Disney, Cable Industry Shoot Down a la Carte

WASHINGTON (Cox News Service) – The cable industry joined with media giant Walt Disney on Wednesday to call attention to what they described as flaws in a recent federal study that found consumers would be better off paying only for the cable channels they want. Cable operators and Disney said the evidence actually shows that an “a la carte” pricing system would drive up monthly subscription costs and diminish programming choices for most people. They pointed to the experience of the Disney Channel, which originally was sold as a premium channel. Despite its family-friendly programming, the channel struggled financially until cable operators included it in a bundle of channels. “We've been to a la carte; we know it doesn't work,” said Preston Padden, executive vice president for Disney, majority owner of sports network ESPN. At a briefing for reporters, Padden said that as part of an “expanded-basic” package, the Disney Channel now reaches 87 million homes and generates enough advertising revenue to pay for quality programming. Disney released its study, along with a similar report prepared for the National Cable and Telecommunications Association. The reports may increase tensions between the industry and Federal Communications Commission Chairman Kevin Martin, who last month released the report that said a la carte pricing would allow a subscriber to get as many as 20 channels without increasing monthly costs.