Subscription TV

The Brazilian subscription TV sector never lived up to the high expectations held by initial investors and media companies when this medium debuted in the late 1980’s. Overbuilding, expensive programming, significant acquisition costs, intense competition and poor capitalization were all contributors to the problems faced by the Subscription TV industry. Over the past few years the key players have tendered for and restructured their debt, injected significant capital and capitalized inter-company debt obligations.

The industry is comprised of a number of players offering one or more technologies (Cable, Satellite, MMDS, C-Band and Ku-Band). While Net has incorporated a number of regional players in the recent past, further consolidation leading to a greater rationalization of the industry is expected.

Telefinance and its partners have been active in advising the main players in this sector:

• Structuring financing and participating in refinancings of debt obligations of subscription TV companies.
• Preparing credit reports on the major subscription TV companies in Brazil, El Salvador, Argentina, Mexico, etc. for equipment suppliers and insurance providers.
• Preparing a consulting study on the sector to anticipate probable future capital market price movements.
• Restructuring of a SEC-registered high yield bond for a Brazilian subscription TV company.