Verizon Signs Long-Term Deal With Starz Entertainment Group for Premium Movie Services

NEW YORK -- Verizon today announced a long-term affiliation agreement with Starz Entertainment Group LLC (SEG) for the SEG premium movie channels and services. Under the agreement, Verizon will be able to carry East and West Coast feeds of all 13 Starz Entertainment Group movie channels on Verizon FiOS TV when it launches later this year. The programming includes the flagship Starz and Encore brands, Starz On Demand and Starz HDTV.

Verizon will provide Starz On Demand, showcasing more than 100 movies-on-demand per month, and Starz HDTV at no additional charge for Starz subscribers.

"Consumers prefer a choice of uncut, commercial-free movies, so we are particularly pleased to be able to offer our future subscribers an impressive lineup of Hollywood movies including Starz On Demand and all of the Starz and Encore networks," said Terry Denson, vice president of marketing and programming for Verizon FiOS TV.

Edward Huguez, Starz Entertainment Group executive vice president of sales, said, "With blockbuster movies such as "The Incredibles," "The Aviator" and "National Treasure" coming exclusively to Starz Entertainment Group later this year, Verizon will be equipped to market terrific movie programming to movie-lovers in Verizon markets. As part of the service, these movies and more will be free to Starz on Demand viewers."

Verizon FiOS TV will offer customers a competitive alternative to cable or satellite. In addition to video on demand, FiOS TV will deliver hundreds of digital video channels, high-definition programming, music channels, an interactive programming guide and other customer-friendly features via the company's fiber-to-the-premises broadband network, now under construction in parts of 14 states. 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.

The affiliation agreement is the first that Verizon has signed with a premium pay-TV provider. Verizon is also negotiating with other premium services.

Starz On Demand provides free impulse viewing of Starz Entertainment Group movies with full DVD-like functionality as part of the monthly Starz subscription. Starz On Demand offers a steady supply of hit movies including, "Kill Bill: Vol. 2," "Hellboy," "Hidalgo," "Cold Mountain," "The Ladykillers," "The Lord of the Rings: The Return of the King" and "Van Helsing." Hollywood studios supplying films to Starz On Demand include Disney, Universal, Sony, MGM, Paramount, New Line, Revolution Studios and Miramax.

Terms of the agreement were not disclosed.

Starz Entertainment Group LLC (SEG) is the largest provider of premium movie services in the United States with approximately 173 million pay units. SEG offerings include the
Starz Encore Movie Pack with 13 digital movie channels and more than 750 movies per month, Starz HDTV, Starz On Demand®, and Starz Ticket, the first and only on-demand premium TV subscription service available on the broadband platform. Starz Entertainment Group is a wholly-owned subsidiary of Liberty Media Corporation (NYSE: L, LMCb), www.starz.com.

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.