Verizon Gets Third Of FiOS TV Revs From 'Skinny Bundles'

Verizon now says one third of revenue from its FiOS Video service comes from its so-called “skinny bundle” -- its Custom TV package that started up last April.

Verizon didn’t go into details in its financial release for the fourth-quarter 2015. But overall sales at the company's FiOS operations for the fourth quarter 2015 -- which include its FiOS Internet, FiOS Video, and FiOS Digital Voice phone service -- rose 6.8% to $3.53 billion.

Last year, Verizon offered up its Custom TV package -- a slimmed down TV package of around 50 channels. Verizon’s bigger FiOS packages -- more of a traditional pay TV provider service -- can contain 250 to 450 channels.

Verizon drew the anger from one big cable TV program network, ESPN, which filed a lawsuit against Verizon saying the telecommunications company had breached its distribution agreement.

Smaller packages of TV networks -- skinny bundles -- from cable, satellite or telecom pay TV providers, or other companies typically look to make sports and other networks extra paid options for customers to purchase.

Overall, Verizon says for the fourth-quarter 2015, there was a big slowdown in the overall FiOS Video service -- just adding 20,000 subscribers down from 116,000 in the fourth quarter 2012.

Verizon now has a total of 5.8 million FiOS Video service subscribers at the end of 2015, a 3.2% increase from the same period a year before when it was 5.6 million. This level gives Verizon a 35.3% penetration of 16.5 million homes capable of getting the FiOS Video service.

Verizon’s FiOS Internet service is at 7.0 million, a gain of 6.3%; and its FiOS Digital Voice phone service is at 4.8 million, up 3.3%.

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