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Strategy
Viana, CEO of Net: no to dollar pricing, must-carry, exclusivity
quinta-feira, 10 de outubro de 2002 , 17h21 | POR REDAÇÃO

In an exclusive interview published in the October issue of PAY-TV magazine Luiz Antônio Viana, CEO of Net Serviços, goes on the offensive against Sky, in which Globo is also a major shareholder. ?Sky is our biggest competitor,? he says, criticizing the DTH operator for what he calls ?predatory? practices such as offering A Muralha, a series originally broadcast by TV Globo, free of charge to a large proportion of Sky?s subscriber base. Mr Viana also says he?s opposed on principle to exclusivity as a competition strategy. Net would happily give up exclusivity rights if this meant cost savings and could be phased in so as to allow for adaptation.

Must-carry

While acknowledging the impossibility of doing away completely with must-carry, which exists everywhere in the world, he calls for maximum flexibility. And he lashes out at the practice of pricing content in dollars. ?We?re way out of line with international practice in terms of the ratio of programming cost to revenue,? he complains, taking an example from the movie industry. If theater tickets were priced in dollars in Brazil, no one would ever go to the movies because they would have to pay roughly three times more than the current price of a ticket. ?That?s not the case, of course. Theater tickets are priced realistically and affordably ? unlike programming prices,? he says. Mr Viana declares full support for ABTA?s initiative in pursuit of a new model for the pay-television industry but notes that the industry is ?disorganized? and says ?no association will be able to reorganize companies unless they want it to?.

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