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Altitude Sports loses more distribution ground amid pricing, reach issues

Altitude Sports & Entertainment (US)'s distribution woes grew higher over the Labor Day weekend.

The regional sports network, home to the National Basketball Association's Denver Nuggets and the National Hockey League's Colorado Avalanche, did not reach new carriage agreements with Comcast Corp. or AT&T Inc.'s DIRECTV by Sept. 1 and has been unavailable to those distributors' video subscribers since then. The disconnect follows the network going dark to DISH Network Corp. subscribers when Altitude's prior deal with DISH expired Aug. 29.

In addition to pricing disagreements — always at the heart of network carriage battles — Altitude's disputes also center on the RSN's position and penetration level.

Kenny Miller, the executive vice president of Altitude, told The Denver Post that Comcast and DIRECTV were seeking a reduction in both rates and the total number of subscribers reached. Altitude, whose territory extends into 10 states, also televises games from Major League Soccer's Colorado Rapids, the National Lacrosse League's Colorado Mammoth — plus college and high school sports.

DISH Senior Vice President of Programming Andy LeCuyer said in a recent statement that the dispute with Altitude comes down to the RSN seeking payment for a guaranteed number of subscribers. He added that DISH is no longer going to support "the broken regional sports TV business model" under which "the majority of pay TV customers pay for the few who watch."

AT&T in its statement said the company made a fair offer to keep the channel available, but Altitude rejected it. It reiterated its previous stance, saying that AT&T aims to provide the games to fans "at a value that makes sense to our customers overall."

Comcast said Altitude for years has been seeking significant annual price increases that have driven up the costs for its subscribers in Colorado and Utah, even though most do not watch the channel. Comcast said it wants to reach a deal but at a reasonable price.

Kagan, a media market research group within S&P Global Market Intelligence, estimated the RSN's average monthly affiliate fee at $2.13 per subscriber in 2019.

During a recent interview, Matt Hutchings, the executive vice president and COO of Kroenke Sports & Entertainment LLC, which owns the network and the aforementioned professional teams, said the three distributors, all of which have carried Altitude since its launch in 2004, are seeking a decline in rates. He added that what they are offering is not "financially viable."

Hutchings also noted that the pricing structure Altitude wants to retain is the "exact same model" Comcast benefits from with its own regional sports networks. AT&T also owns and operates regional sports networks.

Altitude and KSE did not return calls seeking comment by press time.

While the MLS season continues with the next Rapids match slated to air on Altitude on Sept. 11, the NHL Avalanche's six-game preseason does not start until Sept. 17. The Altitude Radio Network will cover the games, but the TV schedule has not yet been announced. The regular season faces off Oct. 3, matching the Avalanche versus Calgary. The NBA Nuggets have four preseason affairs, with the final two on Oct. 14 and Oct 17, scheduled to be televised by Altitude. The RSN's regular-season slate tips Oct. 23, with the Nuggets' opener against Portland.