Rupert Murdoch's Media Empire Expands into Central and South America

Strategic Insights -

Rupert Murdoch's News Corporation has joined forces with three powerful media companies to launch a direct-to-home satellite service in Central and South America. The partnership will bring about 50 channels to a potential audience of 400 million people, using a recently developed technology called direct-to-home satellite service. This move marks a significant expansion of Murdoch's media empire, which already owns television stations, newspapers, and magazines.

Key Takeaways:

  • The partnership involves Organizacoes Globo, Grupo Televisa S.A., and Tele-Communications International Inc. in a 30% stake each, while The News Corporation has a 10% share.
  • The new service will use a direct-to-home satellite service technology, allowing viewers to receive hundreds of television channels with a small satellite dish.
  • The partnership aims to be "non-exclusive" and will reach the most remote areas, but will initially market to customers who can afford to pay about $500 for the equipment.
  • The service plans to invest "hundreds of millions of dollars" on infrastructure and will have regional centers in Mexico City, Sao Paulo, Brazil, and Buenos Aires, Argentina, to provide local control.
  • The News Corporation will coordinate the effort, which aims to be an "open system and one that encourages nothing but diversity and competition."
  • Local media outlets will be "welcome to come in not as investors but with programming," according to Murdoch.
  • Murdoch aims to learn from the mistakes made in the founding of BSkyB in Britain, which had a potential audience of 20 million homes.

Statistics:

  • The partnership will broadcast about 50 channels in Spanish and Portuguese to a potential audience of 400 million people.
  • The new service will use a direct-to-home satellite service technology that allows viewers to receive hundreds of television channels with a small satellite dish.
  • Tele-Communications International Inc.'s stake in the partnership is 10%, while the other three partners have a 30% stake each.
  • The partnership plans to invest "hundreds of millions of dollars" on infrastructure.
  • The potential audience for the service in Britain was 20 million homes.

Sources:

  • "Rupert Murdoch's media empire expands into Central and South America" (author not specified),
  • "At TCI we believe that no one company has the resources to succeed in the global communications world of the 21st Century," said Fred Vierra (Source: Rupert Murdoch's media empire expands into Central and South America)
  • "In Britain there is a potential audience of 20 million homes," said Rupert Murdoch (Source: Rupert Murdoch's media empire expands into Central and South America)