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ESPN Says Verizon's New FiOS Channel Options Violate Contracts

As we noted last week, Verizon is now offering a more flexible channel lineup to FiOS TV customers. While it's not a la carte, and your actual cost savings may be hit or miss, the telco will be offering users a smaller, cheaper bundle of base channels, plus the ability to add on an assortment of "channel packs." It's a move clearly influenced by Dish Network's Sling TV effort, designed to pretty clearly lure people away from cable and prevent cord cutting.

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Not everybody is happy about Verizon's attempt to offer a little more channel flexibility. ESPN has issued this statement to media outlets claiming that Verizon's new, more flexible channel options violate Verizon's contract with ESPN:
quote:
"Media reports about Verizon’s new contemplated bundles describe packages that would not be authorized by our existing agreements. Among other issues, our contracts clearly provide that neither ESPN nor ESPN2 may be distributed in a separate sports package."
ESPN is of course one of the biggest culprits for soaring cable costs, and Verizon's placement of ESPN content in an optional sports tier obviously weakens ESPN's power over and visibility within the cable pricing ecosystem. ESPN isn't saying how they plan to tackle this disagreement, and I'm still waiting for a comment from Verizon regarding the fracas. Verizon's decision to break sports content out of the core cable lineup is just the opening shot in what will be a long battle over breaking up the traditional cable bundle.

Meanwhile, we'll explore in more detail in a follow up piece whether the offering actually saves users money once I've had some time to talk with users that sign up for the plan (and see what they actually pay once fees and other charges are added).

Most recommended from 67 comments



aaronwt
Premium Member
join:2004-11-07
Woodbridge, VA

9 recommendations

aaronwt

Premium Member

I would love for them to pull the ESPN channels...

if that meant my cable bill would drop $7.
moonpuppy (banned)
join:2000-08-21
Glen Burnie, MD

6 recommendations

moonpuppy (banned)

Member

Shots fired

I am surprised it took this long for someone to start pushing back. Hopefully, Verizon sticks it to ESPN and they can take ABC and Disney with them.

Zenit_IIfx
The system is the solution
Premium Member
join:2012-05-07
Purcellville, VA
·Comcast XFINITY

3 recommendations

Zenit_IIfx

Premium Member

This is a good start.

I am surprised VZ is the first large "MSO" (in quotes as they are really an ILEC) to really start annoying the ESPN cartel.

Not breaking out the popcorn yet though...if Comcast joined them in something similar that would be entertaining to watch...but of course they wont use their large industry leverage to help the consumers, we will keep paying the high rates.

Most people only want the base channels and a handful of channels above the basic package...cant wait to see how this news FIOS TV package works out, although I will personally never see it as any area I will be living in for the foreseeable future either has no FIOS or no FIOS franchise for TV.
mikesco8
join:2006-02-17
Southwick, MA

2 recommendations

mikesco8

Member

Hopefully...

At the very least it may bring this issue to national attention and cause the FTC, FCC and DOJ to wake up to content providers heavy handed tactics that confine consumer choice and cause them to act.

maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA

2 recommendations

maartena

Premium Member

Didn't take long.

First provider wants to give the customer more choice. Content owners fire back with not wanting to give the customer better choice and control of their costs.

I am hoping Verizon takes this all the way to court.