ESPN isn’t a fan of Verizon’s new way of offering cable channels under its Fios TV service.
The sports network has sued Verizon for allegedly breaching its contract, which was earlier reported by CNBC.com. The report said the lawsuit was filed in the New York Supreme Court.
The dispute stems from Verizon’s recently unveiled “skinny bundle” option, which gives consumers the ability to choose specific packages of cable channels which can be swapped in and out every 30 days. The skinny bundle offers more flexibility than the standard cable bundle, which provides a large number of preset channels.
ESPN’s lawsuit represents the first sign of resistance by the content companies, which are dealing with a shifting viewing patterns as consumers increasingly opt to watch video online and on their own time. These viewers, known as cord-cutters since they’ve cut the cable TV part of their service, are forcing content companies to look at how they distribute their programming.
The sports-programming giant believes Verizon’s new bundle conflicts with their agreement.
“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,” said an ESPN spokeswoman in a statement. “We simply ask that Verizon abide by the terms of our contracts.”
Verizon defended its new bundle. “Consumers have spoken loud and clear that they want choice, and the industry should be focused on giving consumers what they want,” a company spokesman said in a statement. “We are well within our rights under our agreements to offer our customers these choices.”
The New York telecommunications giant has shown a willingness to explore different models as it too deals with customers abandoning traditional pay-TV service in lieu of online options