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 The revamped Custom TV now offers a choice of one of two packages
with over 100 channels and three optional genre-specific packs,
instead of a slim offering of 36 channels plus numerous
genre-specific add-ons.
The move to expand the offering was not in response to objections
from content partners but based on customer feedback, a Verizon
spokesman said.
The first package, named "Essentials," has over 190 channels,
including the big four U.S. networks - Disney's ABC, CBS, Fox and
NBC. It also includes Discovery Channel and AMC with no sports
offerings.
The second package, "Sports & more," has over 160 channels,
including ESPN and regional sports, plus non-sports channels such as
the Cartoon Network.
In April last year, Verizon repackaged the traditional pay-TV bundle
and created a stir with some programmers by moving channels
traditionally prevalent in pay-TV base packages - such as ESPN, a
unit of Walt Disney Co and Comcast Corp division NBC Universal's USA
- out of a base tier into optional genre-specific add-on packs such
as sports and entertainment.
ESPN has sued Verizon, alleging a breach of contract, while
Twenty-First Century Fox and NBC Universal have said the Custom TV
offering violates their contractual obligations.
ESPN, FOX and NBC could not be reached immediately for comment.
The offering now costs $69.99, along with FiOS Internet and digital
voice services and three genre-specific add-on packages with movie,
family and global sports channels for $6 each. The first Custom TV
iteration started at $65 a month for broadband service, 36 fixed
basic channels and two genre-based channel packs, from a choice of
seven for $10 each.
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The growing popularity of online video services such as Netflix Inc
has put pressure on pay TV providers to innovate.
Last month, Verizon's Chief Financial Officer Fran Shammo declined
to comment on the ESPN lawsuit on an earnings call with investors,
but said customers "don't want to have to pay for bundles that they
never use."
"We will refresh (Custom TV) here in the short term to be in
compliance with the contractual arrangements," he added.
Compared to pay-TV giants AT&T Inc with its DirecTV acquisition last
year and Comcast, FiOS has a small market in 12 states and
Washington, D.C., with 5.8 million video customers as of the end of
2015.
(Editing by Lisa Shumaker and Bernadette Baum)
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