Vivendi’s GVT abandons plan for pay TV joint venture

Vivendi’s Brazilian subsidiary GVT has ended discussions with US DTH provider EchoStar about launching a joint pay TV venture in South America’s largest country.

Vivendi said that it remains “firmly committed to accelerating the deployment of GVT’s pay TV business” and that  “GVT will be pursuing its active growth development in this field by its own”.

The partnership between GVT and EchoStar was announced just over two months ago. The pair planned to create a pay TV platform ahead of next year’s World Cup that would be controlled by GVT and would have made use of the its IP network as well as EchoStar’s expertise in satellite technology and video. EchoStar would also have contributed its licences in the country to create a hybrid platform delivered over the internet and via satellite.

GVT and EchoStar plan pay TV joint venture in Brazil

ENGLEWOOD, Colo. — Vivendi and EchoStar Corp. (NASDAQ: SATS) announced today that EchoStar Technologies LLC and Vivendi subsidiary GVT have entered into negotiations to form a joint venture for pay TV services in Brazil.

GVT and EchoStar aim to position their future joint venture as a leader in the fast growing Brazilian pay TV market which would also benefit from the expected higher demand driven by two key global events to be held in the country: FIFA World Cup in 2014 and Olympic Games in 2016.

The joint venture would be headquartered in Brazil, managed by GVT, and would benefit from GVT´s strong market position and state-of-the-art IP network combined with EchoStar´s expertise in satellite and video technology and its Brazilian licenses. The objective is to offer a national service based on IPTV and a unique high power satellite to provide leading edge features, quality and reliability to consumers.

The deal is subject to execution of definitive agreements and all corporate and governmental approvals.