British Sky Broadcasting Group plc (BSkyB) packaged television content into channels and distributed it via satellite to subscribers and to other distribution platforms. Sports programming and, in particular, live coverage of Premier League Football was one of BSkyB's main attractions for its customers and lay at the core of BSkyB's positioning. In 1996, BSkyB acquired a four-year license to the exclusive broadcasting rights of all Premier League football matches for (pounds) GBP670 million. The year was 1999 and, as the expiration of the Premier League license drew nearer, new strategies for the upcoming licensing round had to be formulated. This case may be used as part of a course on strategic analysis (game theory) or as a stand-alone class in a strategy course. The case is centered on the strategic effect of asymmetric equity positions ("toeholds") on bargaining power. In particular, the case offers opportunities to discuss: ? The effect of vertical integration on bargaining power ? The strategic analysis of toeholds ? Iterated competitive analysis ? The notion of dominance solvability.
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