Spain’s Mediaset will have to pay Telefónica over €60 million a season if its pay-TV service MiTele Plus is a success.
According to El Economista, the small print in the contract it has signed with the telco commits it to make a minimum payment of €20 million a season, with the amount rising depending on the number of susbcribers MiTele Plus secures.
MiTele Plus is the first and only online service in Spain to offer coverage of LaLiga, Champions League and Europa League without being linked to a telco. As a result, it is competing with the likes of Telefónica and Orange for football fans with only content, as opposed to also the internet, telephony and TV channels.
Mediaset is charging customers €35 a month for MiTele Plus, which is in line with market rates.
Should the service secure 270,000 subscribers in the first year, it will have to pay Telefónica over €60 million.