Sky Television vs British Satellite Broadcasting: Analysis of actions of the two companies

By October 1990, two newcomers, British Satellite Broadcasting (BSB) and Sky Television, rivaled one another in an ugly battle to dominate British satellite television. In pursuit of a better market position, not only did both players invest a combined total of £1.25 billion, but also racked up losses at the combined rate of nearly £10 million per week. Rather than rationalizing and engaging in cooperative behavior to increase profits for the overall industry, this battle became the war …showed first 75 words of 713 total…

…showed last 75 words of 713 total…BSB is noted for its deep pockets, but at the end of the day, it incurred exceptionally higher costs with late break-even anticipation, and just could not seem to compete with the aggressive competition of Sky. Sky will most likely be the one to sustain initial losses and be patient enough to remain in the industry. As the survivor, Sky may attempt to leverage BSB's technological and financial resources by exploring acquisition initiatives with BSB.