Published: December 18, 2011

Time Warner Cable Pledges to Not Take MSG Off the Air

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NEW YORK - (BUSINESS WIRE) - Time Warner Cable today reiterated its pledge to not take MSG off the air through the NHL and NBA seasons.

"We will not remove MSG/MSG+ from our New York cable systems," said Mike Angus, Senior Vice President, Content Acquisition for Time Warner Cable. "That ball is in MSG's court, so these channels will come off only if MSG pulls the plug."

"Time Warner Cable and our customers have stood by MSG and its teams through thick and thin," Angus continued. "Our customers have paid whether the teams won or lost; they deserve better."

"While we continue to work through this issue, we are offering to continue carrying MSG/MSG+ at a 6.5% increase through the end of the 2011-2012 NBA and NHL seasons," Angus wrote in a letter to MSG Media President Michael Bair. "You have our commitment to work hard to reach an agreement that will assure our customers continued access to MSG's teams for years to come."

After pulling their original ask for a 6.5% increase in fees off the table, today MSG is demanding a 53% increase in fees over what Time Warner Cable paid in 2011.

"Programming costs are skyrocketing, and we work very hard to negotiate lower fee increases to keep our customers' bills as reasonable as possible. 53% is not reasonable in anybody's book - I doubt many of our customers got a 53% raise this year," Angus said.

MSG is demanding carriage of Fuse as a condition to Time Warner Cable's distribution of MSG/MSG+, at a cost of millions of dollars. "Fuse is watched by fewer than one-tenth of one percent of the customers who have it available - that's just 4,000 customers out of more than 7.4 million. Asking our customers to pay millions for a channel they clearly don't want and don't value is nothing more than a tax on New York sports fans.

"We're hopeful that MSG will put fans first and do the right thing for their viewers and our customers," Angus added. "We're willing to pay a reasonable increase and we're willing to keep the channels on while we negotiate. We are hopeful that we'll be able to reach agreement without putting New York sports fans in the middle of this dispute. We think these customers deserve better."

For more information on the MSG dispute and a full version of TWC's letter to MSG, please visit www.twcconversations.com.

About Time Warner Cable

Time Warner Cable Inc. (NYSE: TWC) is among the largest providers of video, high-speed data and phone services in the United States, connecting more than 14 million customers to entertainment, information and each other. Time Warner Cable Business Class offers data, video and phone services to businesses of all sizes, cell tower backhaul services to wireless carriers, and through its NaviSite subsidiary, enterprise-class hosting, managed application, messaging and cloud services. Time Warner Cable Media, the advertising arm of Time Warner Cable, offers national, regional and local companies innovative advertising solutions. More information about the services of Time Warner Cable is available at www.timewarnercable.com, www.twcbc.com, www.navisite.com, and www.twcmedia.com.

Complete text of letter from Time Warner Cable SVP, Content Acquisition to Michael Bair, MSG Media President:

December 18, 2011

Michael Bair
President, MSG Media
Two Pennsylvania Plaza
New York, NY 10121-0091

Re: MSG/MSG+

Dear Mike:

Despite our unsuccessful attempts to date, Time Warner Cable continues to believe that a renewal for MSG/MSG+ is easily achievable.

In March of this year and again over the summer, MSG offered to renew MSG/MSG+ for three years at 6.5% annual increases. As we had indicated before, we remain ready and willing to enter into a long term agreement at those prices. The only obstacle that prevented us from reaching agreement on those terms was MSG's insistence that Time Warner Cable carry and pay millions of dollars for Fuse music network, even though we made it clear that the Fuse network had scant viewership and little value to our customers. We are happy to discuss the future of Fuse separately, but right now our customers and your viewers deserve our undivided attention on resolving the future of MSG/MSG+. While we continue to work through this issue, we are offering to continue carrying MSG/MSG+ at a 6.5% increase through the end of the 2011-2012 NBA and NHL seasons.

To be clear, Time Warner Cable has never threatened to, and will not, remove MSG/MSG+ from our lineups. That decision rests squarely with MSG - the channels will only come off Time Warner Cable systems if MSG takes them away. We ask that MSG not punish the same New York sports fans who have stood by MSG and all of its teams through thick and thin. These fans have paid the tab during the difficult years, and now, just when things are getting good for the Knicks, the very same fans are faced with going from lockout to blackout. Our customers have paid whether the teams won or lost; they deserve better.

In that spirit, I am hopeful that you will accept this offer to extend without punishing sports fans across the region. You have our commitment to work hard to reach an agreement that will assure our customers continued access to MSG's teams for years to come.

Very truly yours,

Mike Angus