Sky, the only DTH operator that will carry the World Cup soccer finals, was evidently unhappy with the news that C-band satellite dishes will be able to receive Globo?s broadcast signal. Well-informed sources say the decree doesn?t help disseminate the image of pay TV as a source of valuable information. Others, however, retort that Sky had no plans to acquire C-band dish owners as customers anyway, seeing them as too much of a delinquency risk. The decree won?t have a negative effect on Sky?s financial situation, these sources claim. Sky Brazil is a joint venture between Fox and Globo.
Other observers consulted by PAY-TV News say the presidential decree is a small sample of the ease with which certain international rules ?can be broken, with a mere stroke of the pen?. However justified the move may be, C-band satellite encoding was part of a broader agreement that also involves DirecTV, Sky?s rival and the only pay-TV operator to hold the World Cup rights for Latin America other than Brazil. DirecTV now fears unfair competition from cable operators in neighboring countries, who will be able to pirate Globo?s broadcasts. According to observers, Fox wasn?t happy with the news either. It reportedly considers Globo?s lobbying for a Government measure to guarantee reception by C-band dishes as a ?slap in the face? for Sky. Analysts see the decree as positive for TV Globo, which thereby keeps 9 million dish owners happy.