Thursday, January 31, 2008

Prepaid Television


Mexican media company Grupo Televisa SAB (TV), moving to snap up customers as greater competition looms in the pay TV market, started this week selling the country's first prepaid satellite television cards.


Prepaid cards for Sky Mexico, Televisa's satellite service in partnership with DirecTV Group Inc. (DTV), "use the same payment systems as cell phones, and you only pay for what you use," Televisa said Thursday in a press release.


The idea comes at a time when the country's telecom and cable companies are implementing "triple play" - the bundling of Internet, phone and video on the same network.


Televisa unit Empresas Cablevision SAB (CABLE.MX) is among cable companies that have started offering phone service, while the country's biggest fixed-line phone company, Telefonos de Mexico SAB (TMX), or Telmex, plans to start selling video this year.


Marco Rojas, director of marketing at Sky Mexico, said in a telephone interview that the rollout of prepaid television was more than partly motivated by the prospects of increased competition.


Here's the full article


Importance: Mexican economists often worry about the level of competition in many of the nation's industries; here is an example of a firm in the cable industry that has worked to become the market leader and is working to remain that way. The concerns Mexico is facing about its economy reveals the degree of modernization the nation has reached; it makes it hard to believe that a country that is beginning to succeed at fostering a growing, stable economy is also struggling with abolishing the drug cartels that have been plaguing many of its cities for so long.
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