Brazil regulators spurn Galaxy’s claim on Globo

Competition ruled fair

RIO DE JANEIRO, Brazil — In a blow to satcaster Galaxy Brasil, Brazilian regulators ruled that it has no legal right to the signal of No. 1 broadcaster TV Globo.

TV Globo’s parent, Organizacoes Globo, is the lead investor in rival direct-to-home platform NetSat and its Sky Brasil DTH service. Globo had refused to allow Galaxy’s DirecTV to carry the channel; Galaxy alleged unfair competition in its complaint.

Galaxy argued that the rapid growth of its rival’s subscriber base could be attributed to the inclusion in the Sky package of broadcast channel TV Globo, which commands 50% of the total open TV aud in Brazil.

Regulators did not agree.

“We concluded the growth of Sky is due to its aggressive price policy,” said a spokesman from Anatel, the telecom regulatory agency. “Anatel understands TV Globo’s stand has not impacted the sector.”

Anatel expects that Brazil’s antitrust agency, Cade, will uphold its ruling.

Even with the economic slowdown in Brazil, both Sky and Galaxy’s DirecTV service have been adding subs at astonishing rates.

However, Sky has been growing faster and claims about 57% of the market as of late September.

But Galaxy is fighting back, last year inking an exclusive deal with HBO LatAm and negotiating for the Brazilian Disney Channel. It recently announced an exclusive pact for the upcoming Disney channel for Spanish-speaking markets.

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