MEXICO CITY, March 9, 2017 /PRNewswire/ -- Grupo
Televisa, S.A.B. ("Televisa" or the "Company"; NYSE:TV; BMV:TLEVISA
CPO) informs that, as part of a biannual review of the broadcasting
sector preponderance rules, the Instituto Federal de
Telecomunicaciones ("IFT") has notified a ruling that amends some
of the existing preponderance rules in broadcasting and includes
some additional obligations on Televisa and some of its
subsidiaries (the "New Preponderance Measures"). The New
Preponderance Measures maintain most of the measures previously
ruled by IFT on March 6, 2014, but
with certain modifications and additions, which include, among
others, the following:
- Sharing of Infrastructure – In addition to the previously
imposed obligations regarding the sharing of passive
infrastructure, the New Preponderance Measures have included the
service of signal emissions in the event that no passive
infrastructure exists. In addition, The New Preponderance Measures
strengthen the supervision of the services provided by Televisa and
the tariffs arrangements made with its clients, and include certain
rules relating to the publicity of its tariffs. A new
electronic management system is also included as part of the new
measures which will facilitate the access to certain information by
users of Televisa's infrastructure as well as by IFT.
- Prohibition to Acquire Certain Exclusive Content for
Broadcasting – This measure has been modified by enabling Televisa
to acquire relevant content under certain circumstances, as long as
it makes available such rights for its sublicensing to
other broadcasters in Mexico in
non-discriminatory terms.
- Advertising Services – IFT modified this measure mainly by
including specific requirements to Televisa in its provision of
over the air advertising services, particularly, to
telecommunications companies. Such requirements include, among
others: a) publishing and delivering to IFT specific information
regarding tariffs, discount plans, contracting and sales terms and
conditions, contract forms and other relevant practices; and b)
terms and conditions that prohibit discrimination or refusal to
deal, conditioned sales and other conditions that inhibit
competition. Televisa will also have to provide very detailed
information to IFT on a recurrent basis of over the air advertising
services related to telecommunications companies.
- Accounting Separation – Televisa will have to implement
accounting separation methodologies that will be further regulated
and defined based on certain criteria to be determined by IFT.
The New Preponderance Measures are being determined at a time
when the broadcasting sector experiences fierce competition not
only from new technologies and other audiovisual platforms (many of
them not regulated by IFT), but also when a new national
broadcasting network is actively competing in the market and
gaining market share, and in the middle of a new auction of
broadcasting stations in several geographical markets nationwide.
Such increased competition, together with the regulatory measures
imposed on the Company and our industry, have resulted in a decline
in the operating margins of our Content division.
The foregoing, along with the adverse effects and restrictions
derived from the must offer rules upon the Company, have certainly
increased the regulatory burdens we are subject to. None of the
above seem to have been taken into account by the regulator when
issuing the New Preponderance Measures.
Therefore, Televisa will continue to assess the extent and
impact of this ruling and will analyze carefully any actions and/or
remedies (legal, business or otherwise) that Televisa should take
and/or implement regarding the same.
About Televisa
Televisa is a leading media company in the Spanish-speaking
world, an important cable operator in Mexico and an operator of a leading
direct-to-home satellite pay television system in Mexico. Televisa distributes the content it
produces through several broadcast channels in Mexico and in over 50 countries through 26
pay-tv brands, and television networks, cable operators and
over-the-top or "OTT" services. In the
United States, Televisa's audiovisual content is distributed
through Univision Communications Inc. ("Univision") the leading
media company serving the Hispanic market. Univision broadcasts
Televisa's audiovisual content through multiple platforms in
exchange for a royalty payment. In addition, Televisa has equity
and warrants which upon their exercise would represent
approximately 36% on a fully-diluted, as-converted basis of the
equity capital in Univision Holdings, Inc., the controlling company
of Univision. Televisa's cable business offers integrated services,
including video, high-speed data and voice services to residential
and commercial customers as well as managed services to domestic
and international carriers through five cable Multiple System
Operators in Mexico. Televisa owns
a majority interest in Sky, a leading direct-to-home satellite pay
television system in Mexico,
operating also in the Dominican
Republic and Central
America. Televisa also has interests in magazine publishing
and distribution, radio production and broadcasting, professional
sports and live entertainment, feature-film production and
distribution, and gaming.
Disclaimer
This press release contains forward-looking statements regarding
the Company's results and prospects. Actual results could differ
materially from these statements. The forward-looking statements in
this press release should be read in conjunction with the factors
described in "Item 3. Key Information – Forward-Looking Statements"
in the Company's Annual Report on Form 20-F, which, among others,
could cause actual results to differ materially from those
contained in forward-looking statements made in this press release
and in oral statements made by authorized officers of the Company.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Relations:
Carlos
Madrazo / Tel: (52 55) 5261
2445 / cmadrazov@televisa.com.mx
Media Relations:
Alejandro
Olmos / Tel: (52 55) 4438 1205 /
aolmosc@televisa.com.mx
María Eugenia Zurita / Tel:
(52 55) 52 24 63 60 / mezurita@televisa.com.mx
www.televisair.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/results-of-ift-biannual-preponderance-review-of-the-broadcasting-sector-300421180.html
SOURCE Grupo Televisa, S.A.B.