Grupo Televisa is preparing a significant change in its pay-TV offering in Mexico, after acquiring the shares that AT&T owned in Sky, thus consolidating full control of the business in the country. However, the operation is pending approval from relevant regulators.
In a video message, Luis Malvido, current director of Sky, confirmed that Grupo Televisa will merge these two leading pay-TV companies. Malvido stated: “Grupo Televisa has decided to unify the two companies, creating a highly powerful company that offers the best entertainment programming from Sky, along with the most extensive broadband network in Mexico.”
This strategic move comes after a change in Sky’s share ownership, which facilitated the completion of the operation. Although it has not yet been revealed whether a new brand will be created or any existing ones will be maintained, the recent removal of the sports channel Afizzionados from izzi’s lineup could indicate a preference for maintaining the internationally recognized Sky brand.
Malvido commented: “We are talking about the merger of two great companies with a long history and prestige in the market. This process will require significant adjustments.” However, these changes could face delays if regulators encounter issues, especially considering that an IFT study in 2022 revealed that Grupo Televisa controls 59% of the pay-TV market in Mexico, with Megacable in second place with 24%.
It is important to remember the precedent of concern for monopoly when Disney attempted to acquire all of Fox’s content in Mexico, including Fox Sports. On that occasion, Grupo Televisa expressed concern about the possibility of being considered a monopoly in sports rights, which ultimately resulted in the separation of Fox Sports from the purchase. This precedent could influence the evaluation of the merger between izzi and Sky by regulators, who will be attentive to ensuring competition in the pay-TV market in Mexico.
