Brazilian free-to-air channels SBT, Record TV and RedeTV! are planning to launch a new pay-TV channel in 2018, through its joint venture company Simba, reported the site UOL.
Simba is studying the contents of the new channel. One option would be a launching a channel featuring old programs of the broadcasters, a model used by Globo for its pay TV channel “Viva”. However, one of the obstacles would be to update the contracts and obtain the authorizations of the artists.
The joint-venture Simba (formerly Newco) was created to represent the interests of the three free-to-air channels. The company wants pay TV operators to start paying to broadcast their HD networks, which are currently included in the packages without any compensation. According to UOL, Globo is remunerated for its HD channel, so SBT, Record TV and RedeTV! seek the same conditions as the main broadcaster of the country.
People involved in the negotiations said that Simba wants to charge operators R$ 3 (USD 1) per month per subscriber, according to Folha de Sao Paulo. If no agreement is reached, the three channels could abandon the Pay TV lineups after the analogue switch-off in Sao Paulo took place next April.