CNMC: DTS on notice for failure to meet content commitment

Spanish media regulator the CNMC has said it may sanction DTS – the pay TV outfit operating the Canal+ service that was acquired by Telefónica in 2014 – for failing to meet its obligations to finance European audiovisual content.

Under Spain’s audiovisual communication law, failing to meet this obligation can open companies up to fines of between €500,001 and €1 million.

Under the law, media and telecom companies that distribute TV channels are obliged to plough 5% of their operating income into content creation. Public companies have to contribute 6%.

Some 60% of the quota must be dedicated to theatrical films, of which 60% must be spent on Spanish-language content.

The CNMC said its opening of a file on the possible sanction of DTS’s failure to meet its obligations did not prejudice the final outcome of its investigation, which could take up to six months.