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- BUSINESS, Page 49Business NotesCABLE TVExploiting The Franchise
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- A bleak economy and mounting resistance to higher basic-cable
- rates made 1991 a blah year for the pay-cable TV industry.
- According to media-research firm Paul Kagan Associates,
- subscriptions for the largest pay-cable services were flat or
- down. But the Disney Channel announced last week that it grew
- 11% in 1991, adding 633,000 households. That brings its base of
- 6.25 million into a virtual tie with No. 3, Cinemax.
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- Disney's gains on cable leaders HBO (17.3 million
- subscribers) and Showtime (7.3 million) are due in part to its
- campaign to educate the public to its full menu of programming,
- and in part to an aggressive price-cutting strategy. Morning and
- afternoon shows are dedicated to preschoolers, preteens and
- teens. Family programming airs from 6 p.m. till 9 p.m., when
- adult fare takes over.
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- Disney has persuaded a number of cable-system operators to
- lower monthly fees, whether for Disney alone or as part of a
- package with other pay services. In either case Disney reduces
- its own fee. The channel freely capitalizes on the promotional
- value of the Disney name by sending classic cartoon characters
- to malls, parades and ribbon-cutting ceremonies. Says
- Christopher Dixon, a media analyst for Paine Webber: "Disney has
- a very clear franchise, and they promote it extensively."
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