Other deals
Verizon Communications Inc. plans to aggressively target cable and satellite subscribers with three low-priced programming packages for its upcoming FiOS TV service, which the company plans to launch during the second half of 2005.
Industry sources said Verizon will attempt to woo customers with a $50-to-$55-per-month programming package that would include premium channels from Starz Entertainment Group and Showtime Networks Inc., along with more than 150 digital basic channels.
Sources said Verizon will also offer two lower-priced tiers — a lifeline video service which would only contain local broadcast channels, and a basic-programming tier which would feature traditional analog basic cable channels such as ESPN, MTV: Music Television, Cable News Network and USA Network.
Verizon spokesman Eric Rabe said the company will offer multiple programming tiers, but declined to confirm specific pricing or packaging offers.
"We hope to be more creative and, frankly, more user friendly on a lot of scores here," Rabe said when asked if Verizon planned to pursue unique packaging strategies with premium channels, compared to the way cable operators have traditionally packaged channels like Home Box Office and Showtime.
DEALS WITH150
A source said Verizon has reached distribution deals with programmers that would give the company more than 150 channels to market to subscribers. But Verizon has only announced a handful of programming deals for FiOS TV, most recently an agreement with Showtime Networks last week.
Verizon has also touted agreements with Starz Entertainment Group, NBC Universal Cable, A&E Television Networks, Court TV and, also last week, Varsity TV, Gospel Music Channel, Soundtrack Channel, MavTV and GolTV.
Sources said Verizon has also pitched HBO on the idea of joining Starz and Showtime channels in a widely distributed tier which would include digital-basic channels, but the telco and HBO haven't yet hammered out a deal. HBO declined to comment.
Officials at Starz and Showtime declined to discuss the terms of their agreements with Verizon, but Showtime executive vice president Mark Greenberg said he expected that his carriage deal would drive distribution for Showtime and the company's other channels, including The Movie Channel and Flix, plus HDTV and VOD programming.
"We are excited by the proposition that Showtime will reach a wider audience," Greenberg said.