[opendtv] Re: Viewers File Suit Over Bundling

"business judgement rule" will result in quick dismissal; no trial needed,
hell, no summary judgment needed, it can be dismissed at the initial 12b
motions stage. This is actually politics masquerading as a meritless
lawsuit.  

And, lest one forget, I think ala carte is a good idea, at least for "the
horses": cable subscribers. Tt destroys the "gatekeeper" model of U.S. cable
systems, and it will likely prevent or minimize the future development of
new national cable networks.

Most of the defendants named have little or nothing to do with cable
distribution: they're suing the contracts between the programmers and the
distros.  Not being a party to the contract, they need to attack it on
"public policy" grounds, but all the public policies are against them.  

John Willkie

-----Mensaje original-----
De: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] En
nombre de Craig Birkmaier
Enviado el: Monday, September 24, 2007 6:14 PM
Para: OpenDTV Mail List
Asunto: [opendtv] Viewers File Suit Over Bundling

http://www.broadcastingcable.com/article/CA6480856.html?display=Breaking+New
s&referral=SUPP&nid=2228

Viewers File Suit Over Bundling

By John Eggerton -- Broadcasting & Cable, 9/24/2007

Some cable subscribers are suing major cable programmers and 
operators to get their programming a la carte, as well as for 
millions of dollars in damages.

The multimillion-dollar class-action suit, filed by veteran antitrust 
attorney Maxwell Blecher on behalf of 14 cable and satellite 
subscribers from a variety of cities, says the companies violate 
antitrust laws by bundling programming in expanded basic tiers. The 
plaintiffs asked the federal district court in Los Angeles to stop 
the firms from "bundling expanded basic-cable channels and ordering 
defendant cable providers and direct-broadcast satellite providers to 
notify their subscribers that they each can purchase 'a la carte' 
[separately] except for 'basic cable.'"

That basic-cable caveat covers the lifeline basic package that 
includes the TV stations cable must carry per government mandate. The 
subscribers say they have been injured because they have been 
"deprived of choice, have been required to purchase product they do 
not want and have paid inflated prices."

The suit seeks treble damages, citing the alleged antitrust 
violations and arguing that "contracts between the programmer 
defendants and the cable and direct-broadcast satellite providers 
constitute a combination among and between the named defendants to 
monopolize trade and commerce in the relevant product market," in 
violation of the Sherman Act. It also alleges restraint of trade.

National Cable & Telecommunications Association spokesperson Joy Sims 
says the group's view of a la carte hasn't changed. "Several 
government and private studies have shown that required a la carte 
would lessen programming choice, decrease diversity in programming 
and raise prices for most cable customers," she said.

The suit names NBC Universal, Viacom, Disney, Fox, Time Warner, 
Comcast, Cox Communications, DirecTV, EchoStar Communications, 
Charter Communications and Cablevision Systems.

 
 
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