Case Number: 5-206-255, Year Published: 2006
HBS Number: KEL203
Switching Cost, Lock-In, Bidding for Content, Satellite Radio
Radio broadcasting is characterized by diffused taste for programming and highly fragmented supply of content. Satellite radio is a major technological breakthrough that promises to reshape this industry by, among other things, satisfying a greater diversity in tastes and promoting greater variety in content provision. A major issue is that the economies of scale are such that it is unlikely for more than a few (currently, just two) providers to operate in this market due to the considerable infrastructure and content costs.
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