Verizon has dropped Starz from its pay television platform Fios TV after the two companies were unable to come to terms on a new distribution agreement.
The multiplex network was removed from Fios TV throughout the country late Wednesday evening, leaving Fios TV customers unablel to watch programming from Starz and sister network Encore (now Starz Encore).
“Despite extensive efforts by Starz to reach a renewal agreement and preserve uninterrupted access for Verizon Fios customers, Verizon has chosen to remove Starz,” Alison Hoffman, the President of Starz Networks, said in a statement.
Hoffman accused Verizon of mischaracterizing Starz’s negotiating position and said the company remained prepared to reach an agreement restoring its programming.
Verizon offered a different account, saying Starz sought carriage rates that did not reflect current market conditions.
“While Verizon negotiated in good faith to ensure fair pricing for our customers, Starz insisted on rate terms that do not reflect current market conditions, particularly as their content is broadly available through direct-to-consumer streaming options like the standalone Starz app,” a Verizon spokesperson told reporters on Thursday.
The dispute had escalated publicly earlier Wednesday, when Starz warned customers its channels could be removed from Fios at 12 a.m. Eastern Time. Verizon at the time characterized the warning as a pressure tactic intended to force the company to accept higher rates.
Fios TV customers have a number of other options to watch programming from Starz and Starz Encore: The company offers its own direct-to-consumer streaming service that unlocks the full Starz movie and TV show library, and a number of third parties like Amazon’s Prime Video Channels and The Roku Channel also sell Starz through their platforms.
It wasn’t immediately known how many customers of Fios TV subscribe to Starz. Verizon has around 2.4 million traditional pay TV customers; in most parts of the country, it markets YouTube TV — which still offers Starz — as an alternative for customers who want broadband service from Verizon but not traditional pay TV.
Over the summer, Starz reported north of 17 million global customers, including pay TV subscribers and those who purchase streaming access directly from the company.
