ESPN Locks Horns With Verizon Over Cheaper Cable Packages
ESPN has filed a suit against Verizon on Monday for creating cheaper smaller cable offerings that include the sports network's channels, allegedly without permission.
Earlier this month, Verizon had announced that is FiOS cable service would offer "Custom TV," will slimmer and less-expensive packages of channels grouped by genres, The Washington Post reported.
Apart from ESPN, NBC and Fox also protested as their revenues are closely tied to preserving the long-standing cable bundle.
ESPN, owned by Walt Disney Co., said Verizon's slimmer bundles violated licensing agreements for ESPN and ESPN2.
"ESPN is at the forefront of embracing innovative ways to deliver high-quality content and value to consumers on multiple platforms, but that must be done in compliance with our agreements. We simply ask that Verizon abide by the terms of our contracts," the company said in a statement.
"Consumers have spoken loud and clear that they want choice, and the industry should be focused on giving consumers what they want. We are well within our rights under our agreements to offer our customers these choices," said Verizon spokeswoman Deirdre Hart.