Brazil approved the creation of Newco, joint-venture between SBT, Record and RedeTV

 

The court of the Administrative Council of Economic Defense (CADE) of Brazil approved, with some restrictions, the creation of Newco, a partnership between public television stations SBT, Record and RedeTV, which must act in content creation and negotiation of the signals of these stations with Pay-TV operators.

 

According to local magazine Veja, the companies are required to invest in the joint-venture, give subsidies to small and medium Pay-TV operators and to invest products in this market. CADE set a deadline for the company lasting six years, to be counted from the signing of the first contract with a major company. It will also have access to the business plan and annual reports from Newco.

 

With the creation of Newco, the three companies seek greater negotiating powers for selling their digital channels to pay the television operators once the migration to digital television is completed.