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Communications Law establishes strict Ecuadorian content quotas for TV, radio

Communications Law establishes strict Ecuadorian content quotas for TV, radio
17 de junio de 2013 - 13:12

Ecuador’s newest law, regulating the communications industry, dedicates an entire section to creating Ecuadorian content quotas on broadcast television and radio.

According to the Alianza PAIS party, the new rules will encourage and promote local productions. 

As soon as the bill that was passed by the National Assembly last Friday June 15 is signed and executed by the President, television stations will have to broadcast a minimum of 60 percent Ecuadorian programming. Of that, ten percent must be independently produced.

The law defines independent producers as people who do not have a work relationship or a family relation with the channel that shows their production.

In Art. 99, the law says that any one content producer can supply up to 25 percent of any channels programme line-up.

The law will also completely reform the advertising industry. According to the law, all ads that air on television in Ecuador will have to be created by national companies. The ad companies will have to have an address in the country, and belong mainly to Ecuadorians or residents of Ecuador. Foreign-produced commercials will only be allowed if they are related to a humanitarian cause. If a channel break this requirement, they could be fined 50 percent of what they got for airing the commercial.

The law also requires each television channel to air at least two new Ecuadorian films a year. They must acquire the distribution rights by paying two percent of whatever their yearly income is from publicity sales. If their catchment area is more than 500,000 people, they must spend 5 percent of their ad income in the movie rights.

And for radio stations, the law creates a “One for One” rule: at least fifty percent of the music radio stations play must be Ecuadorian, except for specialty channels.

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