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Approval of new audiovisual rules is vital to health of pay TV
quinta-feira, 04 de abril de 2002 , 16h28 | POR REDAÇÃO

The flow of funds between operators and programmers has simply dried up since the Brazilian real depreciated in 2001, triggering complex negotiations on pricing. Operators say the situation was aggravated by the rumpus created when Ancine announced its draft rules on programming. According to industry observers, unless the Provisional Measure that lays down the rules for programmers to be accredited by Ancine (MP 17) is passed quickly by Congress, operators will continue to withhold payment of Condecine tax, following legal advice. Meanwhile Globo Cabo, Brazil?s largest MSO, is out of cash because of its heavy debt. The result is a stalled market. The situation will improve once the flow of funds from operators to programmers is resumed. That?s why MP 17 needs to pass Congress next week. The measure will also stimulate local production, although its effects won?t be visible for six months to a year. The capitalization of Globo Cabo and its new strategy are also expected to inject dynamism into the market, hopefully starting next month when Globo Cabo launches a road show on its plans for expansion.

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