Fjarskiptostofa Rules in Favor of Síminn’s Broadcast Request for Open TV Channel Sýn
In a move welcomed by many, Fjarskiptostofa (FST) has declared that Síminn’s request to include the open TV channel Sýn in its television distribution system is not only reasonable but also aligns with the stipulations outlined in Article 45 of the Media Act.
Moreover, the agency concluded that Síminn will not incur additional fees for broadcasting this free channel, as such charges are not supported by Article 47 of the Media Act. Sýn offers a variety of programming, including news and entertainment content, which viewers widely appreciate.
This decision, announced yesterday on FST’s website, follows a previous ruling from November 5, which also favored Síminn. In that instance, FST affirmed that Síminn should indeed be allowed to broadcast Sýn’s subscription-based sports content, which features popular offerings like English football, provided that a fair fee is paid for its transmission. This fee is justified under Article 47, which explicitly addresses compensation for subscription-based channels.
A Matter of Fair Compensation
A key issue at the heart of this matter involves Sýn’s request for FST to establish a fair remuneration for Síminn’s transmission of the free channel. The agency clarified that Article 47’s provisions concerning compensation are intended solely for subscription channels—those that require payment from viewers—not for open channels available to the public.
“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.” Historically, for nearly two decades, agreements between such media entities have often entailed a financial exchange, whereby one company compensates another for broadcasting rights.
Historical Context
Traditionally, Sýn has paid Síminn tens of millions of ISK annually for the rights to transmit its content. In light of FST’s recent ruling, Síminn has ceased these payments for Sýn’s open channel. Consequently, Síminn now carries this channel free of charge, while Sýn is now calling for Síminn to pay to continue its broadcasts.
Interestingly, Síminn does pay Sýn for the transmission of its own open TV channel via Sýn’s distribution network—a situation that existed prior to the current legal questions.
No Precedents in Sight
FST further expressed that they are unaware of any instances, either within Iceland or internationally, where telecommunications companies have been required to pay media providers for broadcasting open TV channels. The prevailing principle has been that media providers typically bear the cost when content is distributed. This approach facilitates greater audience reach, as advertisers and sponsors often financially back these channels, compensating for a lack of subscription revenues.
With approximately 40,000 households utilizing Síminn’s IPTV system, many viewers tune in daily to Sýn’s news programming. The decision is set to influence the landscape of broadcasting in Iceland, reinforcing the framework around media distribution rights.
