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 of attrition, ultimately leaving only one player to survive in the long run.
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