ABTA proposal welcomed only in part

José Augusto Pinto Moreira, president of ABTA, presented an outline of the proposed new pay-TV industry model and growth projections at the opening session of the association?s annual conference on Tuesday, October 15, in São Paulo. The key ideas include the creation of a standard basic package for all operators nationwide, the end of overbuilding and programming exclusivity, and digital infrastructure standardization and unification, as well as a number of changes in taxation, regulation and marketing. BNDES, Globo and News Corp., invited to discuss the proposal, expressed opposition to some items. Rômulo Pontual, representing News Corp., refused to countenance the end of exclusivity. Sky is entitled to offer differentiated programming, he said, adding that in his view the problems faced by most pay-TV companies are due simply to poor management. Sky?s rapid growth in September shows how much potential the Brazilian market still offers even under the present circumstances, he stressed. Eduardo Gentil, director of new product development at BNDES, said the national development bank is one of the largest investors in the industry today, with a portfolio of loans and/or equity worth almost 900 million Brazilian reals (now about 230m US Dollars). BNDES is a major shareholder in or lender to Net, TV Cidade, Acom and Horizon, among others, and will play a key role in financing local production of DTV equipment. According to Mr Gentil, it wouldn?t be appropriate for BNDES to influence the industry?s restructuring plans but its doors remain open to all worthwhile projects. ?The initiative must come from the industry,? he said. ?A consistent project has to specify who will execute it, who will manage it and what sources of revenue will be generated.? Jorge Nóbrega, a member of Globo?s board, said several items of the ABTA proposal are interesting but mentioned only overbuilding specifically. ?For us it?s important to find a solution to excessive competition. This is the point I would highlight in the ABTA proposal,? he said.