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The Current The Mentalist season (2012-2013) not on Free on Demand.
Is this some arbitrary decision made by FIOS or some contract problem with CBS?
On Demand offerings are controlled by the networks, not Verizon.
This isn't a Verizon issue -- for some reason The Mentalist isn't available On Demand on any provider that I know of.
It is definitely a licensing issue.
The networks withhold certain shows from On Demand so that they can charge higher fees for the show when it goes into syndication. CBS doesn't have Person of Interest On Demand either.