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ESPN Says Verizon’s New FiOS TV Packages Violate Contract

ESPN started to quarrel back after Verizon (NASDAQ:VZ) unveiled its plans to provide a new sort of FiOS TV package, which divides the channels into cheaper and semi-a la carte bundle.verizon-fiostv-packages

The favorite channels that your cable providers provide are under several contracts from the channel broadcasters, and in the meanwhile, the contracts will have a number of stipulations. For example, the powerhouse channels will come only with other channels that are less in popularity. These sorts of stipulations will help the other channels to gain some reputations and some revenues too. Channels that have highly powerful networks such as ESPN, will come with the most widely-distributed packages, similar to the things I mentioned earlier.

Walt Disney’s massive sports networks responded to the Verizon’s new bundle plan, in a statement as,

Verizon’s new bundles “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.”

Verizon comes with a noteworthy plans that seems to be sidestepping from such stipulations and gives a new set of experiences to its programming partners. The new plan with customizable option seems to be the violation of rules and guidelines of ESPN and the base plan of the FiOS packages doesn’t come with any sports channel.

On new plan, the customer gets base channels, broadband internet and also additional two add-on bundles for $65 per month. The ESPN channel gets separated with a sports bundle, that can be included in any two bundles or else the user can get the channel for $10 per month.

Tami Erwin FiOS president mentioned that the plans are designed in, such as way that, they “expects to be in a position of compliance”. In the meantime, the company has used a public announcement techniques to force the programming partners to agree to the agreement.

Check all FiOS TV Packages from the official site.

[ Source ][ Via ]

About John W Arthur

John is the head of our IT Security team and he writes about Security, IT news on The Next Digit. He was the Employee of the Year 2013 for his selfless support and efficiently setting up the whole security infrastructure. He also occasionally writes on "IT Sec Pro" Print Media of Sweden. All posts by John

One comment

  1. How ESPN has evaded antitrust scrutiny over this bald tie in for this long simply astounds me. The consumer damages are enormous. In economic parlance, ESPN has used its monopoly power to force subscribers to pay for channels they do not watch in order to get others that they do want. ESPN's scheme was imposed through litigation and pressure put upon the cable carriers. ESPN insists on being in the "basic bundle" but also demands a monopoly rent that would normally push it to a separate pricing tier if not for the coercion. Probably 70% of consumers want even more sports – that still doesn't justify involuntary charges to the rest of us. I hope the Justice Dept, FTC and FCC are watching this. Verizon's move is proper and in the public interest (especially if its not a hidden price increase). ESPN should back off now! By the way, where's a class action lawsuit when we need one?

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