The announced purchase of Canal + by Telefonica, which already owns 22% of the company today, would create a great video company that rivals the operator no doubt want to curb. It is not that Movistar will meet with much of the cake of pay-TV in Spain, but is also a matter of rights and channels.
This concentration of rights that would occur, Movistar currently exclusive with all the World Championship and the rights of payment for the formula 1 and Canal + with the Champions League, It seems that the CNMC not shall it be very easy as they say in the confidential. Conditions that could void the transaction in the case of being very strict.
Telefonica and Movistar brand has a clear ambition, becoming a company video. In that sense it has been doing with various sports rights, even creating own channels. The company knows that this is the weakest point of his rivals, not television itself but the price of the sports content, so the purchase of Canal + is totally strategic.
In addition to staying with Canal + Liga and Canal + Champions League, although the rights of the Champions League will be Gol TV in the 2015 season / 2016, Movistar would have a clear advantage: to offer pay-TV where fixed coverage not permitted by satellite. A strategy but the CNMC seems to be willing to allow in any way.
Wholesale access, the possible option of the CNMC
Since Europe is left in the hands of the CNMC purchase process monitoring, which in principle would encourage Telefonica by the usual hardness of the Commission, seems that the company won’t have it as easy as they could expect in the beginning, according to sources knowledgeable of the process in the confidential statements.
The process is still at a very early time and will last for months, but the idea seems to be that it would happen because Movistar/Telefonica would have to give wholesalers access to rivals to part of the content of the platform for Canal +. The most worrying part would be the of possible openness to other operators of channels that broadcast exclusively in League or Cup matches.
The sports content is precisely that usually motivate many engagements pay television by which the obligation provide wholesale access to sports channels would be a hard stick to the transaction. In fact, according to the same sources, and Movistar the option to cancel the purchase opened quietly If the conditions are harsh, upon payment of 58 million euros Prisa.
Yet it seems that this matter will go for long, you meet minimally the CNMC knows his speed for these things, but from Movistar, they should not be very quiet.