Televisa ‘too dominant’ in Mexico

Mexico’s pay TV sector could be set for major reform after the country’s media regulator ruled that one of its biggest broadcasters was too dominant in the market.

The Federal Telecommunications Institute (IFT) made a preliminary decision that Grupo Televisa had substantial power in the pay TV sector, paving the way for similar reforms to those undertaken in the free-to-air sector.

The ruling is subject to board approval and could have widespread ramifications for the broadcaster, which has a competitive advantage in more than 2,000 pay TV markets in the country, according to the IFT.

Televisa has nearly 10 million subscribers and has been in acquisition mode over recent months, buying Telecable in January and Cablecom late last year.

Mexican president Enrique Peña Nieto has been attempting to break up the concentration of power in Mexico’s TV industry since his election, with the market dominated by Televisa and TV Azteca.

Just last week regulators handed out licences for two new broadcast networks to increase FTA competition. Cadena Tres and Grupo Radio Centro are now preparing to launch channels, with the licences costing 1.81bn pesos (US$117m) and 3.1bn pesos respectively.