Subscriptions setback for Spain's Digital Plus

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The Spanish Government has decided to veto plans by pay-TV group Sogecable, owner of Spanish digital satellite platform Digital+, to raise the subscription prices at Digital+.

The Government's right to intervene in its fee policy was part of the 34 conditions imposed on the merger between Sogecable-owned Canal Satelite Digital and Telefónica-controlled Via Digital. One condition was that Sogecable's prices would not be increased above the rate of inflation (minus a variable established by Spain's Telecommunications Market Commission) until 2006.

The decision will set back Sogecable's plans to turn Digital+ profitable by 2005 at a time when the company is now going through its first internal crisis. Differences over management of the company with the CEO Javier Diez de Polanco, forced Canal+ General Director and Digital+ Director of Content, Jose Manuel Lorenzo, to resign. Sogecable Director General Carlos Abad de Polanco's right-hand-man, will now be responsible for content at the platform.