×
You will be redirected back to your article in seconds

EchoStar, Vivendi Break Off Talks for Joint Venture in Brazil

Vivendi’s GVT to go its alone, building its Brazilian telco, pay TV biz

U.S. satellite service giant EchoStar Corp, and Brazil-based telco Global Village Telecom (GVT), a subsid of France’s Vivendi, have nixed talks to create a joint pay TV venture in Brazil.

Confirming the end to talks in a brief statement Friday, Vivendi stated that it would now pursue pay-TV growth in Brazil on its own.

Announced in October, the EchoStar-GVT partnership would have seen EchoStar yoking its Englewood satellite transmission technology with Vivendi’s communications network, giving EchoStar a foothold in the market and allowing Vivendi national coverage for its GVT pay TV service.

GVT’s operations are currently limited in Brazil to 146 cities and towns. As a telco, owned by Vivendi from 2009, GVT has focused on rolling out its high-tech fixed-line telco service in Brazil, offering pay-TV – where all subscribers receive HDTV – as part of a triple-play package.

“GVT has the cost structure of a telco, so each additional subscriber has to generate enough revenue to justify the cost of connection. It’s not like a satellite company where the cost of adding new clients is very low,” said Francois Godard, at Enders Analysis.

Limited in its geographical reach, GVT total pay TV subs, 530,000 June-end 2013, pale in Brazil before those of both the Carlos Slim-owned America Movil (9 million subs) and DirecTV (5.2 million). GVT also lags behind Rio de Janeiro-based Oi (889,900).

Partnering Mexican company MVS Comunicaciones, EchoStar co-owns Dish Mexico, which has run up 2.3 million subs in five years.

The end of talks with EchoStar raises the question of what future there is for GVT in a new-look Vivendi that is restructuring as a media company based around its Canal Plus and Universal Music Group (UMG) assets.

“We don’t think the future of GVT is within the Vivendi group. It looks to be in the consolidation of the Brazilian pay-TV market,” Godard said.

More TV

  • Bohemian Rhapsody

    'Bohemian Rhapsody,' 'Marvelous Mrs. Maisel' Among Cinema Audio Society Winners

    Queen biopic “Bohemian Rhapsody” won the Cinema Audio Society’s top prize for sound mixing at Saturday night’s 55th annual CAS Awards. The film is Oscar-nominated for sound mixing this year along with “Black Panther,” “First Man,” “Roma” and “A Star Is Born.” In a surprise over heavy-hitters “Incredibles 2” and “Spider-Man: Into the Spider-Verse,” Wes [...]

  • Marvelous Mrs Maisel Vice

    'Vice,' 'The Marvelous Mrs. Maisel' Lead Make-Up and Hair Stylists Guild Awards Winners

    Adam McKay’s Dick Cheney biopic “Vice,” starring Oscar nominees Christian Bale, Amy Adams and Sam Rockwell, won two awards at the sixth annual Make-Up and Hair Stylists Guild Awards Saturday night. The film won for best period and/or character makeup as well as special makeup effects. “Mary Queen of Scots” received the prize for period [...]

  • Jussie Smollett Good Morning America

    Jussie Smollett Angrily Denies Complicity in Attack

    Attorneys for “Empire” actor Jussie Smollett issued a statement Saturday denying that he orchestrated his Jan. 29 assault, and saying he is “angered” and “devastated” by recent developments in the case. Chicago police want to interview Smollett, after learning new evidence from two Nigerian brothers who were released on Friday night. Local media outlets have [...]

  • Jussie Smollett Empire

    Chicago Police Want to Talk to Jussie Smollett as New Evidence Emerges

    Chicago police are seeking to re-interview “Empire” actor Jussie Smollett, after new evidence emerged in his alleged assault. Smollett has claimed that two men attacked him at 2 a.m. on Jan. 29, yelled racial and homophobic slurs, poured bleach on him, and put a noose around his neck. The Chicago Police Department has consistently said [...]

  • Five Takes on Canal Plus, Federation’s

    Just Days Left to Catch Canal Plus’ ‘The Bureau’ on MyFFF

    The most lauded of titles on this year’s MyFrenchFilmFestival, UniFrance’s online showcase featured by over 50 OTT services around the world, may not be a film but a drama series. With four seasons aired, and a milestone in world sales on a French TV show, slow-boiling espionage series ‘Le Bureau des légendes’ (“The Bureau”) is [...]

  • Walt Disney Archives Founder Dave Smith

    Walt Disney Archives Founder Dave Smith Dies at 78

    Walt Disney Archives founder Dave Smith, the historian who spent 40 years cataloging and preserving the company’s legacy of entertainment and innovation, died Friday in Burbank, Calif. He was 78. Smith served as Disney’s chief archivist from 1970 to 2010. He was named a Disney Legend in 2007 and served as a consultant to the [...]

More From Our Brands

Access exclusive content