U Pay TV inks with Latin Galaxy PPV

Finally make non-exclusive pay-per-view output deal

MIAMI — Universal Studios Pay TV has pacted at last with satcaster Galaxy Latin America on a non-exclusive pay-per-view output deal.

The announcement comes more than a year after most other studios inked output deals with Hughes-backed GLA, and Universal has still to sign with rival Latino DTH player Sky.

Only Paramount is tarrying longer, though a deal between that studio and GLA is likely for next month, sources said.

The two-year Universal deal includes a minimum guaranteed buy-rate that varies by film; such guarantees are standard in Latin America.

“We’ve never had a problem with meeting the buy-rates since we started,” GLA’s programming VP Alberto Ennis told Daily Variety.

Ennis added that GLA likes two-year deals — rather than studio-preferred five-year agreements — due to the immature nature of the DTH market.

The PPV windows GLA has negotiated tend to start three to six months after homevideo release, and Ennis would like to see these windows shorten before he commits to longer-term deals.

GLA is independently estimated to have about 60% of Latin America’s 600,000 DTH subscribers, with Sky, a News Corp.-Televisa-Globo alliance, claiming most of the rest.

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