Chile: “Bundled Sales” cause controversy in pay TV

Cable and satellite TV operators in Chile have accused content creators, such as Fox and HBO, of pursuing a ‘bundling’ strategy for the sale of their programmes, which could lead to price increases. The Content creators have stood firm, arguing that this sale strategy is legal and legitimate.

Traders have criticized the practice of selling packages consisting of, for example, 10 channels at a time. This, cable providers say, prevents greater diversification of TV shows on offer and affects prices, as they are forced to pay for unwanted products.

Consulted on this topic, communications regulator Subtel said that it has no part to play in this matter. “The relationship between the content provider and the operator is alien to this eminently technical entity.” In fact, it corresponds to the National Economic Prosecutor’s Office, so long as it affects free competition.

Sources close to content creators have discarded the version presented by cable and TV providers, arguing that, in practice, there is no room for large price increases either for operators or for consumers, as the rise of digital platforms has increasingly turned their industry more competitive.

Full Content: Economia y Negocios

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