Verizon Fios Supply Chain Case Study

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One telecommunication leader is giving customers the option to customize the channel lineup to suit their individual entertainment needs. Verizon Fios Custom TV lets you choose types of channels in a way that cable never has. Instead of overpaying for hundreds of channels never watched, select what types of channels are included in the subscription. This new service debuted in the spring of 2014, allowing customers to essentially build their own channel lineup based on modular stacks of genre-themed program packages. According to Verizon website, the base package starts with 25 plus channels (FEB, 2016) and includes such popular networks as; NBC, FOX, CNN, HGTV, AMC, Food Network, WE TV, CBS, ABC, The CW, and PBS. Customers then pick two additional channel packages at no …show more content…
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,

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