ESPN and FOX Aren’t Happy With ‘Skinny Bundles’

By Karen Fratti 

ESPNsportscenterFor the first time ever, it’s sort of hard to be mad at a cable company. Yesterday, ESPN announced that they are suing Verizon over their ‘skinny bundles,’ and Disney and Fox are refusing to take advertising for it. The networks are claiming that the Custom TV packages, which allow people to subscribe to a base package and then add on tiers of networks for $10. ESPN is included in a sports package, but not the base.

It solves that age old problem of having too many channels you don’t actually watch and subsidizing your neighbors’ Sportscenter habit. From the Wall Street Journal:

ESPN argues that while distributors have the right to create smaller packages for customers that exclude its networks, distributors can’t then put ESPN channels into a separate add-on sports bundle.

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Verizon says it is trying to give consumers more choice and is within its rights. “Looks like they are suing consumers to force them into a one-size-fits-all bundle,” a Verizon spokesman said. Verizon added that CBS Corp. is allowing its sports channel to be placed in a separate tier of similar networks.

When Verizon announced the packages last week, it seemed like it would be inconsequential, since the packages aren’t all that cheap and the user interface for signing up and browsing is impossible. But if enough networks are riled up, it might turn into the time and place to finally have a talk about a la carte cable packages. And it’s about time. Verizon might be violating the terms of their contracts, and if that’s the case, it’s time to write new ones. Networks seriously think customers want to sign up individually for video on demand coming from them. That’s just not the case, nor is it a viable business model. Get with the program, ESPN.

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