Business

ESPN Suing Verizon Over Unbundling of its Sports Channel

Published

11 years ago

April 28, 2015

This Sept. 16, 2013 photo shows the ESPN logo prior to an NFL football game between the Cincinnati Bengals and the Pittsburgh Steelers, in Cincinnati. ESPN on Monday, April 27, 2015 filed a lawsuit against Verizon in an escalating clash over how the popular sports channel is being sold in a discounted pay-TV package. (AP Photo/David Kohl)

MICHAEL LIEDTKE, AP Business Writer

ESPN is suing Verizon in an escalating clash over how the popular sports channel is being sold in a discounted pay-TV package.

The complaint filed Monday in New York’s state Supreme Court alleges Verizon is breaking its contract with ESPN, owned by Walt Disney Co., by unbundling the sports channel from the main programming line-up of Verizon’s FiOS TV.

The legal showdown could have ripple effects on how other pay-TV programming is packaged. Cable and satellite services are scrambling to retain subscribers as the advent of Internet video spawns new and less expensive ways to stay entertained and informed.

Verizon is allowing customers to subscribe to a bare-bones package of 35 channels for $55 per month, with the option of adding other two other tiers of programming such as a sports package that includes ESPN. The streamlined packages are meant to appeal to budget-minded consumers weary of paying for dozens of TV channels that they rarely watch.

Pay-TV providers such as Verizon are under pressure to give subscribers cheaper and more flexible choices as they face intensifying competition from Netflix, Hulu, Amazon.com and other online services that stream TV series and movies over high-speed Internet connections.

Those market forces prompted Time Warner Inc.’s HBO, a long-time staple in pay-TV lineups, to recently begin selling an Internet-only service for $15 per month.

“Verizon’s current skirmish speaks to the trouble distributors will have in creating a slimmer package that is attractive both from an economic and content perspective,” MoffettNathanson Research wrote in an analysis Monday.

ESPN is fighting Verizon’s discounted “custom TV” package because it gives subscribers the option of bypassing the sports channel in their programming selections. That violates pay-TV requirements stipulating that ESPN be included in the main bundle of programming, according to ESPN. Despite the alleged breach of contract, ESPN hasn’t yet pulled its channel from the sports pack that Verizon is selling as part of its discounted service.

New York-based Verizon Communications Inc. denies its new options break its ESPN contract. “Consumers have spoken loud and clear that they want choice, and the industry should be focused on giving consumers what they want,” the company said in response to ESPN’s lawsuit.

In its statement, ESPN said it favors innovation as long as it doesn’t violate existing agreements. The sports channel recently worked out a deal that enabled Dish TV’s Sling service to include ESPN and ESPN2 in an Internet video service that costs about $20 per month. ESPN is included in the main programming line-up of Sling, though.

While ESPN took Verizon to court, CBS Sports Network disclosed plans to join Verizon’s separate sports package beginning May 1.

Few details of ESPN’s claims against Verizon were available Monday because the material in the lawsuit is currently considered confidential.

ESPN is highly prized by pay-TV providers and advertisers because the channel has the rights to a variety of major professional and college sports that still command large audience who watch the programming live instead of on DVR recordings that let viewers skip the commercials.

The sports channel’s allure has established ESPN as the most expensive channel in basic pay-TV channels, based on estimates from data provider SNL Kagan. ESPN charges pay-TV distributors $6.61 per monthly subscriber compared to just $1.65 per subscriber for the second most expensive basic channel, TNT.

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AP Business Writer Tali Arbel in Washington contributed to this story.

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

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March 17, 2026

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As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC