Implications of the Austar-Foxtel Merger

Foxtel is a vibrant and fast growing pay TV service provider in Australia that offers cable, IPTV as well as direct broadcast satellite services. Over the years, the company has been making milestones in the industry that includes, among others, the delivery of up to 20 channels over Telstra’s Hybrid Fibre Coaxial network, the acquisition of Galaxy satellite television in 1998 as well as the imminent take over of Austar, formerly one of Foxtel’s fiercest competitors, set to be finalised in 2012. This merger will have far reaching consequences in terms of business performance of other players in the same media industry. These implications are identified and explained in detail below.