ESPN Warns Fios Customers They Risk Losing New Year's Bowl Games Access
ESPN emailed Fios TV customers Wednesday warning they risk losing access to the channel if Disney and Verizon can't come to terms on a new contract when the current one expires New Year's Eve.
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“The New Year’s Day Bowl Games are almost here,” said ESPN, urging customers to “take action now” by phoning Verizon and telling the MVPD to “keep the networks you are paying for.” Customers who make the toll-free call hear a roughly 55-second recorded announcement saying Verizon has to periodically update renewal agreements with content providers to be able to offer programs for viewing.
“Despite what you may be hearing from Disney, we have been negotiating a renewal agreement to keep their network, which includes ESPN, in our lineup,” says the recording. “Disney is proposing that Verizon pay hundreds of millions more for its programming, and we are refusing to accept these increases in order to protect you." Disney has "rejected our offers," and "there’s a possibility" the impasse will continue when the contract expires Dec. 31 at 5 p.m. EST, it says. Expanded information on the Verizon website says that in addition to the proposed rate increase, Disney is demanding that Verizon also “include, and pay for, another regional sports channel, the ACC Network."
The rise in programming costs "is the biggest factor in higher TV bills and we are standing up to networks like Disney, refusing to accept these huge increases,” Verizon said. It gave Disney a “reasonable offer to continue providing you access to its networks,” but Disney declined, it said.
Disney's "proven history of providing extraordinary value to consumers and distributors is unmatched," emailed a spokesperson Wednesday. "Our negotiations continue in earnest and we remain optimistic that we can reach a deal.” Disney-watchers familiar with the impasse described the ESPN parent as committed to reaching a Verizon deal on terms consistent with those of other recent MVPD agreements, but said it felt obligated to inform Fios customers of the looming blackout, which would affect the Freeform channel and the ABC-owned stations in New York and Philadelphia, in addition to ESPN.
ESPN is scheduled to carry three New Year's Day bowl games -- Fiesta at 1 p.m. EST, Rose at 5 p.m. and Sugar at 8:45 p.m. ESPN also is scheduled to carry college football's national championship game Jan. 7 at 8 p.m.