Advanced Television

UTECA demands new TV action plan

May 7, 2008

From David Del Valle in Madrid

The Private TV Association UTECA has urged the new Administration to implement a new action plan over the Spanish TV industry, approved by consensus with the opposition, to guarantee the “viability” of the TV sector.

The main reform, says UTECA, should be made in the public television by gradually reducing its advertising revenues to avoid unfair competition in the market (as the public TV stations are financed by a mix of ad revenues and state subsidies). “If no measures are taken, we are going to suffer from the consequences”, said Alejandro Echevarria, president of UTECA. He explained that today the ad market amounts to E3.3 billion, of which E1.2 billion goes to public television (financing 37 per cent of its operation costs), giving rise to a “non-viable business model”.

Echevarria also asked the Administration to ban public TV from offering pay-TV services on DTT and urged to lift the obligation of a minimum DTT coverage of up to 96 per cent, limiting it to 90 per cent and the rest being financed by Government.

He also demanded new overall TV legislation for the whole sector and urged the Government to lift the obligation to dedicate 5 per cent of TV’s revenues to cinema productions

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