Media Concentration in the Hispanic Market: A Case Study of TV Azteca vs. Televisa

Abstract

If one wanted to measure the historic level of multimedia industry concentration in Mexico, it would not be necessary to use statistics, financial analysis, viewer ratings, or other evaluation systems. The maximum level of concentration is 1, and, in Mexico, that number belonged for 20 years to Grupo Televisa (1973-1993). Televisa's position was lost in 1993 when entrepreneur Ricardo Salinas Pliego launched TV Azteca. This paper explores the principal strategies used by TV Azteca to overcome the entry barriers set by the Televisa monopoly. The paper also presents an economic valuation of this duopoly market 7 years after the shift in market structure. ACCESS TO FULL TEXT