Competition In Brazil Increases, Bummer For DirecTV

24-Dec-2011

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In September 2011, Brazil’s government passed a law that is expected to expand pay-TV services in the country. [1]

According to the law, local telephone companies and foreign players will be able to offer pay TV services along with mobile, fixed line and broadband. This was not the case until now and phone companies had to bundle their service with existing pay-TV providers.

What this essentially means is that the new law will spur the growth of pay-TV competition in Brazil, a significant market in Latin America for DirecTV.

While DirecTV has done better than its counterparts such as Dish Network and Comcast in the U.S., it has smartly tapped into the big potential that the Latin American market offers. However, with this new bill, the company’s fast paced expansion may be at threat, at least in terms of profits.

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