Verizon's latest cable TV offering promises more choice for less money, but you can find better bargains elsewhere. It's a notable move by a major cable abc sports fios channel to appeal to customers who are cutting the cord in favor of cheaper streaming services such as Netflix, Hulu and Sling. So how much flexibility and savings do subscribers actually get? Not as much as Verizon would like you to believe.
Verizon emailed Fios video subscribers Wednesday, warning that the contract between the two companies will expire Dec. Verizon told subscribers that Disney has rejected its offers.
The companies reached a broad-based, multiyear agreement, with details to be released in coming days, Verizon spokeswoman Adria Tomaszewski said Sunday. The agreement, if finalized, shows that pay-TV operators are still willing to pay for pricey sports channels even in an age of video streaming and declining viewership.
Disney is also demanding that Verizon include ACC Network, a regional sports channel, in order to carry other Disney-owned channels, according to Verizon, which has more than 4.
In November, 2. Content makers typically ask distributors to pay more to carry their TV channels, while distributors try to keep costs low to compete with cheaper online streaming options, such as Netflix, Hulu, and Sling TV.
The fee disputes have become more contentious in recent years as consumers get more options to access programming, said Bloomberg analyst Geetha Ranganathan. There have been such blackouts in , according to the American Television Alliance , which represents the interests of such content distributors as Verizon, Spectrum, Dish, and CenturyLink.
Content owners such as Disney earn most of their media network revenue from fees paid by distributors, known as affiliate fees.
Disney is one of the most exposed to affiliate fees because of the enormous amount that ESPN collects, Ranganathan said. Meanwhile, distributors such as Verizon are making much smaller profit margins on their video products compared with their broadband services, Ranganathan said.
This dispute comes as Disney prepares to launch its own direct-to-consumer streaming service in These fee disputes usually come down to the wire but are resolved most of the time, she added.
Despite what you may be hearing from Disney, we have been negotiating a renewal agreement to keep their networks, which include those from Disney and ESPN, as well as ABC affiliates in Philadelphia and New York, in our lineup.