US sports broadcaster ESPN has stepped up its battle with Verizon over its new ‘Custom TV’ programming package by suing the telecommunications company, which has signed pay-television broadcaster CBS Sports Network as a new partner for the service.
The latest development comes after the Fox Sports division of the Fox network and NBC Sports division of media company NBCUniversal last week joined ESPN in disputing the Custom TV service.
Under Verizon’s new payment planning structure for its FiOS TV pay-television service, which launched on April 19, the telco launched a FiOS plan that starts at $55 (€51) a month for a basic tier of 35 channels plus two themed channel packs.
ESPN hit out after its ESPN, ESPN2 and ESPNU channels were included in a separate sports pack, with customers afforded the option of adding additional packs for $10 each. The USA Today newspaper said ESPN has now asked a New York state judge to prevent Verizon from offering the new plan, accusing it of “breach of contract”.
In its court filing Monday, ESPN asked the judge to enforce the current contract and to prevent Verizon from "unfairly depriving (ESPN) of the benefit of its bargain" and to assess damages of $500,000 or more.
"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," ESPN spokeswoman Katina Arnold told USA Today. "We simply ask that Verizon abide by the terms of our contracts."
Arnold added that confidentiality agreements prevent ESPN from elaborating on how Verizon's new service breaches their contracts.
Responding to the lawsuit, Verizon said: “Consumers have spoken loud and clear that they want choice, and the industry should be focused on giving consumers what they want. We are well within our rights under our agreements to offer customers these choices.”
ESPN’s action came on the same day as Verizon said CBS Sports Network will join the Sports Channel Pack on the Custom TV lineup from May 1.
CBS Sports Network televises nearly 600 live events and over 3,000 hours of live programming per year showcasing an array of college American football and basketball, as well as professional sports. The network provides extensive shoulder programming around CBS Sports’ championship events, including the NFL’s Super Bowl and golf’s Masters and PGA Championship.
Ray Hopkins, president of television networks distribution for CBS Corporation, said: “We are confident that our expanding lineup of premier live programming will be a favourite among Verizon’s sports fans and that this new option will help continue grow our distribution.”