Disney, NCTA Refute FCC’s A La Carte Claims

It took a month but the NCTA and Disney have produced their own studies to counter FCC claims that a la carte makes the most economic sense for consumers. They say the FCC most recent FCC study disregards findings by numerous independent economists, fails to account for the impact on advertising revenues and ignores the value of bundling. The counter-reports have been filed as comments with the FCC.
At the briefing in D.C. today, according to B&C, Disney’s top lobbyist Preston Padden offered up the Disney Channel’s trajectory from premium a la carte channel to expanded basic cable as an example; Disney couldn’t top 30 percent as a pay channel but now reaches 87 million homes. As a result, Padden contends the network can spend more on programming. (Of course, the Disney Channel also can be an example for those who don’t want channels aimed at children and say they should have that choice.)
Another study is on the way from Viacom; an exec says the early results support the findings by NCTA and Disney. Press release.

Related: A La Carte Cable Gets The Nod From FCC; McCain Promises Legislation

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