Several groups have put pressure on the FCC to mandate that cable companies offer their channels a la carte rather than in bundles.We are opposed to this measure and will continue to strive to provide channels in bundled tiers.However, we want to be prepared in case we need to offer a single channel pricing.Using the existing market research, we were able to calculate an estimated own-price elasticity of demand for a number of our most popular cable channels.Use this information, along with the marginal cost for each channel, to calculate the profit-maximizing price for each of these channels.

Channel

Programming Cost per Subscriber per Month

Estimated Own Price Elasticity of Demand

Subscription Price

ESPN

6.15

-1.8

TNT

1.52

-2.1

Disney Channel

1.25

-1.6

Fox News

1.05

-1.9

MSNBC

0.99

-2.4

CNN

0.87

-3.4