Comcast-Altitude TV blackout: Why Avalanche, Nuggets fans should prepare to miss fourth consecutive season to carriage dispute

Oct. 10—DENVER — The Comcast-Altitude TV carriage dispute, blacking out local Nuggets and Avalanche games on the state's largest cable provider, probably will consume a fourth consecutive season.

The Avs return Wednesday night to raise a Stanley Cup banner inside Ball Arena. The Nuggets and reigning two-time MVP Nikola Jokic begin their title quest a week later. Yet Altitude — a Kroenke Sports and Entertainment-owned regional sports network (RSN) with exclusive local broadcast rights — has been unavailable for most cable subscribers in Colorado since 2019.

The lack of resolution stems from a variety of factors: slow-moving litigation, failed mediation efforts, an evolving media landscape, and billion-dollar entities prioritizing financial interests over loyal fans that help pay the bills.

Altitude scheduled a Tuesday news conference to provide an update on Comcast negotiations with Matt Hutchings, president of Kroenke Sports and Entertainment media ventures, in attendance.

Here is an examination of why little optimism exists that locally broadcast Nuggets and Avalanche games will be available on Comcast in 2022-23.

Antitrust lawsuit, failed mediation

One possible blackout resolution: Determine the verdict in a November 2019 antitrust lawsuit filed against Comcast.

Altitude claims the cable giant would only accept terms that would put it out of business, allowing Comcast to buy or eliminate the RSN. Comcast argued that Altitude's proposal does not reflect demand for viewership, and that it remains willing "to distribute Altitude on terms and conditions that make sense for our customers."

A verdict in favor of Altitude could force Comcast to reconsider contract terms the RSN finds acceptable. A verdict in favor of Comcast might lead Altitude to change its distribution model. Two previous mediation efforts between the parties failed. A jury trial is possible.

The drawback to a legal resolution, though, is a lengthy timeline.

Recent court documents obtained by The Denver Gazette list the final pretrial conference date as Nov. 27, 2023 — well after the completion of upcoming Nuggets and Avalanche seasons. U.S. Magistrate Judge Michael E. Hegarty wrote in the amended scheduling order: "The parties are advised that given the age of this case, the Court will not be inclined to grant further extensions of these deadlines."

Altitude and Comcast have declined to comment on specific case progress since entering mediation. It is likely both sides will continue working behind the scenes to settle out of court, avoiding public scrutiny of their respective business practices, with a possible agreement that ends the TV blackout.

But a distinct lack of progress to this point — two years, 10 months and 23 days since the lawsuit was initially filed — suggests a quick resolution is not on the horizon.

Message vs. leverage

Since 2019, when Altitude's previous contract with Comcast expired, the RSN has aggressively sought to expand distribution. Altitude is available on three local carriers entering the 2022-23 season:

— DirecTV: $69/month (introductory rate)

— Evoca: $30/month (includes equipment rental fee)

— FuboTV: $69/month

It still hasn't moved the needle in Altitude contract negotiations. Why? Because that viewership probably is a drop in the bucket compared to Comcast's subscriber-base flood.

Altitude, in its antitrust lawsuit, said that 92% of all cable customers across 48 counties in Colorado have Comcast. Switching providers is often more difficult than simply cutting the cord. Comcast customers typically bundle high-speed internet service, with multiyear contract agreements, for significant cost savings.

Altitude strategically picked the day before Colorado's NHL season opener to finally meet with reporters after months of declining repeated interview requests from The Denver Gazette. Altitude's news release stated that it will "unveil a new effort to end Comcast's continuing blackout of the network."

But history suggests Altitude lacks the necessary leverage, outside of potentially a courtroom, to make Comcast agree to its contract terms.

In December, Altitude offered fans a glimmer of hope with a rare announcement: The RSN prepared a new offer for Comcast ahead of mediation that Hutchings said would "bring the case to a close and return the network to Comcast for Front Range fans," according to a news release. That never happened.

In July, Altitude once again broke its silence with a specific pitch to Comcast: Match the same pricing terms and distribution model Comcast currently provides to AT&T Sportsnet Rocky Mountain, the RSN home of the Colorado Rockies. That didn't work, either.

"Since the mediation, Altitude has not made any new offers that would enable us to provide their channel and programming on Comcast," Comcast spokeswoman Leslie Oliver told The Gazette in a Monday evening statement. "We remain open to a proposal allowing Comcast to show the games to those customers who want to subscribe and watch the games without raising rates for all Comcast customers."

Future of RSNs

Nuggets and Avalanche faithful are not alone in their RSN blackout despair. Just ask fans of the Devils, Islanders, Knicks and Rangers living in New York who are unable to watch local MSG Network games on Comcast due to a similar contract dispute.

The commonality between Altitude and MSG is independent ownership. Unlike most RSNs, run by huge media conglomerates that cover multiple states, Altitude is owned by the Stan Kroenke family and MSG is owned by the Dolan family. But even the largest RSNs are struggling for survival in a monopolized industry.

Diamond Sports Group (DSG), a subsidiary of Sinclair Broadcasting, operates 21 different RSNs across the nation (Bally Sports). Yet DSG has reportedly upward of $8 billion in debt and might be up for sale in the near future, according to the Sports Business Journal.

It begs the billion-dollar question: Why does the Kroenke family want to remain in the RSN business?

Stan Kroenke's incredible net worth ($12.9 billion per Forbes) would hardly take a dip if he pulled out. In June, Josh Kroenke told local media the network was funding Altitude "to a major loss right now." It's unclear how much longer they'll pick up the tab.

But the Kroenkes' willingness to incur short-term losses, without selling or reconfiguring Altitude, suggests that he's holding out for long-term gains. The RSN model is changing to adapt for streaming services. It's probable that Stan Kroenke is standing pat to cash in when the timing is right.

For now, there is little hope for a direct-to-consumer Altitude streaming option for locally broadcast games. DSG, the faltering national RSN chain, is pushing forward with Bally Sports Plus — a $19.99/monthly direct-to-consumer livestreaming service for local NHL and NBA market games. But it's unclear if that will help DSG financially recover or sink it further toward oblivion.

So, settle in, Nuggets and Avalanche fans.

The long wait for Altitude's return on Comcast continues.