NCTA, Disney Studies Take Issue With FCC a la Carte Report

Mar 15, 2006  •  Post A Comment

The National Cable & Telecommunications Association and The Walt Disney Co. released new studies Wednesday alleging that a February report by the Federal Communications Commission on a la carte pricing for cable TV is flawed.

The FCC report, ordered by Chairman Kevin Martin, contradicted a study issued by the agency during the tenure of his predecessor, Michael Powell, that said a la carte would hurt consumers. The new industry studies insist that it is Mr. Martin’s report that has the wrong conclusion.

“The first report submitted to Congress had it right,” Dan Brenner, NCTA senior VP for law and regulatory policy, said at a joint press conference to release the findings. The NCTA and Disney each sponsored a study.

“Despite the superficial appeal of a la carte, the facts overwhelmingly demonstrate that consumers would have to pay more for less,” added Preston Padden, executive VP of worldwide government relations for Disney.

An FCC spokesperson said, “The FCC’s recent report does not conclude that every consumer would pay less but rather, under a la carte, consumers could benefit by having the option to pay less. We stand by the report’s analysis that consumers could benefit from increased choice and control.”