MTV Italia is facing the prospect of losing its nationwide terrestrial TV distribution following the announcement by Italy’s Ministry of Communications that only eight private TV networks will have their licences renewed, a reduction from the current 12.

Italian TV network Rete A, which distributes MTV Italia’s programming free-to-air through a joint-venture agreement, was placed ninth in a points system that evaluates the applicants’ quality of programmes, business plan, employment and track record.

Rete A still has a chance to retain its licence, if eighth-placed Retemia fails an investigation into its ownership. The Ministry has asked Retemia to prove that it is controlled not by US-based Home Shopping Network, but by Italian and European investors. However, should Retemia’s licence be renewed, Rete A will be forced to move to satellite and cable-only distribution. "We are confident of keeping our terrestrial signal. We have a strong viewership and can’t imagine that we won’t stay on-air," an MTV spokesperson said. "For us, it is business as usual."

The Italian company Vallau Promomarket, which submitted the licence application on behalf of Retemia, is currently 89.9 per cent owned by Italian companies (Internova with 40 per cent and Profit and Videopiu with 24.95 per cent each), while the remaining 10.1 per cent is held by HOT Italia, which recently took over the stake from SBS. However the latter is considered to be a non-European company, since it is quoted on the Nasdaq stock exchange. Also, HOT Italia has submitted a request for authorisation to buy up the stakes currently owned by Italian partners and thus become a 100 per cent owner of Retemia.

The new shareholding structure of the company would see European partners holding a 60.2 per cent stake, but this will have to be verified by the authority. In regards to Rete A, the ministerial decree underlines that the advertising contract the station has with the MTV Advertising agency "seems to suggest that the control could be transferred to the agency which is owned by Viacom, meaning that it is indirectly controlled by a US company".

The Ministry has asked the authority to conduct additional verifications, but the problem is that the two channels, which have no current licence to broadcast (their previous licences were valid till July 31), could be closed down any day by a simple court order, unless a special licence extension is granted.