The impending merger between the Telefonica-controlled Via Digital and Sogecable (Vivendi Universal/Prisa) has run into a barrage of concerns from Spain's cable industry just six weeks before it had been expected to gain approval from the Spanish government.
The cable industry, like its satellite rivals, is heavily in debt and resolute in their view that unless their operators are permitted access to such rights as the Primera Liga on 'non-discriminatory conditions' that the cable industry will have no future in the pay-TV sector.
Currently, all rights to the Primera Liga are controlled by Audiovisual, a triumvirate comprising Sogecable (40 percent), Telefonica (40 percent) and TV3 (the Catalan regional broadcaster in which Barcelona is situated) with 20 percent.
While the proposed merger (which the European Commission elected not to impose itself) is undoubtedly necessary given that both Via Digital (750,000 subscribers) and Canal Satelite (1.3 million) have run up huge debts, the terms under which government approval is forthcoming now seem certain to include sufficient 'protection' clauses to enable the cable operators to have access to Primera Liga matches - all of which are shown live via a mix of pay-TV and pay-per-view.
Such is the level of financial hardship being experienced in Spain's pay-TV market that no operator has even made a bid for the new Champions League contract which commences next season.
