Disney Defends Bundling as FCC Reviews Totality of Circumstances Test
The FCC should keep its presumption that bundling doesn't violate antitrust laws and in fact is a pro-competitive, pro-consumer practice, Disney executives told FCC officials in a series of meetings about the agency's examination of the totality of circumstances test…
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for good-faith negotiating, said an ex parte filing Friday in docket 15-216. Its arguments responded to issues raised by some distributors about inclusion of stations and affiliated programming in retransmission consent talks. Disney said in the meetings it also took issue with an analysis by Columbia University Professor Michael Riordan (see 1604280058), saying the conclusions depend heavily on assumed valuations, those conclusions change as the valuations do, and it doesn't reflect market realities of bilateral negotiations for content. Disney said it also pointed to the growing video content market as additional evidence of why the FCC shouldn't change its bundling presumption. The meetings with Disney Vice President-Government Relations Susan Fox included Media Bureau Chief Bill Lake and Commissioners Ajit Pai and Jessica Rosenworcel. In a separate filing Friday in the docket, WTA recapped a meeting with its members and Commissioner Mignon Clyburn Chief of Staff David Grossman, to say stations shouldn't be allowed to demand compensation for retransmission consent for consumers or multichannel video programming distributors outside the reach of free over-the-air broadcast signals. WTA representatives discussed the possibility of requiring MVPDs to offer networks on an a la carte basis and backed an exemption in the set-top box NPRM for rural phone companies and small providers. The association's representatives said the proposed set-top rules "are likely to be the straw that breaks the camel's back for many small providers" since they would bring additional service costs related to dealing with problems of customers' off-the-shelf gear.