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Watchdog fines DTS for failure to meet content spend threshold

Spanish regulator the CNMC has fined Telefónica-owned pay TV operator DTS €661,796 for failure to meet its obligations to finance European content creation in 2014.

The CNMC found that DTS, which formerly operated pay TV services under the Canal+ brand, was in breach of its obligations under the Spanish audiovisual communications law, which requires telecom operators that distribute TV services to allocate 5% of their operating income to finance European content. In the case of public companies, the amount is 6%.

The imposition of a file follows an investigation by the CNMC, opened in March, after its analysis of spending by operators for 2014 showed DTS falling short of its obligations to the tune of €7.4 million.

Telefónica, which has since acquired DTS and committed to a major programme of investment in drama series, spent €4 million in 2014, exceeding its obligation comfortably.

The CNMC’s analysis for 2015 also found DTS falling short of its required spend.