ESPN filed a lawsuit Monday in New York Supreme Court against Verizon, claiming that Verizon’s new FiOS TV packages — which allow subscribers to purchase a basic set of channels starting at $55 per month, and add tiers of genre-based channels — are in breach of contract regarding ESPN distribution. While Verizon introduced the new packages to attract consumers looking for more flexibility, the company has met resistance from major players such as 21st Century Fox and NBCUniversal regarding current programming agreements.

“The issue of how channels are sold to subscribers has taken on greater urgency in the media industry as more consumers seek to lower monthly TV bills and are embracing streaming services such as Netflix and Hulu,” suggests The Wall Street Journal.

ESPN said in a statement that it is “at the forefront of embracing innovative ways to deliver high-quality content and value to consumers on multiple platforms, but that must be done in compliance with our agreements. We simply ask that Verizon abide by the terms of our contracts.”

While ESPN’s primary issue involves its content being featured in a separate add-on sports bundle, Verizon argues it is within its rights and has not violated terms of the distribution deal.

Verizon is also planning to launch an online video service, and the new FiOS packages could prove detrimental to its negotiations with programmers.

“Verizon’s current skirmish speaks to the trouble distributors will have in creating a slimmer package that is attractive, both from an economic and content perspective,” notes research firm MoffettNathanson. “We are not sure what is gained from going to war with their largest content providers.”