BskyB and the Launch of Digital Broadcasting in the UK in 1998

Published 01 Jan 2000
Reference 4226
Topic Strategy
Industry Broadcast Media
Region Europe
Summary

Having won the analogue pay TV battle in the UK in the 1990s, Rupert Murdoch is now faced with the challenge of launching digital pay TV. Unlike in the first battle, his competitors from cable and commercial TV (ITVs) are ready. Can he leverage his first win into the new battle?

Teaching objectives

The case allows an in-depth analysis of several issues related to network externalities: How to establish critical mass? What are the strategies to come back if you are losing? How (easily) can wins from one battle be transferred/leveraged into another battle?

Keywords
  • RD0500
  • AR2000
  • NETWORK EXTERNALITIES
  • STANDARDS
  • TECHNOLOGY CONVERGENCE
  • PRICE DISCRIMINATION
  • SUPPLY CHAIN ANALYSIS
  • CRITICAL MASS
  • WINNER-TAKE-ALL