ESPN is raising concerns about Verizon’s proposed FiOS TV plans, which allows customers to break up traditional TV bundles. The new Verizon Communications offering is designed to allow customers more variety in building their TV channel packages.
The bundle, which became available April 19, pair major broadcasters and cable networks like CNN and AMC with small-genre packages like news, kids and sports.
As previously reported by RCR Wireless News, Verizon has plans to use college sports to drive customers to its mobile entertainment services and battle over-the-top content providers.
ESPN and ESPN 2 are not included in the core packages; instead they are separated into a separate sports tier. The sports media giant said Verizon doesn’t have the right to separate their channel from the core offering, saying such packages “would not be authorized by our existing agreements.”
This comes at a time when cable channels are facing drop-offs in subscriptions due to increased competition from online and over-the-top providers such as Netflix and Hulu. Major channels like ESPN typically have contracts with distributors that stipulate they have to be included in the most widely distributed tiers or must reach a certain percentage of the customer base.
Verizon FiOS President Tami Erwin said the package is designed so that it will not violate any content contracts.
While others have not yet weighed in on the new service, other channels such as Time Warner’s TNT and TBS and Comcast’s USA Network have also been put into tiers under the Verizon service plan.
