MEXICO CITY, March 9, 2017 /PRNewswire/ -- Grupo Televisa, S.A.B. ("Televisa" or the "Company"; NYSE:TV; BMV:TLEVISA CPO) informs that, as part of a biannual review of the broadcasting sector preponderance rules, the Instituto Federal de Telecomunicaciones ("IFT") has notified a ruling that amends some of the existing preponderance rules in broadcasting and includes some additional obligations on Televisa and some of its subsidiaries (the "New Preponderance Measures"). The New Preponderance Measures maintain most of the measures previously ruled by IFT on March 6, 2014, but with certain modifications and additions, which include, among others, the following:
  • Sharing of Infrastructure - In addition to the previously imposed obligations regarding the sharing of passive infrastructure, the New Preponderance Measures have included the service of signal emissions in the event that no passive infrastructure exists. In addition, The New Preponderance Measures strengthen the supervision of the services provided by Televisa and the tariffs arrangements made with its clients, and include certain rules relating to the publicity of its tariffs.  A new electronic management system is also included as part of the new measures which will facilitate the access to certain information by users of Televisa's infrastructure as well as by IFT.
  • Prohibition to Acquire Certain Exclusive Content for Broadcasting - This measure has been modified by enabling Televisa to acquire relevant content under certain circumstances, as long as it makes available such rights for its sublicensing to other broadcasters in Mexico in non-discriminatory terms.
  • Advertising Services - IFT modified this measure mainly by including specific requirements to Televisa in its provision of over the air advertising services, particularly, to telecommunications companies. Such requirements include, among others: a) publishing and delivering to IFT specific information regarding tariffs, discount plans, contracting and sales terms and conditions, contract forms and other relevant practices; and b) terms and conditions that prohibit discrimination or refusal to deal, conditioned sales and other conditions that inhibit competition. Televisa will also have to provide very detailed information to IFT on a recurrent basis of over the air advertising services related to telecommunications companies.
  • Accounting Separation - Televisa will have to implement accounting separation methodologies that will be further regulated and defined based on certain criteria to be determined by IFT.

The New Preponderance Measures are being determined at a time when the broadcasting sector experiences fierce competition not only from new technologies and other audiovisual platforms (many of them not regulated by IFT), but also when a new national broadcasting network is actively competing in the market and gaining market share, and in the middle of a new auction of broadcasting stations in several geographical markets nationwide. Such increased competition, together with the regulatory measures imposed on the Company and our industry, have resulted in a decline in the operating margins of our Content division.

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