• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly

2

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

3

After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history

1

MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly

2

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

3

After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
Tech

Verizon’s new FiOS packages aren’t an unbundling. They’re a re-bundling.

By
Peter Suciu
Peter Suciu
Down Arrow Button Icon
By
Peter Suciu
Peter Suciu
Down Arrow Button Icon
April 24, 2015, 10:49 AM ET
Family watching television in living room
Family watching television in living roomPhotograph by Robert Daly — Getty Images
Add Fortune on Google for similar content.

Last week, Verizon Communications announced that its FiOS service would be available in smaller packages that seem to break the traditional pay-TV bundle. Beginning this month subscribers will be able to sign up for a slim package of TV channels that will include broadcast networks such as ABC and Fox along with basic cable fare such as CNN and AMC. The cheapest plan would be offered for $55 a month and will include two packs. Additional packages, which could include around 10 to 17 channels, would be available for around $10 extra a month.

These “channel packs” would cover genres such as sports, lifestyle and kids. But more importantly, they could address what has been pay TVs biggest issue—the substantial monthly charge for what seems to the average consumer like countless unwatched channels.

According to Nielsen’s Advertising & Audience Report, which was released last spring, American pay TV viewers have, on average, 189 channels—yet most people watch just 17 of them. In fact last year’s report showed that the number of channels available to consumers has steadily increased while the number of channels watched on average largely stayed consistent.

Verizon’s (VZ) attempt isn’t exactly an “unbundling” of pay-TV channels. Look at it as more of a “re-bundling.”

“With this development we’re redefining what unbundling means,” says Greg Ireland, research director for multiscreen video at IDC. “Verizon is still bundling channels and offering traditional tiers but they’re doing it in creative flexible ways—with these so-called ‘skinny bundles.'”

This could be an interim step to truly à la carte offerings that let consumers pick, and thus pay for, only the channels they want to view. However, the content providers may not be interested in playing along.

Disney (DIS), which owns ESPN, has already fired back, suggesting that such a move would violate its agreements with Verizon. ESPN, which has defended bundles as a policy priority, is currently one of the highest priced channels—charging around $6 a month to pay-TV services, while many channels average less than a $1.50 a month.

“Media reports about Verizon’s new contemplated bundles describe packages that would not be authorized by our existing agreements,” the company said in a statement. “Among other issues, our contracts clearly provide that neither ESPN nor ESPN2 may be distributed in a separate sports package.”

Disney essentially mandates that those channels must be carried on basic tiers, which is in contrast to Verizon’s perspective to put ESPN and ESPN2 in the sports bundle.

“This is a pretty meaty argument here,” says Erik Brannon, senior analyst for U.S. television at IHS Technology. “This may not be easily resolved and could lead to a standoff between the pay TV service and Disney, and from there it could be end up as a court battle. Or else Verizon backs down, because there is no reason for Disney to back down on this one.”

Even before it goes to the courts, the consumer may still end up losing.

“The gist of this is that consumers clearly want a skinnier, and cheaper, bundle and more choice, but the pay-TV channels, like ESPN, are not happy about it,” says Joel Espelien, senior analyst at The Diffusion Group. “In particular such a model will drive a wedge between consumers who don’t watch sports—and would pay less under this scenario—and those who do watch sports, who would pay more because the cost of sports would be spread over fewer households.”

The unbundling of channels could also pose a real danger for diversity on TV.

“Each channel group supports lower tier channels,” Brannon adds. “There is a ‘low rent’ of subscriber spectrum for some specialized channels, and right now the macro bundle keeps these specialized channels afloat.”

About the Author
By Peter Suciu
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

usa
AIearnings
Why IBM just suffered its worst stock crash of all time—and what it says about the market’s two bubbles
By Nick LichtenbergJuly 15, 2026
1 hour ago
mark
LawSocial Media
YouTube appeals verdict, argues it isn’t a social media platform
By Kaitlyn Huamani and The Associated PressJuly 15, 2026
1 hour ago
A woman at a police commission meeting stands behind a podium speaking animatedly.
North AmericaPrivacy
LAPD was one of Flock Safety’s biggest government customers. Now it’s renegotiating its partnership over ‘serious concerns around civil liberties’
By Sasha RogelbergJuly 15, 2026
1 hour ago
OpenAI wants its speaker to feel alive. Apple says it’s a stolen idea
AIOpenAI
OpenAI wants its speaker to feel alive. Apple says it’s a stolen idea
By Marco Quiroz-GutierrezJuly 15, 2026
2 hours ago
Murati’s Thinking Machines releases first AI model for broad use
AIMira Murati
Murati’s Thinking Machines releases first AI model for broad use
By Shirin Ghaffary and BloombergJuly 15, 2026
2 hours ago
Job interview in office
SuccessThe Interview Playbook
Bending Spoons only hired 0.04% from its 800,000 job applications last year—its CEO says its cutthroat hiring process is unlike ‘useless’ interviews
By Emma BurleighJuly 15, 2026
6 hours ago

Most Popular

MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
Newsletters
MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
By Sydney LakeJuly 14, 2026
1 day ago
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
Law
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
By Barbara Ortutay, Alexandra Olson and The Associated PressJuly 15, 2026
8 hours ago
After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
North America
After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
By Marco Quiroz-GutierrezJuly 14, 2026
1 day ago
Jamie Dimon understands why people are anti-rich: 'We have, in fact, left the lower-income folks behind' and 'that's kind of annoying'
Economy
Jamie Dimon understands why people are anti-rich: 'We have, in fact, left the lower-income folks behind' and 'that's kind of annoying'
By Eleanor PringleJuly 15, 2026
10 hours ago
Current price of oil as of July 15, 2026
Personal Finance
Current price of oil as of July 15, 2026
By Joseph HostetlerJuly 15, 2026
10 hours ago
Current price of gold as of July 14, 2026
Personal Finance
Current price of gold as of July 14, 2026
By Danny BakstJuly 14, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.