By Thomas Gryta
Verizon Communications Inc. said Tuesday it believes it can
offer sports channel ESPN separately from its core package of
channels under a new plan that lets customers customize their
programming lineup.
The telecom giant's plans let people buy a slimmed down package
of basic channels, including local networks, and then add packs of
niche channels that cover areas like sports, entertainment and
news. Walt Disney Co.'s ESPN has objected to the move that
separates it from the core lineup, saying Verizon has violated
agreements between the companies.
Verizon Chief Financial Officer Fran Shammo said in an interview
that the company is moving forward with the plans and not looking
back.
"We have launched the product, we are not retracting it, and we
believe we are in our legal rights to launch it," he said.
The position puts Verizon at odds with a major programmer at a
time when the pay television industry and content companies are
experimenting with a variety of new approaches as viewers migrate
to the Internet. The steps are tentative thus far, as both sides
are wary of disrupting long-lucrative arrangements.
Verizon is a major provider of traditional pay TV via its FiOS
service and is working on an "over the top" service that will be
delivered primarily to mobile devices.
Write to Thomas Gryta at thomas.gryta@wsj.com
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