Business Notes Cable Tv

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.

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.

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."