Media companies attack Verizon?s new cable package

Disney, Fox, and NBCUniversal informed Verizon that they would not advertise the telecommunications company’s new cable package on their respective affiliate stations. The package, FiOS Custom TV, is largely a response to cord-cutters who rely on online streaming services, and it will allow customers greater control over the channels they pay for.

The New York Timesreports Verizon’s version of the media companies’ attack, as well as Verizon’s rationale for offering customers greater options:

A Verizon spokeswoman, Deidre Hart, said Disney told the company that it would not run ads for FiOS Custom TV on local stations, including WABC, A&E and ESPN Radio in New York and the ABC affiliate in Philadelphia. Likewise, Fox will not run the ad on its New York affiliate, WNYW, and on the sports cable channel YES, Ms. Hart said. The FiOS ad began airing on Tuesday on local broadcast stations.

“This anticompetitive tactic is only hurting consumers,” Ms. Hart said. “As we’ve been saying, FiOS Custom TV is a product consumers want, and it’s all about consumer choice. We believe we are allowed to offer consumers and small businesses this choice and flexibility under our existing contracts.”

Resistance to Verizon FiOS Promotion (New York Times, Apr. 23, 2015)