This customization comes at a price of $54.99. It does come with its extra fees as well. Up to a $150 set-up charge, monthly fees, that include, $5.89 Regional Sports Network Fee, $2.99 Broadcast Fee, $0.99 FDV Administration Fee, $10 router fee, $12 HD STB fee. This channel customization has come under scrutiny as ongoing litigation with the Walt Disney Company's ESPN division, which sued Verizon last year claiming the Custom TV bundling strategy violated the media company's carriage agreement with Verizon. Verizon Fios Custom Executives for ESPN, which was put in the optional Sports pack, ESPN was unhappy that their channels were not available in a base tier distributed to every home. Custom TV. Although this isn’t the a la’ carte option many video consumers want, it is moving things in the right direction for future channel unbundling, a la carte” alternative wherein individual channels are made available for purchase, 92 percent of consumers said that they would be at least “somewhat likely” to switch to a full a la carte option (Eggerton, 2015). Those abandoning pay-TV packages fall into three main groups: cord-nevers, cord-cutters, and cord-shavers. Whereas video streaming services have found favor with younger viewers in particular, an increasing portion of older subscribers, leaving behind their pay-TV packages, while many Americans are ditching their cable service altogether, even more are scaling back or shaving current services, selecting cheaper TV bundles while spending more on streaming video services. The study, done by Digitalsmiths, a subsidiary of TiVo, found that in the first quarter of this 2015, 45.2 percent reduced their cable or satellite service while only 8.2 percent cut their service completely. And new customers are increasingly opting for broadband-only packages, he added. The real threat to the pay TV industry may not be the actual cord cutting of current subscribers, it’s lack of new customer that may not care to subscribe in the first place, similar to the trend facing landline telephones. 2. Increasing prices The average monthly price of service increased by 5.1 percent over the 12 months ending January 1, 2013, to $64.41, compared to an annual increase of 1.6 percent in the Consumer Price Index (CPI). The most expensive programming channel in the pay-TV bundle is ESPN. The average price per channel is $.50; ESPN is close to $20. While ESPN is now one of the most widely viewed television networks, it was not always.40 When ESPN first
This customization comes at a price of $54.99. It does come with its extra fees as well. Up to a $150 set-up charge, monthly fees, that include, $5.89 Regional Sports Network Fee, $2.99 Broadcast Fee, $0.99 FDV Administration Fee, $10 router fee, $12 HD STB fee. This channel customization has come under scrutiny as ongoing litigation with the Walt Disney Company's ESPN division, which sued Verizon last year claiming the Custom TV bundling strategy violated the media company's carriage agreement with Verizon. Verizon Fios Custom Executives for ESPN, which was put in the optional Sports pack, ESPN was unhappy that their channels were not available in a base tier distributed to every home. Custom TV. Although this isn’t the a la’ carte option many video consumers want, it is moving things in the right direction for future channel unbundling, a la carte” alternative wherein individual channels are made available for purchase, 92 percent of consumers said that they would be at least “somewhat likely” to switch to a full a la carte option (Eggerton, 2015). Those abandoning pay-TV packages fall into three main groups: cord-nevers, cord-cutters, and cord-shavers. Whereas video streaming services have found favor with younger viewers in particular, an increasing portion of older subscribers, leaving behind their pay-TV packages, while many Americans are ditching their cable service altogether, even more are scaling back or shaving current services, selecting cheaper TV bundles while spending more on streaming video services. The study, done by Digitalsmiths, a subsidiary of TiVo, found that in the first quarter of this 2015, 45.2 percent reduced their cable or satellite service while only 8.2 percent cut their service completely. And new customers are increasingly opting for broadband-only packages, he added. The real threat to the pay TV industry may not be the actual cord cutting of current subscribers, it’s lack of new customer that may not care to subscribe in the first place, similar to the trend facing landline telephones. 2. Increasing prices The average monthly price of service increased by 5.1 percent over the 12 months ending January 1, 2013, to $64.41, compared to an annual increase of 1.6 percent in the Consumer Price Index (CPI). The most expensive programming channel in the pay-TV bundle is ESPN. The average price per channel is $.50; ESPN is close to $20. While ESPN is now one of the most widely viewed television networks, it was not always.40 When ESPN first