Verizon is offering cheaper, a la carte bundles to its FiOS TV subscribers. Under the new plan, customers get the base channels, broadband Internet and two more bundles as add-ons that would cost them an additional charge of $10 a month.
ESPN, however, said that Verizon's new bundle packages are not authorized by existing agreements between the two companies.
"Among other issues, our contracts clearly provide that neither ESPN nor ESPN2 may be distributed in a separate sports package," said ESPN. The company added that the new offers "would not be authorized by existing agreements."
The proposed a la carte system by Verizon would relegate ESPN and ESPN2 as an optional Sports package. This would mean that base package subscribers who want either or both of these channels would be required to pay an additional fee. Subscribers can choose from seven add-on bundles offered by Verizon.
These channel packs come in a variety of genres such as sports plus, sports, news and info, entertainment, lifestyle, pop culture and kids. After 30 days, subscribers can opt to change their channel packs at no extra cost. In order to get more value out of their subscription, customers are encouraged to commit to a two-year contract. Likewise, customers who are willing to pay a few more bucks can opt to have month-to-month plans.
The sports pack will include FOX Sports and ESPN. In order to get regional sports networks, subscribers are advised to opt for the sports plus channel bundle, which includes Golf Channel, NHL Network, NBA TV, MLB Network and NFL Network.
According to a report released by Nielsen's Advertising & Audience, Americans typically watch only about 17 channels from their cable package subscription, which may contain over 100 channels.
The new bundle scheme by Verizon is the company's way of keeping its video customers from flocking to streaming-based options that are offered by companies such as Hulu and Netflix. It's also their way of solving customer complaints on paying for channels they don't actually watch.
"This is an entirely new way to personalize TV," said Tami Erwin, president of Verizon's Consumer and Mass Business group.
The new FiOS TV bundles are scheduled to become available beginning April 19. It remains to be seen whether the date would remain unchanged or be moved to a later date given the fact that ESPN is opposing the new TV bundles.
