Fjarskiptostofa Rules in Favor of Síminn’s Broadcast Request for Open TV Channel Sýn
Fjarskiptostofa (FST) has declared that Síminn’s request to carry the open TV channel Sýn in its television distribution system is reasonable and consistent with the requirements set out in Article 45 of the Media Act.
The agency also concluded that Síminn won’t be charged for broadcasting this free channel — such fees simply aren’t supported by Article 47 of the Media Act. Sýn carries a range of programming, from news to entertainment, and has a broad audience across the country.
FST announced the decision yesterday on its website. It follows an earlier ruling from November 5, which also went in Síminn’s favour. In that case, FST found that Síminn should be permitted to broadcast Sýn’s subscription-based sports content — which includes English football — provided a fair fee is paid for transmission. That fee is grounded in Article 47, which specifically covers compensation for subscription channels.
A Matter of Fair Compensation
Central to the dispute was Sýn’s request that FST set a fair fee for Síminn’s transmission of the free channel. FST made clear that Article 47’s compensation provisions apply only to subscription channels — those that require viewers to pay — not to open channels available to anyone.
“The significant distinction between these two cases lies in the nature of the channels involved,” FST noted. “Yes, we’re dealing with an open channel here, while the other case involves subscription content.” For close to two decades, agreements between media companies like these have often involved money changing hands, with one side paying the other for broadcasting rights.
Historical Context
Sýn has historically paid Síminn tens of millions of ISK each year for the right to carry its content. Following FST’s ruling, Síminn stopped making those payments for Sýn’s open channel. Síminn now carries the channel at no cost — while Sýn, for its part, is pushing for Síminn to pay to keep broadcasting it.
Worth noting: Síminn does pay Sýn to carry its own open TV channel through Sýn’s distribution network, an arrangement that predates the current dispute.
No Precedents in Sight
FST also said it is not aware of any case — in Iceland or elsewhere — where a telecoms company has been required to pay a media provider for carrying an open TV channel. The standard practice has long been for media providers to absorb the cost of distribution. The logic is straightforward: wider reach benefits advertisers and sponsors, who effectively subsidise the channel in place of subscription income.
Around 40,000 households use Síminn’s IPTV system, and many of them watch Sýn’s news programming every day. The ruling is likely to shape how broadcasting rights and media distribution work in Iceland going forward.
