SubscribeComcast/NBCUniversal today joined FOX and ESPN warning Verizon it is violating the terms of their agreements by offering FiOS TV customers slimmed-down, less expensive cable TV packages.
Verizon began offering the new packages Sunday, selling customers a basic core package containing two “channel packs” of the customer’s choice for $55 a month. Each additional pack of 10-17 theme-based channels costs $10 a month. It is Verizon’s effort to offer customers something closer to an a-la-carte option where customers pay only for the channels they want, without raising the ire of their programming partners who supply both major and minor cable networks.
Within hours of learning of Verizon’s Custom TV offer, ESPN — the most expensive basic cable network in the country — objected, saying its network must be included in the core package that every pay television customer receives.
By this afternoon, Comcast/NBCUniversal and FOX added their own objections and are warning there could be legal ramifications if Verizon continues to offer the packages. Both Comcast and FOX agree with ESPN’s contention their contracts with Verizon do not allow it to split their channels into add-on tiers.
Verizon responded it doesn’t intend to change a thing.
“We have launched the product, we are not retracting it, and we believe we are in our legal rights to launch it,” said Verizon chief financial officer Fran Shammo.
The lawyers are expected to take it from here.
[flv width=”640″ height=”406″]http://www.phillipdampier.com/video/WSJ Verizon Breaks Pay-TV Bundle as Competition Mounts 4-19-15.flv[/flv]
The Wall Street Journal reports on Verizon’s new slimmed-down TV package and why Verizon FiOS TV is offering it to subscribers. (2:24)
You want to know what’s the best thing about cord cutting? Getting rid of sh** you don’t want to see. Most people don’t realize this, but do you know why your cable TV bill is so expensive? It’s because the broadcasters/content providers charge enormous rates to the last mile companies such as Verizon, AT&T, Cox, and Comcast to deliver it to you. Cable TV is an outdated unsustainable business model. If these last mile companies got out of the TV business and just delivered internet alone, not only would their profits jump, it would force broadcasters to strike deals to… Read more »
We do not have to buy a predetermined amount of specific products when we go to the grocery store, a clothing store, or hardware and building supply stores. We are told we need to do this with cable television. Sports programming is some of the most expensive in the bundled packages. I do not see why those who do not want to watch sports programs should share in the cost of them.