Send me real-time posts from this site at my email
Brian Matta

FOX and NBC Unhappy with New Verizon Plan

Verizon (NYSE:VZ) is attempting to take major sports channels off the basic cable package and is creating a stand off with some of the biggest media companies in the country. The largest of these sports companies, ESPN (NYSE: DIS), says the new pricing plan Verizon has is not authorized by existing agreements. Seconding this comment is both Fox Sports 1 (NASDAQ: FOX) and NBC Sports Network (NASDAQ: CMCSA), which also oppose Verizon's new distribution plan. 

"We believe that we are allowed to offer these packages under our existing contracts," Verizon's Chief Financial Officer, Francis Shammo, according to CNN.

This ongoing battle in the cable bundles is underscoring how people generally feel about television. There is an uncertainty in the industry with the rise of the Internet, the old cable bundles, which gave a consumer a large amount of channels may have worked ten years ago, but are now out of date. 

According to CNN, the business models for companies like Walt Disney Company (NYSE: DIS), which owns ESPN and its website, are predicated by cable subscribers. So this isn't just a worry for television, but maybe even these companies whole business model.

"Verizon's announced 'Custom TV' package does not comply with our existing agreement," NBC Universal (NASDAQ: CMCSA) said.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue