Business

Posted: Fri., Sep. 12, 1997

Prisa makes D.C. plea

CEO says Spain threatens digital deals

WASHINGTON --- Grupo Prisa CEO Juan Luis Cebrian took his company's epic digital TV battle with the Spanish government to Washington Thursday, where he warned that efforts to eliminate his company's exclusive soccer deals could spell trouble for similar agreements with U.S. programming giants Disney, Warner Bros. and Universal.

Prisa, a Madrid-based media conglomerate, is currently locked in a struggle with the Spanish government over its efforts to offer viewers a digital satellite service called CanalSatelite Digital. The satcaster, which launched earlier this year, is offering a total of 25 channels. Currently Spanish viewers have access to only five TV channels.

Since Grupo Prisa and its French partner Canal Plus launched the new satcasting service in January, the Spanish parliament has tried to outlaw the company's transmission technology and it is also attempting to outlaw its exclusive $120 million deal for soccer rights.

In addition, the center-right government headed by Jose Maria Aznar is nurturing a rival digital TV company that is backed by Spain's formerly state-owned telephone company Telefonica, the Spanish government's TV network RTVE and Mexico's mega-TV group Televisa. Aznar contends he is trying to promote competition in the Spanish TV market.

In a speech to reporters Thursday, Cebrian said the effort to break Prisa's exclusive hold on soccer rights could lead to a similar effort to sink his company's exclusives with Hollywood studios including DreamWorks, Disney and Warner Bros. Intl. Television.

"(U.S.) movie companies have good reason to be concerned," said Cebrian, who added the company also is fighting the action at the European Commission.


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