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Introduction

Verizon’s new service doesn’t so much break the bundle, as it does create a new kind of channel bundling that offers customers more choice and flexibility in how they consume pay-TV and what they pay for it, and steers the market a little closer towards the long-standing consumer desire for a la carte pricing. If Verizon can successfully overcome the mounting objections from content providers that this new service violates existing contracts, it stands to set a precedent for others.

Highlights

  • Verizon is offering a unique, first-of-its-kind offering to its customers: the ability for customers to customize non-premium channels selected in their pay-TV packages.
  • A number of challenges to Verizon's success with Custom TV exist, particularly objections from content providers that this new plan violates existing contract licensing agreements as well as a price point for basic service that may not be sufficiently discounted to entice all the customers, and particularly the potential cord-cutters, that Verizon hopes to woo with Custom TV.

Features and Benefits

  • Understand what the new Custom TV offering is and how it benefits Verizon and its customers.
  • Learn what challenges Ovum believes exist that could moderate or thwart Verizon's success with its Custom TV offering.

Key questions answered

  • What is Custom TV and how does it differ from Verizon's traditional pay-TV bundles in price and concept?
  • How will Custom TV benefit Verizon and its customers and what challenges exist to its success?

Table of contents

Ovum view

  • Summary
  • Verizon is making it easier for customers to keep TV in the bundle
  • Smaller bundles are a key step towards more sophisticated personalization and more consumer-friendly plans
  • Content producers are crying foul, but the floodgates are open

Appendix

  • Further reading
  • Author

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