Let me get this straight
Viacom, Disney, Sinclair, etc can demand an MSO to carry all stations that they offer at a particular distribution level, but the MSO can't demand those producers limit their availability? And we are ok with this on both sides?
So Disney says you have to carry ABC, ESPN, ESPN2 ABC Family, and god knows what else. ABC has to be carried on basic which all subscribers have. ESPN must be carried on Expanded, which is not as many as Basic but still more then a digital tier. ESPN2 must be carried on a digital Tier, ESPNU can be carried on a sports tier. Disney doesn't care where you place ABC Family, but you got to take it anyway. Disney will give you ABC, ABC Family relatively cheaply, but you are going to pay out the wazoo for ESPN, ESPN2, and ESPNU for every subscriber on that tier regardless if they actually watch that channel or not.
Why can't an MSO say ok, if I got to carry all these stations on a tier and pay you for those customers regardless if they actually watch those channels, you can not offer those channels online?
I really don't see a problem here. Disney makes far more from the MSO's then they'd make from offering these channels online ala carte.