Broadcasting giant TV Globo is a small (7 per cent) stakeholder in Sky Brazil which is controlled by DirecTV. Over the years Globo has won variations of the transmission licence which allows it to operate spin-off pay-TV systems in Rio de Janeiro and Sao Paulo. However, officially the law bans “sound and image” companies such as Globo from holding more than 50 per cent, either directly or indirectly, of any pay-TV enterprise.
Brazil’s National Telecommunications Agency has now suspended all adaptations of Sky’s licenses until these rules are met, and it is November 12 when the rules must be enforced.
The ruling is further complicated by the adoption of Conditional Access rules, which also come into force on November 12. These rules also state that holders of existing (non-CAS) licences cannot hold ‘new’ CAS licences.