• by David Kaplan , April 27, 2005

As part of its plans to offer high-definition and video-on-demand programming through its fiber optic system by the second half of 2005, Verizon has struck a long-term affiliation agreement with Showtime Networks for its movie services.

Verizon is currently building its fiber optic system in 14 states--Verizon currently has landline service in about 30 states--and is "talking to every cable network you can think of" in order to have programming ready, said Sharon Cohen-Hagar, a Verizon spokeswoman. The fiber optic system is called FiOS.

Aside from Showtime, Verizon has similar agreements with Starz, A&E Networks, Discovery Networks, NBC Universal Cable, and others.

Under the agreement with Showtime, Verizon will carry 11 Showtime Networks channels on Verizon FiOS TV when it launches later this year. The programming includes Showtime, and its The Movie Channel and Flix brands, plus high-definition and video-on-demand programming, she said.

Verizon FiOS TV is positioning itself as an alternative to cable or satellite. But locking in cable nets is only the first step.

"We still will have to obtain cable franchises and licenses before we can operate, but we're moving ahead and hope to have the programming available in selected markets"--Cohen-Hagar wouldn't say how many of the 14--"by year's end."