What oligopoly?
Regards
Craig
http://www.multichannel.com/news/telco-tv/espn-takes-issue-fios-custom-tv/389925
ESPN Takes Issue With FiOS Custom TV
Verizon’s Custom TV package is getting some pushback from content providers –
in particular ESPN – that are claiming that the so-called “skinny TV” package
from the telcos’ FiOS TV offering is in violation of their existing carriage
agreements.
Verizon announced Custom TV on April 17 with much fanfare in advance of its
Sunday (April 19) launch. Custom TV was touted as the next step toward
unbundling video, offering 35 base channels like the four broadcast networks,
CNN, HGTV, Food Network, AMC and WeTV and the option to select two “Channel
Packs” in the Lifestyle, Entertainment, News & Info, Pop Culture, Kids, Sports
and Sports Plus genres for as little as $54.99 per month for the first year.
According to the deal, customers could choose additional Channel Packs for $10
more per month.
But shortly after the announcement, website Re/Code reported that ESPN, which
along with ESPN2 is part of the Custom TV Sports Pack, had taken offense to the
inclusion.
“Media reports about Verizon’s new contemplated bundles describe packages that
would not be authorized by our existing agreements,” ESPN said in a statement.
“Among other issues, our contracts clearly provide that neither ESPN nor ESPN2
may be distributed in a separate sports package.”
ESPN is not alone in its consternation. At Fox Sports, whose Fox Sports 1 and
Fox Sports 2 channels are also relegated to the Custom TV Sports Pack,
executives did not share the same interpretation of their carriage agreement as
Verizon. And late Tuesday, NBC Universal added its name to the growing list of
peeved programmers, stating that "Verizon's announced 'Custom TV' package does
not comply with our existing agreement."
"We reject Verizon’s view that it can pursue the new packaging scheme it
announced yet still comply with our agreements," Fox Sports said in a
statement. "That said, we prefer to keep our commercial discussions
confidential, and we will continue to address our concerns directly and
privately with Verizon."
On the surface Custom TV appears to be yet another attempt by distributors to
offer skinny bundles, or fewer channels for lower prices. The Custom TV
offering appears to be close to Dish Network’s over the top offering, Sling TV,
which offers a package of 21 base channels (including ESPN and ESPN2) for $20
per month and additional channels grouped by genre – like sports, kids and
family, entertainment and news & info – for an additional $5 per month.
Whether Verizon just badly misinterpreted its carriage agreements or not is
still a mystery -- according to reports the company said it designed the
packages in compliance with its programming agreements. Whether the telco will
be forced to make ESPN and ESPN2 part of the base Custom TV package – and
whether that will affect the price – remains to be seen. ESPN said it would not
comment beyond its statement.
Verizon did not return requests for comment.