Verizon to refund customers in Boston and Pittsburgh for TV channel losses
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Verizon on Friday offered to refund millions of dollars to cable TV customers in the Boston and Pittsburgh markets who've been without certain channels for over a month, including those carrying NFL football, due to a carriage dispute with Cox Media Group.
Why it matters: This comes one week after Cox accused Verizon of pocketing customer fees, and days after Axios began asking questions.
Catch up quick: Verizon FIOS customers in the Boston and Providence, R.I. markets lost access to their local Fox affiliate on Dec. 15, including the broadcasts of two New England Patriots football games. The channel also will broadcast this weekend's NFC championship game, the winner of which may play New England in the Super Bowl.
- Pittsburgh customers lost access to the local NBC affiliate, which soon will carry the Winter Olympics.
- The estimated number of impacted customers is over 300,000, with the average monthly "cost" per subscriber to those channels coming out to a bit more than $5.
Behind the scenes: Verizon didn't automatically refund customers, instead only providing credits to those who asked. As such, it held onto the difference.
- There also doesn't appear to be much progress made in the dispute, with each side digging in its heels — with Verizon arguing that Cox is asking for exorbitant cost increases.
Driving the news: Verizon on Friday said that it will offer credits of $10.99 to each affected subscriber, although still won't make those credits automatic.
- That figure was picked to cover the monthly cost of a replacement streaming service like Fox One or Peacock.
Per a Verizon spokesperson:
"We are issuing a credit for $10.99, which will cover the cost of other platforms and services where luckily, the most valued content on these stations is available. Customers will receive communications later next week or can call-in or go to their account in the myVerizon app or at Verizon.com to easily redeem."
Disclosure: Axios is owned by Cox Enterprises, which also has a minority ownership in Cox Media Group.
