DTS purchase conditions by Movistar extended for 3 more years

In April 2015, the purchase of DTS (Canal +) was approved by Telefónica to integrate its content as Movistar + channels. This agreement established some key points of mandatory compliance that would remain in force for 5 years, although they could be extended for an additional 3 years. We are in 2020 and those agreements were to expire, unless it was agreed to extend their effect until 2023. The National Commission of Markets and Competition (CNMC) has decided so. Although with some changes, Movistar will have to share its channels for 3 more years.

Some of the points that have given the most talk in recent years are the following:

  • Telefónica will make available to other pay television operators a wholesale offer of Premium channels (those that have exclusive premiere content of the Majors calls (Sony, FOX, Warner, Paramount Picture, etc.) or live sports events of the Football First Division League, SM King’s Cup football, Champions League, Europa League, World Football Championship, World Basketball Championship, Formula 1, Moto GP and the Olympics).
  • Each pay television operator will be able to access a maximum of 50% of the channels that integrate the wholesale offer and are free to choose how they compose their choice within this wholesale offer.
  • The prices of this offer will ensure the replicability of Telefónica’s retail offer and will prevent situations of narrowing margins.
  • Additionally, Telefónica undertakes to broadcast on its pay television platform, under certain conditions, the channels edited by third-party operators. The resulting entity may not acquire exclusive broadcasting rights for these channels edited by third parties.

Extension of conditions, but with nuances

The Commission confirms that all commitments are maintained for a maximum period of three years, except that relating to the exclusive acquisition of broadcast rights in Spain of non-sports audiovisual content released by third parties for broadcast on SVOD (Subscription Video On Demand ), which is deleted. For this reason, Movistar may in the coming years exercise purchasing power have an effect exclusionary in relation to rights for non-sports content on demand.

The commitment regarding the maintenance of the conditions applied in 2015 to the owners of third-party television channels is also adapted and those commitments related to the pay television market in Spain expressly subject to a term that has already expired disappear. Movistar may not terminate contracts in advance currently in force whose term of validity ends within the extension period.

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