Verizon Signs Agreement With Showtime Networks for Premium Movie Services

NEW YORK - Verizon today announced a long-term affiliation agreement with Showtime Networks Inc. for its premium movie services. Under the agreement, Verizon will carry 11 Showtime Networks channels on Verizon FiOS TV when it launches later this year. The programming includes Showtime, The Movie Channel and Flix brands plus high definition and video-on-demand programming.

"We are pleased to add another premium-content provider to our growing list of programming partners. Our future customers will enjoy Showtime and its slate of theatrical and original movies in addition to its increasingly popular series," said Terry Denson, vice president of programming and marketing for Verizon FiOS TV.

Showtime Networks Executive Vice President Mark Greenberg said, "We are thrilled to sign this agreement with Verizon, which we believe will soon become a significant distributor of television programming. Verizon is poised to enhance its already sterling reputation with consumers by providing them with television services on its all-fiber network. Through this deal, not only will Showtime Networks services enjoy greater exposure, but Verizon will also be able to offer its customers the programming that they want at a reasonable price -- making it a winning proposition for both companies, and most importantly, for the consumer."

Showtime Networks offers consumers a variety of programming including feature films and original programming. Greenberg said the Verizon agreement dovetails with Showtime Networks' Big Digital plan, which encourages the network's distribution partners to offer a variety of Showtime Network services at a consumer-friendly price.

The agreement includes the channels Showtime, Showtime Too, Showtime Showcase, Showtime Beyond, Showtime Extreme, Showtime Women, Showtime Next, Showtime Family Zone, The Movie Channel, TMC xtra, and Flix. Also included are Showtime HD and The Movie Channel HD, which will be available free to Showtime and The Movie Channel subscribers as part of Verizon's extensive line-up of HD programming. Showtime subscribers will also receive Showtime On Demand and The Movie Channel On Demand, together televising 150 hours of Hollywood movies and Showtime original programming a month, up to 25 percent of which will change weekly.

Verizon FiOS TV will offer customers a competitive alternative to cable or satellite. In addition to the Showtime channels, FiOS TV will also deliver hundreds of other digital video channels, high-definition programming, video-on-demand content, music channels, an interactive programming guide and other customer-friendly features via the company's fiber-to-the-premises (FTTP) broadband network. Verizon is already constructing FTTP networks in half the states where it offers landline communications service.

Customers will be able to buy FiOS TV as a stand-alone service or packaged with voice and FiOS high-speed data services, which are already available in some areas

Terms of the agreement were not disclosed.

Showtime Networks Inc. (SNI), which is a wholly owned subsidiary of Viacom Inc., owns the premium television networks SHOWTIME®, THE MOVIE CHANNEL and FLIX®, as well as the multiplex channels SHOWTIME® TOO, SHOWTIME® SHOWCASE, SHOWTIME EXTREME®, SHOWTIME BEYOND®, SHOWTIME NEXT®, SHOWTIME WOMEN®, SHOWTIME FAMILYZONE® and TMC xtra. SNI also offers SHOWTIME HD®, THE MOVIE CHANNEL HD®, SHOWTIME ON DEMAND®, THE MOVIE CHANNEL ON DEMAND and FLIX ON DEMAND. SNI operates and manages the premium television network SUNDANCE CHANNEL®, which is a venture between NBC Universal, Robert Redford, and Showtime Networks Inc. All SNI feeds provide enhanced sound using Dolby Digital 5.1. SNI markets and distributes sports and entertainment events for exhibition to subscribers on a pay-per-view basis through SHOWTIME® PPV. Additionally, the advertiser-supported television network SHOWTIME is available in Turkey through a joint venture with UK-based Zone Vision.

With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. Verizon has a diverse work force of more than 210,000 in four business units: Domestic Telecom serves customers based in 29 states with wireline telecommunications services, including broadband and other services. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 43.8 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.