The Digital Merger (A)

  • Reference: ECON-413-E

  • Year: 1999-2002

  • Number of pages: 16

  • Geographic Setting: España

  • Publication Date: Nov 5, 2003

  • Fecha de edición: Feb 26, 2004

  • Source: IESE (España)

  • Type of Document: Case

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Description

In May 2002, Canal Satélite Digital and Vía Digital, the only two platforms offering satellite pay-TV in Spain, in both cases since 1997, officially announced their merger. This appeared to signal the start of a new episode in the "digital soap opera" that had begun when the Spanish government promoted the launch of a second digital platform to compete with the incumbent operator. The battle between the two digital platforms had flared up even before they started broadcasting and had raged throughout the first five years of their existence. And yet, considering the current state of pay-TV in Spain, and in Europe as a whole, it was quite possible that this episode would be the last.

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Keywords

Competitive Strategy