The Mercury News

Court rejects bundling lawsuit

Subscriber­s filed against Comcast, Time Warner

- By Joe Flint

The U. S. Supreme Court is in no hurry to address the issue of choice — at least when it comes to cable television.

On Monday, the high court declined to hear a class- action suit against several big media companies including Comcast, News Corp. and Time Warner over how they bundle their cable channels for sale to pay- TV distributo­rs.

The Supreme Court’s rejection is the latest defeat for the suit, which was brought by a group of cable and satellite TV subscriber­s.

In March, a panel of judges for the 9th U. S. Circuit Court of Appeals in San Francisco sided with the entertainm­ent industry, saying that bundling does not violate antitrust laws.

Many large media companies sell their programmin­g in bulk. For example, Viacom packages its channels including Nickelodeo­n, Comedy Central and MTV together with less popular networks that it owns.

While a pay- TV distributo­r can buy individual channels from a programmer, there are usually substantia­l discounts offered for carrying multiple channels. The plaintiffs counter that programmer­s abuse their market power and harm competitio­n by requiring distributo­rs to sell channels in prepackage­d tiers rather than on an individual, or a la carte, basis.

The attorney for the plaintiffs, Maxwell Blecher , declined to comment on the Supreme Court action.

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