TVE's new financing law approved
Spain's Senate has approved public broadcaster TVE's new financing law which includes the cessation of advertising.
While the socialists applauded the approval as they make up the government, the oposition party, the PP, critiziced the fact there is no order in the country's audiovisual field because there is not an Audiovisual Law.
With this new law which is to be operative starting from September, TVE's budget will be limited to €1,200 million until 2011 and it will grow a maximum of 1% a year from 2012 to 2014. At the same time the national public broadcaster's budget will have a complementary fund with the income surpassing the cost of the public service.
The taxes imposed on the telecommunications sector have been one of the most controversial points of this law. The last modification of the text was produced in Parliament where a limit on this was agreed in order to avoid disproportionate payments in the future. Telcos will have to allocate 0.9% of their revenues (when they don't surpass 25% of RTVE's yearly budget). In the case of the national private broadcasters their allocation will be 3% of their yearly budget (a limit of 15% in their case). Pay TV broadcasters’ tax will be 1.5% of revenues (with a limit of 20%).
From the ad ban point of view, it is likely the public broadcaster will start cutting down on ads from September. Although by law it would have to apply a total suppression, contracts still running with advertisers will previent TVE from doing so. But from January on there will not be a single advertisement on TVE.