In the Matter of ) ) Empowering Parents and Protecting ) MB Docket No

Home , Alex Russo, Brenda Song, Disney Interactive, Disney XD, Pass the Plate, Phineas and Ferb

Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554

______) In the Matter of ) ) Empowering Parents and Protecting ) MB Docket No. 09-194 Children in an Evolving Media Landscape ) ) Children’s Television Obligations of ) MB Docket 00-167 Digital Television Broadcasters ) ) ______)

REPLY COMMENTS OF THE WALT DISNEY COMPANY

TABLE OF CONTENTS

EXECUTIVE SUMMARY……….…………………………………………………………………ii I. DISNEY PROVIDES A WIDE DIVERSITY OF ENRICHING AND ENGAGING CHILDREN’S VIDEO CONTENT ...... 3 A. Disney Channel...... 4 B. Disney XD...... 6 C. ABC-Owned Television Stations ...... 8 II. DISNEY INFORMS AND EDUCATES PARENTS AND CHILDREN ON A VARIETY OF SUBJECTS, BOTH ON AIR AND OFF ...... 12 A. Disney educates families about the benefits and responsibilities of using the Internet...... 13 B. Disney provides parents and children with the tools to make nutritional and healthy food choices...... 14 C. Disney’s programming includes a number of pro-social messages...... 17 D. The ABC-Owned Television Stations’ pro-social initiatives extend well-beyond programming...... 18 III. DISNEY SUPPORTS THE PARENTAL RATINGS SYSTEM AS THE ONLY RATING SYSTEM THAT SHOULD BE CARRIED BY PROGRAMMERS...... 19 A. Disney has implemented stringent practices and procedures to ensure that its programming receives an appropriate Parental Rating...... 20 B. Programmers should not be required to use ratings placed on shows by another entity ...... 23 IV. DISNEY TAKES CARE IN THE ACCEPTANCE AND PLACEMENT OF ADVERTISING AND OTHER COMMERCIAL MESSAGES IN CHILDREN’S PROGRAMMING AND NO ADDITIONAL REGULATIONS ARE WARRANTED OR SUSTAINABLE ...... 25 V. D ISNEY TAKES A HOLISTIC APPROACH TOWARDS ENSURING ONLINE SAFETY, FROM EDUCATIONAL EFFORTS TO DESIGNING SAFE ONLINE PRODUCTS ...... 28 VI. A FINAL NOTE ON AUTHORITY AND FIRST AMENDMENT...... 31 VII. CONCLUSION ...... 32

EXECUTIVE SUMMARY

The Walt Disney Company (“Disney”) respectfully submits these reply comments (“Reply Comments”) in the instant proceeding in which the Federal Communications Commission (“FCC” or “Commission”) is seeking comment on the best means to empower parents to take advantage of the benefits of the multitude of media platforms available in today’s digital marketplace. As the pre-eminent provider of high- quality family entertainment, Disney has been, and will always be, working to achieve the FCC’s twin goals of empowering parents and protecting children in the ever-evolving digital media age. Indeed, like no other company, children and families are the very heart of Disney.

In these Reply Comments, Disney will describe the wealth of diverse and enriching children’s content it provides over a wide variety of platforms from broadcast television to the Internet. For example, Disney will highlight the programming of Disney Channel, Disney XD, and the ABC-Owned Television Stations. Disney also will discuss its educational initiatives targeted towards parents and children. These initiatives cover topics such as digital literacy (e.g., programs aimed at educating families about the benefits and responsibilities of Internet use), health and nutrition (e.g., Disney’s efforts to provide parents and children with the tools to make nutritional and healthy food choices), and numerous other pro-social messages, from environmental issues to H1N1 education.

Disney also discusses in these Reply Comments the comprehensive internal processes it has implemented to review all of its video programming to ensure that such programming receives the appropriate rating. In addition, Disney explains the care it takes with respect to advertising in content targeted towards children, as well as describes its initiatives to ensure online safety.

In addition to discussing its approach to children’s content and related issues, throughout these Reply Comments, Disney offers our perspective on various regulatory initiatives raised by the Commission’s Notice of Inquiry. Importantly, the vast majority of the initiatives described in these Reply Comments are Disney’s own voluntary efforts, and not pursuant to any government requirement. Indeed, as many commenters have demonstrated, a wide variety of industries, from media providers to web publishers, have similarly developed creative and successful initiatives to educate and empower parents, without governmental mandates. As a result, additional regulation by the FCC is not warranted. Moreover, as the record in this proceeding makes clear, there are significant jurisdictional and constitutional impediments to the enactment of additional regulations over media content (including advertising) in the name of protecting children. In short, in Disney’s view, in this dynamic media environment, static government requirements become stale quickly and the FCC would best serve parents and children by continuing to encourage and highlight the best efforts of companies in this area. Disney would be pleased to work with the Commission as it looks for ways to do so.

Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554

REPLY COMMENTS OF THE WALT DISNEY COMPANY

For over 80 years, the Walt Disney Company (“Disney”) has provided high-

quality family entertainment throughout the world. Indeed, like no other company,

children and families are the very heart of Disney. It thus should come as no surprise that

Disney supports the Commission’s twin goals of empowering parents and protecting

children in the ever-evolving digital media age. Disney is pleased to provide these reply

comments (“Reply Comments”) in the above-referenced proceeding.1

1 These Reply Comments are filed on behalf of all the operating divisions of The Walt Disney Company, including Disney Channel, Disney XD, the ABC Television Network, the ABC-Owned Television Stations (as defined herein), and Disney Interactive Media Group.

In these Reply Comments, Disney will provide detail on our own enriching

content, ranging from compelling video programming to online products to educational

initiatives. We also will provide detail on Disney’s parental empowerment efforts, including Disney’s digital literacy and nutritional campaigns. Along the way, Disney will offer our perspective on various regulatory initiatives raised by the Commission’s Notice of Inquiry.2 It warrants stressing at the outset that the vast majority of the initiatives

described in these Reply Comments are of Disney’s own voluntary efforts, and not

pursuant to any government requirement. Achieving the twin goals of empowering parents and protecting children is so critical to Disney’s success as the pre-eminent

provider of children’s and family entertainment that Disney has been, and will always be,

working to achieve them above and beyond what any regulations require. Moreover, in

Disney’s view, and as many commenters have demonstrated, in this dynamic media environment, static government requirements become stale quickly and the FCC would best serve parents and children by continuing to encourage and highlight the best efforts

of companies in this area.3 Disney would be pleased to work with the Commission as it

looks for ways to do so.

2 See generally Empowering Parents and Protecting Children in an Evolving Media Landscape, MB Docket No. 09-194, Notice of Inquiry, 24 FCC Rcd 13171 (Oct. 23, 2009) (“Notice of Inquiry”). 3 See, e.g., Comments of AT&T, at 7-8 (stating that the FCC “should ensure that service providers have the flexibility they need to develop new tools and initiatives to empower parents to protect their children online as new risks or challenges emerge”); Comments of the Entertainment Software Association, at 19 (“governmental efforts to modify successful private programs in a dynamic industry can only freeze the industry’s ability to respond to marketplace changes and ultimately will reduce the programs’ effectiveness.”); Comments of Google, Inc., at 8-12 (explaining that the FCC should

In addition to these Reply Comments, Disney is joining reply comments in this

proceeding filed as part of a coalition of affected entities.4 Disney also is a member of various trade associations, many of which have filed comments in this proceeding, including the National Cable & Telecommunications Association, the National

Association of Broadcasters, and the Entertainment Software Association.5

I. DISNEY PROVIDES A WIDE DIVERSITY OF ENRICHING AND ENGAGING CHILDREN’S VIDEO CONTENT

At the heart of Disney is our high-quality video content, now enjoyed by children

on a variety of screens and by a variety of methods. In this section of the Reply

Comments, we highlight the video programming we produce and distribute via Disney

Channel, Disney XD, and the ten television broadcast stations owned and operated by

Disney (“ABC-Owned Televisions Stations”).6

focus on promoting (rather than mandating) parental empowerment tools); Comments of the National Association of Broadcasters, at 22-32 (urging the FCC to encourage development of marketplace solutions rather than impose specific regulations); Comments of Verizon and Verizon Wireless, at 19-24 (explaining that no regulation is necessary “in light of voluntary industry initiatives and existing governmental oversight”); Comments of Viacom, Inc., at 2-10 (describing Viacom’s self-initiated efforts to educate parents and empower children). 4 See Reply Comments of the National Media Providers. 5 See, e.g., Comments of the Electronic Software Association; Comments of the National Association of Broadcasters; Comments of National Cable & Telecommunications Association. 6 The ABC-Owned Television Stations are WABC-TV, New York, New York; WPVI-TV, Philadelphia, Pennsylvania; WLS-TV, Chicago, Illinois; WTVG(DT), Toledo, Ohio; WTVD(DT), Durham, North Carolina; KGO-TV, San Francisco, California; KABC-TV, Los Angeles, California; KFSN-TV, Fresno, California; KTRK-TV, Houston, Texas; and WJRT-TV, Flint, Michigan.

A. Disney Channel

Disney Channel continues to invest in new and diverse programming that children and families love to watch. Disney Channel programming focuses on positive development and encourages children to express themselves, follow their dreams, believe in themselves and celebrate their friends and families. These are ideas relevant to children everywhere – spanning both language and cultural differences. By making these themes central to our programming, we aim to encourage children to participate in the world around them and to use their imagination, creativity and curiosity.

Disney Channel is wildly popular with children and tweens. For children 6-11,

Disney Channel has been the number one cable network for seven consecutive years and, for tweens 9-14, Disney Channel has been the number one cable network for nine consecutive years. And, this past year, Disney Channel aired two of the top 20 most viewed cable telecasts in 2009 (by all age groups): Wizards of Waverly Place: The Movie

(with almost 13.5 million viewers); and Wizards on Deck With Hannah Montana (with over 10.5 million viewers). Other notable awards for Disney Channel programming include:

• 61st Primetime Emmys: Wizards of Waverly Place (Outstanding Children’s Program); • 58th Primetime Emmys: High School Musical (Outstanding Children’s Program);7 • 2008 Humanitas Prize: Johnny Kapahala: Back On Board (Children’s Live Action);

7 High School Musical tied with Nickelodeon’s Nick News w/ Linda Ellerbee

• 2008 Humanitas Prize: My Friends Tigger & Pooh: “Eeyore’s Sad Day” (Children’s Animation); • 23rd Genesis Awards: Handy Manny: “Manny’s Mouse Traps” (Best Children’s); and • 18th Annual Environmental Media Awards: Handy Manny: “Sculptor Manny”/“Manny Goes Solar” (Children’s Program). Examples of the series on Disney Channel include:

• Hannah Montana: Miley Cyrus stars in this Emmy-nominated comedy that has dominated the kid and tween set for years. The fourth season is set to launch this summer, with the storyline focusing on whether Miley Stewart can continue with her alter-ego, Hannah Montana, or leave it forever behind to be an ordinary girl. A special episode will focus on military families. • Wizards of Waverly Place: Alex Russo and her brothers Justin and Max are a lot like the teens in their Manhattan neighborhood but they have one significant difference…they come from a long line of wizards and they must learn to hone their budding magical powers or soon risk losing them. Their dad Jerry was born with the same powers but was forced to relinquish them when he married their mom, a mortal named Theresa. Now, while their parents run the family business, Waverly Sub Station, the three siblings get into and out of comedic situations as they grapple with both their budding wizardly powers and typical teen challenges spanning school, friends and family. • Phineas and Ferb: The Emmy Award-nominated “Phineas and Ferb” has ranked as the number one animated series among kids 6-14 for two consecutive years. This comedy focuses on the fun and imaginative exploits of Phineas and Ferb, as well as their beloved pet platypus, Perry, who is really a secret agent and who battles the forces of evil daily. • JONAS: The Teen Choice Award-winning comedy series stars the Jonas Brothers as themselves, struggling to lead a regular life alongside all the trappings of their stardom.

In addition to the programming referenced above, Disney Channel also includes

short-form programming, which is designed to highlight the themes of communication,

diversity and optimism. For example, the Express Yourself series features Disney

Channel stars encouraging young viewers to express their feelings in positive ways and to

embrace and accept their differences through tolerance and communication. In addition,

5 a year ago Disney launched the Friends for Change on-air and online campaign with messaging and action steps that help kids help the environment.

For preschoolers, Disney Channel airs a block of programming under the umbrella title of “Playhouse Disney.” Disney’s approach to programming for this unique age group is meant to support age-specific positive development. We take inspiration from a “whole child” philosophy that promotes physical, emotional and social development. Through long- and short-form programs, we seek to reinforce lessons taught at home, ranging from manners and healthy eating to safety and hygiene, as well as to reinforce critical social and life skills, including the ability to understand emotions and learn how to get along with others. Additionally, certain Playhouse Disney programs include early mathematics, literacy and problem-solving concepts. Examples of

Playhouse Disney programs include:

• Mickey Mouse Clubhouse, which features animated stories with an underlying curriculum that presents early mathematics concepts such as sequencing, counting, classifying, sorting, patterns and more. • Little Einsteins, which takes preschoolers on exciting journeys that expose them to fine arts and different musical styles and composers in each episode. • Handy Manny, which is set in a multicultural, multi-generational community and follows a curriculum that models problem solving.

B. Disney XD

In 2009, Disney re-branded the network formerly known as “Toon Disney” as

“Disney XD.” Disney XD has a mix of live-action and animated programming for children ages 6-14, targeting boys and their quest for discovery, accomplishment, sports, adventure and humor. The programming includes original series, movies and short-form content, as well as sports-themed series. Like the Disney Channel content, Disney XD

content spans television, online, mobile and video-on-demand platforms. During its launch year, Disney XD was the viewership growth leader among all kid-targeting cable

networks. Examples of programming on Disney XD include:

• Zeke and Luther: In the quirky buddy comedy series, the fearless sidewalk surfers and best friends Zeke and Luther gear up and put their right foot forward to master the awesome art form of skateboarding (which is also their principle method of transportation). Along the way, they navigate the literal and figurative luge of teen years with all of its tricks, grinds, obstacles and occasional slams. Among the ups and downs at school, in their middle class Northern California neighborhood and at home are an annoying younger sister, a “frenemy” skater dude who aces them every time, a new girl from England who moves in across the street and a geeky kid who repeatedly tries to join their freestylin’ skater circle. • I’m in the Band: In this music-filled comedy, Tripp Campbell joins his favorite “vintage” rock band, Iron Weasel, and is determined to help the band he idolizes make an epic comeback. He’s certainly got his work cut out for him with the trio of rock star misfits whose stars have fallen so far that they can't even afford their own housing and are forced to share bunk beds in a guest room at Tripp’s house. Nonetheless, in their own off the wall way, the three stooges will do their best to help Tripp steer through his teenage years with the goal of turning him into a bona fide rock star and giving him the chance to live out his dream. • The Suite Life on Deck: In this live-action comedy series, a spin-off of the popular Disney Channel series The Suite Life of Zack & Cody, teenage twins Zack and Cody Martin, spoiled hotel heiress London Tipton, friend and classmate Bailey, who left her small town roots to experience a whole new world, and newcomer Marcus Little, a former singing sensation whose career ended when his voice changed, go aboard a luxury passenger cruise liner, the SS Tipton, owned by London’s father, as it cruises the world with tourists and students who attend classes at its Seven Seas High. The dutiful Mr. Moseby serves as the cruise director, trying to keep his sanity despite a daily dose of teenage antics.8

8 The Suite Life on Deck also airs on Disney Channel.

C. ABC-Owned Television Stations

The ABC-Owned Televisions Stations air a variety of educational and

informational (“E/I”) programming in compliance with the Children’s Television Act of

1990 (“CTA”). On their primary channels, the ABC-Owned Televisions Stations each

broadcast a three-hour block of children’s television programming entitled “ABC Kids.”9

The ABC Kids programming includes a variety of popular programs with entertaining

storylines featuring animated and/or live action characters to whom children eight to

thirteen years old can relate. In addition, the ABC Kids programming deals with serious

issues in a pro-social way, including such issues as peer pressure; integrity; self-esteem

and self-acceptance; popularity; family and household rules; jealousy; friendship; loyalty;

sibling rivalry; dealing with authority; divorce; bereavement; fairness; and trust and

responsibility.

In addition to the ABC Kids programming, the ABC-Owned Television Stations air on their primary channels numerous other regularly-scheduled programs and specials that are geared to both parents and children. For example, KFSN in Fresno, California has been engaged in a year-long “Children First” campaign that has included locally- produced half-hour news programs, thirty-second vignettes, public service announcements (“PSAs”) and special stories on Action News specifically targeted towards parents and their children. In addition, each quarter throughout the year, KFSN

9 Some of the ABC-Owned Television Stations supplement the three-hour block of ABC Kids programming by airing other E/I programming for children on their primary channels as well. This programming includes such titles as Jack Hanna’s Animal Adventures, Animal Exploration with Jarod Miller, and Teen Kids News.

airs a one half-hour episode of Connect with Kids, a syndicated program featuring children, parents and medical, mental health and law enforcement experts.

Like KFSN, WPVI in Philadelphia, Pennsylvania airs on its primary channel a wide-variety of programming of interest to parents and children alike. For example, in the fourth quarter of 2009, WPVI broadcast High School Huddle (a half-hour locally produced program showcasing games, players, coaches and human interest stories from local high schools); It’s a Green Christmas (a one-hour holiday special featuring eco- friendly products, projects and activities); and A Gospel Christmas (a holiday special featuring America’s top names in the gospel music industry).

The ABC-Owned Television Stations also broadcast on their two multicast channels a minimum of six hours of regularly scheduled local or syndicated weekly

“core” E/I programming for children. Several of the ABC-Owned Television Stations exceed the FCC-mandated minimum processing guidelines for children’s programming on multicast channels, with one station airing six and a half hours, two offering seven hours, and a third airing no less than eleven hours of such programming. E/I programming is broadcast on the ABC-Owned Television Stations’ multicast channels in various timeslots on weekend and weekday mornings and afternoons.10 The core E/I

10 Two stations currently air their E/I programming on Saturday mornings and afternoons, four stations air it on the mornings and/or afternoons of both Saturday and Sunday, one broadcasts it on the mornings of both weekdays and weekends, and three offer E/I programming on a combination of weekend mornings or afternoons and weekday afternoons after school.

programming currently multicast on the ABC-Owned Television Stations includes the following:11

• Jack Hanna’s Animal Adventures, a series produced by Litton Entertainment that follows the Director Emeritus of the Columbus Zoo in Ohio on journeys to zoos, aquariums, and wildlife preserves where animals are kept, studied and trained, to learn about different animal species from around the world and about efforts by human role models to promote the protection, preservation and understanding of wildlife and its habitats. • Teen Kids News, a syndicated newscast by and for teens, hosted by a diverse news team made up of bright young African American, Hispanic, Asian American and Caucasian male and female “journalists” reporting in their own words from a professional news set and the field on a variety of stories, including world events, of interest and educational value to its target audience. • What’s Up! Que Pasa, a hip bilingual multi-cultural show that emphasizes the commonalities among, and differences between, different cultures, and keeps children entertained with a combination of rap music, humor, skits and story telling while educating them in Spanish and English language development, cross-cultural awareness and positive moral and health choices such as reading appreciation and avoidance of drugs and alcohol. • Dragonfly TV, a syndicated series, formerly on PBS, featuring real children doing real science, and demonstrating practical applications of math and science with enjoyable, hands-on projects promoting critical thinking and problem-solving skills as well as writing and creative skills.

The ABC-Owned Television Stations supplement their regularly-scheduled digital

multicast channel core E/I programs with numerous programs and specials which are not specifically targeted to children but nevertheless are appropriate and educational for families with children.

11 The particular core E/I programming broadcast on multicast channels varies from station to station.

In addition to the programming described above, during the fourth quarter of

2009, the ABC-Owned Television Stations also broadcast on their D2 channels hundreds

(or, as is the case with a few stations, thousands) of child-focused PSAs. The sponsors of these PSAs ranged from the Partnership for a Drug-Free America to Big Brothers/Big

Sisters of America. Subject matters covered by the PSAs include health and safety; the arts; cultural opportunities; literacy; education and social service. Many of the ABC-

Owned Television Stations both produce and air these PSAs at no charge in their capacities as media partners with charitable organizations.

* * *

In the Notice of Inquiry, the Commission asks whether the Commission’s rules implementing the CTA have been effective in “promoting the availability of educational content for children on broadcast television.”12 As demonstrated by the comments in this proceeding, it is apparent that the Commission’s rules and its E/I programming requirements have indeed resulted in broadcast television stations providing three hours of regularly scheduled children’s programming.13 Indeed, broadcasters like the ABC-

Owned Television Stations have made significant efforts to meet the educational and developmental needs of children. At the same time, however, it is hard to avoid the vast amount of enriching children’s content available online and via non-broadcast cable

12 Notice of Inquiry at ¶ 27. 13 See, e.g., Comments of ION Media Networks, Inc., at 3-10 (providing overview of ION’s children’s programming); Comments of the National Association of Broadcasters, at 9-13 (setting forth numerous examples of robust children’s programming on broadcast television); Comments of Viacom, Inc., at 2-10 (discussing Viacom’s children’s programming initiatives).

networks specifically serving the niche market of children, such as Disney Channel,

Disney XD, Nickelodeon, and Sprout.14 In a world in which so much enriching content is

available via many channels and on many screens, it could well be argued that the three-

hour rule is no longer needed and that some broadcasters, who need to attract as broad an

audience as possible to garner the advertising dollars needed to support their free over-

the-air service, could be left to serve the unique needs of their audiences in other ways.

In any event, given the wide availability of enriching content, there is no need to expand

or augment the current broadcast rules.

II. DISNEY INFORMS AND EDUCATES PARENTS AND CHILDREN ON A VARIETY OF SUBJECTS, BOTH ON AIR AND OFF

As described above, Disney weaves significant amounts of pro-social messaging

throughout its programming. In addition, Disney educates parents and children alike on a

wide range of subjects through stand-alone messaging in interstitials or short-form

programming. These messages cover a broad range of issues, from digital literacy and

Internet safety to nutrition and health. Moreover, as described herein, the ABC-Owned

Television Stations have engaged in a number of off-air, pro-social initiatives for children.

14 See, e.g., Comments of the Progress & Freedom Foundation & The Electronic Frontier Foundation, at 32-34 (stating that “[w]e are living in the golden age of children’s video programming opportunities and options” and providing list of such content).

A. Disney educates families about the benefits and responsibilities of using the Internet

In response to the questions raised in the Notice of Inquiry, many parties

submitted comments discussing the need for digital literacy campaigns.15 Additionally,

subsequent to the deadline for submitting comments to the Notice of Inquiry, the FCC

released its National Broadband Plan, which recommended, inter alia, the launch of a

National Digital Literacy Program, which program can provide parents with the

assurance that their children will be able to reap the benefits of the Internet.16 Disney

agrees wholeheartedly with commenters and the Commission alike that parents and

children need to be educated about the benefits and responsibilities of going online.

Because of this concern, Disney has always been committed to online safety and parental

education and, to this end, has undertaken a series of evolving educational efforts.

Most recently, Disney, in conjunction with Common Sense Media (“Common

Sense”), launched a “Digital Rules of the Road” campaign. This campaign features

Phineas and Ferb, the two popular Disney Channel characters highlighted above, and

includes PSAs (aired on Disney Channel and Disney XD) and a website dedicated to

Internet safety issues. The “Common Sense with Phineas and Ferb” website is designed

for use by children and their parents, and includes links to a wealth of information about

15 See, e.g., Comments of the Center for Media Literacy; Comments of Common Sense Media, at 5-8; Comments of the Internet Keep Safe Coalition, at 10-19; Comments of the National Association of Broadcasters, at 2-3; Comments of National Cable & Telecommunications Association, at 18-20; Comments of National Association for Media Literacy Education and the Media Education Lab at Temple University. 16 See Connecting America: The National Broadband Plan, at Chapter 9.3 (rel. Mar. 17, 2010) (“National Broadband Plan”).

privacy, balancing time spent online and offline, and numerous other issues related to

online safety. As recognized in the comments of the National Association of

Broadcasters, the joint Disney/Common Sense campaign initiative “illustrate(s) the

creative power and public/private partnerships that media companies can harness to

promote positive messages for children and parents, both over-the-air and online.”17

B. Disney provides parents and children with the tools to make nutritional and healthy food choices

Not only is Disney focused on ensuring that parents and children are empowered

with the tools they need to facilitate Internet safety, Disney also understands the

challenges faced by parents in regard to their family’s nutrition and strives to be part of

the solution. Thus, in 2006, Disney made a pioneering commitment to associate our

brands and characters with a healthier and more nutritious portfolio of foods (“Disney

Food Portfolio”). To that end, Disney announced new Nutritional Guidelines aimed at

giving parents and children healthier eating options.18 Disney’s Nutritional Guidelines

govern the use of the Disney brands and characters on or in connection with food-related activities company-wide, including food service at Disney’s Parks and Resorts,

sponsorships, consumer tie-in promotions, licensed products, and advertising on Disney’s

media outlets. The Nutritional Guidelines apply to all food and beverage promotional or

17 Comments of the National Association of Broadcasters, at 5. 18 Disney’s nutritional standards were developed with top childhood health experts, Dr. Keith Ayoob and Dr. Jim Hill, and are based on the USDA’s dietary guidelines for Americans. They are organized by key meal occasion, and include specific limits for calories, fat, saturated fat, sodium and sugar per portion per meal occasion.

14 sponsorship activity targeting children under the age of eighteen. In 2009, the majority of

Disney’s promotions and sponsorships met the Nutritional Guidelines.

Disney’s Nutritional Guidelines are derived from the Dietary Guidelines of the

United States Department of Agriculture Dietary (“USDA”) Guidelines with the input of top child health experts, and they aim to: (i) control calories, fat, saturated fat, sugar, and sodium; (ii) eliminate added trans fat, partially hydrogenated oils, and caffeine; and (iii) encourage appropriate portions for children. In addition to creating Nutritional

Guidelines, Disney also set a long-term target for balancing our Disney Food Portfolio such that 85% of the foods therein will satisfy the aforementioned guidelines.19

Since our 2006 announcement, we have achieved several key goals and made significant progress toward others, including the following:

• The Nutritional Guidelines are being implemented by all Disney operating units internationally. The majority of Disney’s promotions and sponsorships now meet the Nutritional Guidelines. • The use of trans fat in our licensed food products and food service operations has been eliminated in all regions where comparable substitute products exist in the marketplace • Over 85% of our Disney Food Portfolio distributed in the United States is comprised of everyday foods that meet our Nutritional Guidelines. Further, we have put increased focus on fruits, vegetables and calcium. For example, Disney Consumer Products’ licensed food portfolio now includes close to 90 varieties of fruits and vegetables. • In 2009, Disney licensed products accounted for more than 500 million servings of fruits and vegetables and more than 500 million servings of dairy products in the United States.

19 The remaining 15% will include special-occasion items such as Disney birthday cakes, confectionary products and other occasional sweets.

In addition to implementing the Nutritional Guidelines for the Disney Food

Portfolio described above, and of particular relevance to the FCC, Disney has committed

to use the media positively to influence children’s eating habits by integrating healthy

lifestyle messages into our children programs. For example, Disney has sought to

encourage good nutrition and active lifestyles in a way that children embrace through

messages included in episodes of Hannah Montana and Mickey Mouse Clubhouse, as

well as short-form programs featuring the Jonas Brothers, the Get’cha Head in the Game

series (an interstitial series that inspires kids to follow their dreams through physical

activity) and the Pass the Plate series (featuring Suite Life on Deck star Brenda Song).

Disney Channel’s short-form series Pass the Plate has been particularly successful in

explaining nutrition in a way children understand. For example, the following excerpt is

representative of the messaging included in the Pass the Plate series:

Ever wonder where fruit comes from? Besides a bowl? The answer is all over the world. Apples from New Zealand. Bananas from Costa Rica. Oranges from Spain. But there are also many fruits that don't come from all over, because they grow right where you live. That’s why I love coming to my local market. There's so much local food to choose from! Locally grown fruit is really fresh, too. Sometimes you can even go out and pick it yourself. Of course, what you can get depends on where you are. And some places have a lot more choices than others. To learn more about eating local produce, get your parent’s permission, and you can go to DisneyChannel.com/passtheplate.

In addition to including healthy lifestyle messages in its programming, Disney has

collaborated with the Ad Council and USDA to create PSAs featuring scenes from The

Jungle Book and Pinocchio. These PSAs have reached 600 million people with messages to eat right and be active. Most recently, in February 2010, Disney announced that it will

develop a multi-media program in collaboration with First Lady Michele Obama

supporting the “Let’s Move” campaign aimed at encouraging a healthier generation of

16 children.20 As part of this program, Disney will create a series of PSAs featuring the First

Lady and leading Disney Channel stars to inspire healthier eating habits, physical activity and more. The messages will be featured across Disney’s kid and family targeted media platforms, including Disney Channel, Disney XD, Radio Disney, and Disney.com and will begin airing later this year.

Finally, in addition to the efforts detailed above, Disney has empowered parents and children to obtain information and education about healthy lifestyles using the

Internet. For example, to help teach children about the food pyramid, Disney added information on our food package panels and developed the www.disney.com/healthykids educational website. This website will be re-launched in 2010 and will contain much more entertaining and educational content.

C. Disney’s programming includes a number of pro-social messages

In addition to digital literacy and nutrition, Disney also airs programming with any number of any other pro-social messages. Disney recognizes that its characters can have a really positive influence on children. Consequently, we make a concerted effort to use our very best talent to promote a range of pro-social topics. For example, as noted above, a year ago Disney launched the Friends for Change on-air and online campaign with messaging and action steps that help children help the environment. And, this fall,

Disney focused on H1N1 prevention. Handy Manny, a hugely popular character among the preschool set, highlighted the importance of washing hands and offered other tips to

20 See Press Release, “Disney Announces Collaboration with First Lady Michelle Obama to Create a Healthier Generation: New Lifestyle Campaign Will Feature Disney Channel Stars and First Lady” (rel. Feb. 9, 2010).

prevent the spread of germs in an interstitial segment and online at PlayhouseDisney.com

(the online segment featured a link to the Center for Disease Control’s flu prevention

micro-site and printable tips for parents on how to prevent and treat the flu).

D. The ABC-Owned Television Stations’ pro-social initiatives extend well- beyond programming

Importantly, Disney’s pro-social initiatives are not limited to its programming and

online platforms. The ABC-Owned Television Stations, for example, take part in

numerous off-air pro-social campaigns involving children. To cite just a few examples

from the fourth quarter of 2009:

• KABC in Los Angeles sponsored its 17th Annual Toy Drive, which collected over 600,000 toys that were distributed to children in need in all five counties of southern California, and participated in a local Adopt-a- Family program, whereby station employees purchased, wrapped and delivered toys, clothing, household items and food to families and children. • WJRT in Flint, Michigan continued to sponsor “Newspapers in Education” with two local papers, whereby area students use newspapers in the classroom along with their textbooks to bring topics such as math, science, geography and language arts to life.

Personnel at several stations, including WJRT, WTVG in Toledo, and KTRK in

Houston, regularly visit area schools, read to children, and/or speak to students about broadcasting, weather systems, or television careers. In addition, several of the ABC-

Owned Television Stations offer tours of their facilities and operations and/or day-on-the- job experiences to students from area elementary, middle and high schools.

III. DISNEY SUPPORTS THE PARENTAL RATINGS SYSTEM AS THE ONLY RATING SYSTEM THAT SHOULD BE CARRIED BY PROGRAMMERS

As noted by the FCC as well as many commenters, the Notice of Inquiry in many

ways takes off where the Child Safe Viewing Act Report left off.21 Although the issues

raised in the Notice are much broader than those previously raised by the Commission, it

is worth turning for a moment to the issues raised in both dockets with respect to the

ratings system for television programming, namely the TV Parental Guidelines (“Parental

Ratings”).

As an initial matter, to be clear, Disney and ABC have been – and will continue to

be – supportive and involved in the television ratings system. For example, ABC is a

founding and active member of the Oversight Monitoring Board, which has worked

diligently over the last several years to improve the Parental Ratings and create better

coordination among the industry participants.22 In addition, as explained below, Disney

and ABC take great care in making decisions as to the appropriate Parental Rating to be

placed on any particular programming.

21 See, e.g., Comments of Comcast Corporation, at 1 (noting that “many of the issues raised in the Notice are similar to those in the Commission’s Child Safe Viewing Notice of Inquiry”); Comments of Parents Television Council, at 2 (“This proceeding quite rightly picks up where the Report to Congress pursuant to the Child Safe Viewing Act of 2007 . . . left off.”). See also, Notice of Inquiry, at ¶ 10 (“This NOI picks up where the CSVA Report left off.”). 22 See Comments of the National Association of Broadcasters, at 29-30 (explaining that “[t]he Monitoring Board’s efforts have resulted in meaningful improvements in the application of television ratings and are ongoing.”).

A. Disney has implemented stringent practices and procedures to ensure that its programming receives an appropriate Parental Rating

For many years, Disney has included in its organizational structure Standards &

Practices Departments that are involved in every step of the production of every program.

The Standards & Practices Departments were established well before the development of

the Parental Ratings for television programming. Since the implementation of the

television ratings system, the professionals in Disney’s Standards & Practices

Departments are tasked with assigning a Parental Rating that accurately reflects the

content of, and audience for, a particular program. After a very thorough review, they

apply the Parental Rating that accurately and appropriately reflects the content of a particular program. Each of Disney’s Standards & Practices Departments is responsible for reviewing programming relevant to a particular audience to ensure that content is appropriate for such audience.

These Reply Comments describe the Disney Channel Standards & Practices

Department (“Disney Channel Dept”) and the ABC Standards & Practices Department

(“ABC Dept”). Both the Disney Channel Dept and the ABC Dept review programming throughout development and production, taking into account applicable legal requirements, viewer expectations and brand promises. Similarly, both the Disney

Channel Dept and the ABC Dept review all content that goes on the air, from the pilot to the final on-air version, and including long-form programming, short-form programming,

and commercials. Each of the Disney Channel Dept and the ABC Dept is discussed

further below. As set forth in more detail below, the Disney Channel Dept and the ABC

Dept are comprised of professionals with a wealth of experience covering a wide range of

topics. These professionals review all Disney and ABC programming at all stages of

production and development and apply the appropriate Parental Ratings after a thorough

consideration of the program content. Through its Standards & Practices Departments,

Disney has implemented an effective means to ensure that parents have the information they need to make decisions about programming content to be viewed by their children.

Disney Channel Standards & Practices Department. The Disney Channel Dept

includes 17 experienced professionals, who work across the following platforms: Disney

Channel, Disney XD, ABC Family, Radio Disney, Playhouse Disney, international and

online. Members of the Disney Channel Dept have specialized knowledge covering a

wide range of topics, from the program genre (e.g., live-action, animation, preschool,

boys action-adventure, original movies, acquired series and movies, primetime series and

movies, music and music videos, online material) to commercial business matters (e.g.,

promotions and synergy, commercial clearance, international issues) to FCC compliance.

The professionals in the Disney Channel Dept have developed their expertise regarding

children’s matters through both formal education (many have advanced degrees in

communications and public health) and professional experience at television networks

(such as PBS, Fox, WB, and CBS), child-focused and other public interest organizations

(including Children Now, the Center for Media Literacy, and GLAAD), as well as many

other networks and production companies. Many of the members of the Disney Channel

Dept hold leadership positions with, and are members of, professional organizations,

including the Academy of Television Arts and Sciences.

ABC Standards & Practices Department. Like the Disney Dept, the ABC Dept is

a group of experienced professionals charged with the task of reviewing all non-news

material aired over the ABC Television Network. For example, the ABC Dept is

21 responsible for all scripted and non-scripted entertainment programming for all day parts

(including theatrical and made-for-television motion pictures, promotional material, commercials and PSAs) from its initial development to on-air broadcast. ABC Dept professionals review all programming and, based on the most relevant information about the show, apply the appropriate Parental Rating. For example, for single camera comedies and dramas taped on location, the ABC Dept receives and reviews footage shot on a daily basis. With respect to reality and contest shows, ABC Dept professionals administer the rules and engage in a labor-intensive process to determine the appropriate

Parental Rating for such shows. This task is further complicated when reality and contest shows are live broadcasts (as frequently is the case), where content must be evaluated, and ratings applied, effectively on-the-fly. To this end, the ABC Dept is responsible for the operation of the broadcast delay mechanism instituted for all live entertainment and sporting events which are subject to delay.

Not only do ABC Dept professionals review and apply Parental Ratings to entertainment programming, they also evaluate every promotional announcement over 5 seconds in length and, based on this evaluation, place the appropriate Parental Rating on each such promotional announcement. Indeed, each year, the ABC Dept reviews and rates nearly 45,000 promotional announcements, about 30% of which actually air. This task becomes especially challenging with live broadcasts (e.g., the Oscars) which may require last minute changes to Parental Ratings as content descriptors change.

The ABC Dept is led by a Senior Vice President with more than 31 years experience as an attorney, and 26 years in the field of broadcast television. The ABC

Dept is composed of 31 staff professionals and paraprofessionals. Eight of the 31 staff

members have more than 25 years experience in the field, with a total of 13 staff

members with ten or more years in the field. All are degreed professionals, many of

whom hold advanced academic degrees. For example, 11 members of the ABC Dept

hold Juris Doctor degrees, 6 hold Masters degrees in a variety of academic disciplines,

and 1 holds a PhD in Children’s Psychology.

B. Programmers should not be required to use ratings placed on shows by another entity

Disney and ABC recognize that other entities have and will continue to have their

own rating systems and work as cooperatively as possible with such groups, including

Common Sense and the Parents Television Council. However, to be very clear, Disney

and ABC respectfully object to the notion that programmers should be required to carry

ratings placed on our shows by any other entity, whether such ratings are part of a

universal ratings system or applicable to video programming on a stand-alone basis.23 As the record in this proceeding clearly demonstrates, the technical issues are complex, the practical issues are insurmountable, and the legal issues troubling.24

23 See, e.g., Comments of Common Sense Media, at 3 (discussing independent ratings systems); Comments of Parents Television Council, at 9 (“The Commission should consider an independent source for assigning content ratings.”). 24 See, e.g., Comments of Activision Blizzard, Inc., at 43-44 (describing constitutional concerns implicated by a mandatory ratings system); Comments of the Entertainment Software Association, at 20-23 and note 54 (describing the many practical issues with implementing a mandatory ratings system); Comments of Media Coalition, at 6 (“While voluntary ratings exist to help parents determine what is appropriate for their children, a government-mandated rating system or enforcement of an existing rating system would likely be a violation of the First Amendment.”); Comments of the National Association of Broadcasters, at 32 (explaining technical and practical challenges of implementing independent ratings system); Comments of the Progress & Freedom

As described above, Disney and ABC Standards & Practices professionals review

programming at every stage from initial development to on-air broadcast. They review

each and every episode of every series and place ratings on shows on an episode-by-

episode basis. It simply is not feasible for third parties to conduct this type of

comprehensive review. Moreover, many programs are aired live, or are finalized for

production very close to the airdate. There simply is no way that producers would or

could allow third parties to gain access to confidential scripts or tapes in advance of

airing. As comments in Commission’s proceeding relating to the Child Safe Viewing Act

demonstrated in detail, there are countless technical difficulties associated with proposals

to implement third party ratings, in particular the need to apply a limitless number of

ratings to programming simultaneously. Lastly, and most fundamentally, the current

ratings system and the V-Chip were premised on the notion that the ratings would be

placed by the programmers. Forcing a programmer to place any number of ratings on its

programs – when those ratings would be based on subjective judgments that very well

could be at odds with the programmers’ own editorial judgments – raises significant

constitutional questions of forced speech.25

Foundation & The Electronic Frontier Foundation, at 26-31 (explaining legal and other infirmities with mandatory ratings systems). 25 See, e.g., Comments of Activision Blizzard, Inc., at 48; Comments of the National Association of Broadcasters, at 30-31; Comments of the Progress & Freedom Foundation & The Electronic Frontier Foundation, at 28.

IV. DISNEY TAKES CARE IN THE ACCEPTANCE AND PLACEMENT OF ADVERTISING AND OTHER COMMERCIAL MESSAGES IN CHILDREN’S PROGRAMMING AND NO ADDITIONAL REGULATIONS ARE WARRANTED OR SUSTAINABLE

The NOI asks a series of questions about the content and appropriateness of advertising generally, including whether additional regulation is warranted or whether voluntary efforts already are sufficient. There is extensive self-regulation in the field of marketing to children, most notably by the Children’s Advertising Review Unit

(“CARU”), of which Disney is a member and supporter.26 Accordingly, additional

regulation is neither warranted nor legally sustainable.27

CARU is unique in that it addresses advertising and commercial messages across all media—on air, interactive, print, online, and mobile. CARU’s guidelines are

comprehensive and yet dynamic. In CARU’s own words, it: “evaluates child-directed

advertising and promotional material in all media to advance truthfulness, accuracy and

consistency with its Self-Regulatory Guidelines for Children’s Advertising and relevant

laws,”28 recognizing that “the special nature and needs of a youthful audience require

particular care and diligence on the part of advertisers.”29 As for CARU’s guidelines

themselves, they are “deliberately subjective, going beyond the issues of truthfulness and

26 See Comments of the Council of Better Business Bureau, at 4 (“A principal proponent of self-regulatory efforts in the area of advertising to children is . . . CARU [which] has promoted responsible advertising to children under 12 since 1974.”). 27 Indeed, the Federal Trade Commission has extensive authority over issues relating to advertising, including protecting children from unfair or deceptive marketing practices. 28 CARU Safe Harbor Program Requirements, available at http://www.caru.org/program/safeHarbor.aspx. 29 About the Children’s Advertising Review Unit (CARU), available at http://www.caru.org/about/index.aspx.

accuracy to take into account the uniquely impressionable and vulnerable child

audience.”30 CARU actually monitors and reviews advertising in all forms, including

“the scrutinizing of over ten thousand television commercials, and the review of advertisements in print, radio and online media.” 31 Additionally, CARU’s guidelines

32 address children’s online privacy.

Importantly, CARU’s guidelines cover the issue of separation of commercial and

noncommercial content.33 Unlike the FCC’s rules governing commercial matter in

children’s television programming, CARU’s guidelines apply broadly to commercial

matter in all media. Therefore, through vigorous self-regulation and aggressive industry

involvement, the concept of commercial separation are, in fact, being extended to the

online world.

With respect to the content of children’s advertising, the professionals in Disney’s

Standards & Practices departments review all advertising that is placed in children’s

programming using Disney’s own internal standards, which are much more

comprehensive and extensive than any regulatory requirements ever could or should be.

For example, pursuant to its internal guidelines, Disney Channel does not air traditional

third-party commercials. Rather, in lieu of traditional third-party commercials, Disney

Channel accepts certain limited sponsorships. These sponsorships focus on pro-social

30 Welcome to Children’s Advertising Review Unit, http://carunews.blogspot.com/2009/01/welcome-to-childrens-advertising-review.html. 31 Welcome to Children’s Advertising Review Unit, http://carunews.blogspot.com/2009/01/welcome-to-childrens-advertising-review.html. 32 See CARU’s Self-Regulatory Program for Children’s Advertising, at 13-15, available at http://www.caru.org/guidelines/guidelines.pdf (“CARU Guidelines”). 33 See CARU Guidelines, at 9-10.

messages, include limited commercial messaging, and do not contain “calls to action” or

other sales inducements.

One additional point warrants stressing. The FCC’s commercial limits rules apply

to programming primarily intended for children 12 and under. Although, as demonstrated

throughout these Reply Comments, Disney is particularly and uniquely sensitive to the

needs of children, there also are appropriate times and places – particularly on the mass

medium of broadcast television – for content that is not specifically directed to children

and that is enjoyed by millions of Americans, including parents and other adults. Disney

submits that FCC rules that are intended for the protection of children should not be

extended to programming – like prime-time programming – that is intended for, and

enjoyed by, a much broader demographic.

With respect to interactive advertising, the Notice of Inquiry asks whether the

FCC should take action to regulate interactive advertising directed to children 12 and

under.34 This issue was first raised by the FCC several years ago in a Further Notice of

Proposed Rulemaking (“FNPRM”).35 Disney respectfully submits that, as was the case at

the time of the FNPRM, no FCC action is warranted on this issue. Simply put, since the

time this issue has been raised, interactive television advertising has never developed into an actual practice and there is no need to create regulations to operate in a vacuum.

34 See Notice of Inquiry, at ¶ 36 and note 62. 35 See Children’s Television Obligations of Digital Television Broadcasters, Report and Order and Further Notice of Proposed Rulemaking, 19 FCC Rcd 22943, 22967 (2004).

Indeed, the advocates who argue in favor of regulation have not been able to point to any remotely recent commercial launches of interactive advertising to children.36

V. DISNEY TAKES A HOLISTIC APPROACH TOWARDS ENSURING ONLINE SAFETY, FROM EDUCATIONAL EFFORTS TO DESIGNING SAFE ONLINE PRODUCTS

The Notice of Inquiry stresses the need for media literacy, especially in the online

environment, and many commenters echo those concerns.37 More recently, the FCC

released its National Broadband Plan, which emphasizes the need for extensive parental

and family education to help families feel more comfortable with bringing broadband into

their homes.38 As discussed above, Disney is committed to providing enriching content

for children and educating parents and children about how to be safe in the digital era, most recently through the launch – with Common Sense – of on-air and online campaigns designed to do just that.39

Importantly, Disney’s commitment to online safety goes well beyond parental and

family education. Specifically, Disney is committed to designing our online content and

products with safety in mind. Club Penguin illustrates this commitment. Club Penguin is

a snow-covered online virtual world where children can play games and hang out with

friends. Club Penguin uses a variety of tools, including both aggressive chat filters (both

black and white lists) and live moderators to monitor chat and activity on the site to avert

36 See, e.g., Comments of Children’s Media Policy Coalition. 37 See, e.g., Comments of the Center for Media Literacy; Comments of Common Sense Media, at 5-8; Comments of the Internet Keep Safe Coalition, at 10-19; Comments of the National Association of Broadcasters, at 2-3; Comments of National Cable & Telecommunications Association, at 18-20; Comments of National Association for Media Literacy Education and the Media Education Lab at Temple University. 38 See infra note 16 and accompanying text. 39 See infra at page 13-14.

the sharing of inappropriate or personally identifiable information. A parent’s e-mail

address is required to create a penguin, and parental permission is required in order to

activate an account and allow play within the virtual world. Parents also can create their

own account, which allows them to log on and view their child’s account history, change

their child’s password, choose a more or less restrictive chat mode and set the time of day

and duration of their child’s visits to Club Penguin.

Disney Fairies is another example of Disney’s commitment to safe online

products. Disney Fairies is an online immersive world where players (“Guests”) can

create their own personalized Fairy and interact with one another. Guests can chat, use

emoticons and work with other Fairies within the online world to accomplish group tasks

and quests. Guests are encouraged to follow rules and to encourage others to do the same.

In efforts to ensure safety in chatting, Disney leverages a sophisticated combination of

live human moderators and highly specialized technology tools designed to protect

Guests and their privacy while permitting communication and social interaction. For example, the moderation tools filter every message to allow only pre-approved, white-list words and block attempts to communicate problem phrases and personally identifiable information.

As should now be clear, Disney uses a variety of online safety tools, while at the same time building content that limits and/or avoids opportunities for children to exchange personal information. Turning to specifics, Disney’s online safety toolkit includes:

• Moderation and Filters. Dedicated teams monitor use of sites, looking for attempts to exchange personally identifiable information as well as other inappropriate behavior. With worldwide real-time human moderation teams and regularly-updated software filters, we then enact progressive 29

disciplinary action for rule offenders and will contact relevant governmental authorities when necessary. • Parental Involvement. Disney believes that caregiver involvement is one of the most important tools to keep children safe online. Accordingly, we provide multiple levels of parental controls that allow parents to determine the amount of chat functionality available to their children. Disney Online provides safety guidelines and information for parents and children to review together. This information highlights how to behave when interacting socially online. • Children’s Privacy Policy. Disney recognizes the need to provide special privacy protections when children visit our sites. For this reason, in addition to our overall online privacy policy, we have created a “Kids’ Privacy Policy” posted on Disney sites geared to children. This policy is designed to answer questions regarding our privacy policies and principles with respect to children under the age of 13. • Online Environments. We aim to create online environments that are Disney story-driven and provide context for appropriate online conversations. These environments are specially designed to make inappropriate behavior easier to recognize. We believe that within the context of stories, there are ample opportunities for rich interactive experiences that are safe and fun.

Even with all these tools at our disposal, there is no silver bullet when it comes to protecting kids online. Accordingly, it is imperative that parents and caregivers always monitor their children’s activities online. After all, this is an area where technology evolves at lightning speed and it is vital to adapt rapidly to these changes. Given

Disney’s continued commitment to and leadership in online safety initiatives, Disney would be pleased to continue to work with the Commission as the FCC looks to highlight best practices in this area. However, given the pace of technological change and the

limits on the FCC’s jurisdiction over the Internet, Disney agrees with commenters that the

Commission should not – and cannot – adopt regulations in this area.40

VI. A FINAL NOTE ON AUTHORITY AND FIRST AMENDMENT

As stressed throughout these Reply Comments, Disney appreciates and supports

the Commission’s concerns for empowering parents and educating children regarding

digital media. Indeed, the health and well-being of children is at the very heart of The

Walt Disney Company. However, like many commenters, Disney respectfully submits

that many of the regulatory questions raised by the Commission, including those

involving online safety, video games and advertising, fall outside of the Commission’s

statutorily limited jurisdiction.41 With respect to content issues, as commenters have

demonstrated, many of the questions raised by the Commission in the Notice of Inquiry

40 See, e.g., Comments of the Entertainment Software Association, at 3 (“The Commission’s limited jurisdiction over the Internet and other communications platforms for certain purposes does not constitute a grant of carte blanche authority over those who utilize those platforms.”); Comments of Google, Inc., at 8 (“While there may be a temptation to go further and adopt actual regulations, the Commission’s statutory jurisdiction to regulate broadcast television does not extend to Internet content and media online.”); Comments of The NetChoice Coalition, at 6 (“While NTIA and FTC are active in promoting online safety, we believe that the FCC lacks jurisdiction to regulate online media platforms. Neither the Telecommunications Act of 1996 nor the Children’s Television Act of 1990 provides the Commission with the authority to regulate online media content.”); Comments of the Progress & Freedom Foundation & The Electronic Frontier Foundation, at 3-7 (explaining that the FCC has no jurisdiction over Internet media). 41 Id. See also, Comments of Activision Blizzard, Inc., at 32-37 (explaining that the FCC lacks express or ancillary jurisdiction over video games); Comments of Media Coalition, at 4 (“there is no basis for, nor do we think the NOI suggests, the proposition that the FCC has any statutory authority to regulate in any way other media that might be considered “electronic media,” such as video games, DVDs, CDs and electronic books or the hardware used to access them.”).

(such as those relating to the quality of children’s programming and the content of programming and advertising directed to adults) raise serious First Amendment questions.42 Although other comments more comprehensively address these points, most

specifically those filed by Media Coalition, Disney reiterates here that we fully share

those concerns.43

VII. CONCLUSION

The record in this proceeding evidences the significant efforts of media providers

to empower parents and educate children in the ever-evolving digital media age. Indeed,

as discussed throughout these Reply Comments, Disney takes very seriously its responsibilities to provide children with both compelling video programming and safe online media experiences. A wide variety of industries, from media providers to web publishers, has similarly developed creative and successful initiatives to educate parents,

without governmental mandates. As a result, additional regulation by the FCC is not

warranted. Moreover, as the record in this proceeding makes clear, there are significant

42 See, e.g., Comments of Activision Blizzard, Inc., at 37-42; Comments of Google, Inc., at 3 (“the Commission must recognize the importance of allowing for full and free expression for adults consistent with a robust marketplace of ideas and the First Amendment”); Comments of the National Association of Broadcasters, at 16 (urging the FCC to consider limitations imposed by the First Amendment); Comments of The NetChoice Coalition, at 6 (“we believe there would be serious first amendment implications” of FCC attempts to impose regulations on Internet content); Comments of Media Coalition, at 2 (“It is important to remember . . . that minors have a First Amendment right to see and hear media except in very narrow instances.”); Comments of the Progress & Freedom Foundation & The Electronic Frontier Foundation, at 7-11. 43 See generally, Comments of Media Coalition.

32 jurisdictional and constitutional impediments to the enactment of additional regulations over media content (including advertising) in the name of protecting children.

Respectfully submitted,

/s/ Susan L. Fox__ Susan L. Fox Vice President The Walt Disney Company 425 3rd Street SW, Suite 1100 Washington, DC 20024 (202) 222-4700

/s/ Dvora Rabino__ Dvora Rabino Vice President, Law & Regulation ABC, Inc. 77 West 66th Street New York NY 10023 March 26, 2010 (212) 456-7185