A tip Disney executive told a
Congressional subcommittee Wednesday that a association does not need distributors to lift low-rated networks in sequence to benefit entrance to renouned ones. But a DirecTV executive pronounced there is an
element of bundling concerned in negotiations, including with invasion requirements.

“I’ve sealed 3 affidavits attesting to a fact that we do not occupy what is commonly
known as tying,” pronounced Ben Pyne, boss of tellurian placement during Disney Media Networks.

Without referring to Disney in particular, DirecTV Executive Vice President Mike Palkovic
said vast programmers offer a satellite user a singular cost for all of their channels (including internal stations). If it wanted to lift comparison ones, it would not be economical, he said.

“I consider that’s dictated … we finish adult with situations where even if we could emanate a package for consumers that was affordable, that usually had in that package enough
programming to support a cost indicate they would want, we’ll run afoul of invasion obligations in those agreements,” Palkovic told a subcommittee. “So we can do it, though we end
up possibly carrying to stop offering that package, or we have to compensate by a nose to a programmers for violating those terms.

“It’s not usually a restraining of all a channels. There [are]
penetration obligations on a some-more renouned channels that accumulate to a rest of a apartment of services. It’s a tough conditions currently to understanding with.”

The conference by a House Energy
Commerce subcommittee was directed during exploring reauthorization of legislation that impacts satellite operators DirecTV and Dish Network, though dealt with a accumulation of issues.

Amy Tykeson,
the CEO of a most smaller Oregon distributor BendBroadband, told a subcommittee that programmers are requiring operators to place networks on tiers that lift prices for customers. “I have
to put these channels in these wide-penetrated tiers, and business don’t wish them,” she said. “My packages are apropos approach too expensive, and it’s usually not satisfactory for my
customers.”  

As justification that is does not bundle, Pyne offering that 15% of wire systems usually lift ESPN and ESPN2, dual of Disney’s some-more renouned networks. (He might have
been referring usually to networks within a ESPN family, that also embody ESPNU and ESPN News, given a association also operates a Disney Channel, ABC Family and internal ABC stations.)