ESPN, Verizon, Time Warner Cable and Comcast could help decide fate of TV

A duo of television stories could change the landscape of the medium this week as some big names jockey to be at the forefront of how we consume content in the future.

ESPN vs. Verizon (VZ):  First, in news you may have missed late Friday afternoon, Verizon announced a plan to break up traditional bundles on the popular FiOS TV service, allowing customers more choice in building their cable TV plans.

FiOS users would be able to buy a package of channels that includes local networks and some major cable networks. They would then have the option for addition clusters like kids channels and sports channels. And there’s the rub. Disney-owned (DIS) sports broadcasting juggernaut ESPN is NOT included in that core offering (it is, however, available in the addition sports package). ESPN says that is a violation of the contract it has with Verizon.

Yahoo Finance Editor in Chief Andy Serwer says this “a la carte” cable package is the future of the industry. “A la carte is probably going to be more expensive than the bundle...but you get exactly what you want.”

Media research firm SNL Kagan says ESPN accounts for the biggest chunk of your cable bill...by a long shot. According to their data, published in the Wall Street Journal last summer, the median cost of a channel on your cable bill is $0.14. ESPN costs $6.04. For those not inclined to watch sports it’s a big expense to pay for. It’s not that surprising then that it was left out of a discount core package.

Can the Walt Disney Company exert the kind of pressure to keep such slimmer, ESPN-free packages from being the norm? It’s a pretty key question that could reshape the television landscape in the next several years.

Comcast and Time Warner Cable push for approval The two biggest cable and broadband providers in the nation want to become one. Comcast and Time Warner Cable combine to provide more than 33 million households with television service. While the numbers are down a little amid the cord cutting craze, a combined company would dwarf the next largest cable company and almost equal DirecTV (DTV) and Dish (DISH) subscribers combined.

Reports suggest the Justice Department and the Federal Communications Commission (FCC) are a bit reticent about such a marriage; one that would, in theory, let the operators jack up prices, leaving consumer with little to no recourse.

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"Comcast said ‘we’re not in a monopoly situation because of TV’ but guess what, in terms of broadband they’ve got over 50% of the U.S. market and the Justice Department doesn’t like that,” says Serwer.

“Nobody watches TV,” says Tom Lydon of ETFTrends.com, citing his three teenagers and their penchant for watching content online. “It’s all about streaming...that’s really key and critical” with respect to the monopoly argument.

This week Comcast and Time Warner Cable are said to be meeting with Justice Department officials to discuss potential changes to the proposed merger that would help gain the approvals needed.

The decisions surrounding the deal could have far reaching implications to the future of television and the internet.

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