Understanding TV Programming Disputes & Channel Blackouts

Optimum is dedicated to providing you, our customers, with an exceptional TV experience at a great value including access to a
wide array of networks on our channel lineups.

How it works

Cable TV operators, such as Optimum, must enter into contracts with programmers and pay them monthly fees to carry their stations and networks on our lineup. The fees that we pay programmers make up the majority of your monthly TV bill. Most of these contracts are negotiated and renewed without disruption or our customers even knowing.

Why disputes happen

Programmers in recent years have been demanding exorbitant rate increases from cable TV providers that would make it impossible for us to continue to offer TV packages at a great value. Unfortunately, programmers use the removal of their channels as a negotiation tactic to force us to accept their outrageous demands.

Compare and contrast to cup of coffee

Over the last couple of years, programmers have demanded fee increases as
high as 400-1,000%. Imagine a world where other costs jumped that high!

Price today
$4.90

400% increase
$24.50

1,000% increase
$53.90

Programming blackouts

Over time, programmers have become more willing to blackout their programming from TV providers, putting
their own viewers in the middle of a business dispute. According to ATVA, there were 105 blackouts in 2021.

Disputes tend to happen at the most inconvenient times.

Think it’s a coincidence that channels tend to go dark right before a major TV premier or a sports event? Not at all! Many programmers are willing to use their marquee programming as leverage during disputes to put pressure on TV providers, but it also inflicts the most pain on the viewer.

Broadcast content is among the priciest, even though it’s available for free over the air.

The owners of local broadcast stations like ABC, CBS, FOX, and NBC are available over the air for free via an antenna. However, due to an outdated law called Retransmission Content, they are allowed to charge TV providers like Optimum to carry their content. Retransmission fees are the fastest accumulating part of your monthly TV bill, costing customers billions yearly. In 2023, it is estimated that broadcast stations will charge customers over $12.8B, even though broadcast stations are available for free over the air.

More channels, less choice, higher prices.

Some programmers who own many different channels often require TV providers to carry ALL of their networks–so you’re paying for channels you don’t watch. Some programmers even require that TV providers, like Optimum, pay a fee for ALL their customers, instead of just those who want the network in their TV package. They also require that their networks are carried on certain tiers and to a certain percentage of customers. Ultimately, all this behavior limits choice and drives up costs.

Disputes tend to happen at the most inconvenient times.
Broadcast content is among the priciest, even though it’s available for free over the air.
More channels, lesschoice, higher prices.

What we are doing and what you can do

To keep costs down, Optimum works hard during its negotiations with programmers to strike a fair
and balanced deal for our customers. Groups like the American Television Alliance (ATVA) are working hard to solve
this problem. The ATVA website provides a variety of ways for consumers to reach out to the government to
help enact change.

Learn more

Optimum is on your side