, and the cable companies buy or don't buy based upon content and price just like every other business. But that's not good enough for Boss George, so he bought a few Jersey pols and acts as if he is doing the little people a favor

ML/NJ

[Outraged At FLA]

It has nothing to do with George. The fact is, YES is offering the same deal that MSG offers CV (which CV owns part of). They have comparable audiences and revenues, but CV is practicing anti-competitive practices by not allowing YES in the door for the same money.

This is what is being alledged, and if true, it is typical anti-trust behavior.