Sports programming channel ESPN recently issued a statement that its channels will not be part of Verizon's new channel packaging scheme. ESPN said that Verizon's new Custom TV bundle violates an agreement between the two companies.
A spokesperson from ESPN told Washington Post, "Media reports about Verizon's new contemplated bundles describes packages that would not be authorized by our agreements. Among other issues, our contracts clearly provide that neither ESPN nor ESPN2 may be distributed in a separate sports package."
Verizon's new Custom TV bundle is almost similar to an a la carte option. However, instead of letting its customers freely pick all the channels, Verizon will offer a pre-curated packages. Customers who will opt-in to this new package scheme will be given more than 35 fixed basic channels and an option to pick two genre-based bundles like sports or news channels, according to PC Magazine.
ESPN, along with other cable TV programmers such as HBO, recently decided to partner up with other companies like Apple and Sony in order to stream their content via the Internet rather than use the traditional method of cable TV.
In particular, ESPN came to an agreement that its programs and contents will be streamed via Sling TV. Dish Network owns and operate the Sling TV service. On the other hand, HBO has already partnered up with Apple and Cablevision and plans to launch its own Stand-alone streaming service known as HBO Now in the near future.
The recent shift to Internet streaming for the delivery of content usually offered through premium cable subscription has led telecom companies, like Verizon, to come up with better channel packaging alternatives in order to keep its customers from transferring to the newer medium.