Cases of television enterprises
ATTACHMENT 5.- TELEVISION RIGHTS FOR FOOTBALL IN SPAIN
In order to make the point of having a competitive advantage through differentiation clear, we will see once again a case in television networks in Spain. In this case, we will see the television rights for the world of football, which moves a great deal of money because of the interest this sport creates among its fans.
Without a doubt, in Spain, there are two football clubs that overwhelm the fan market. Their followers are even found practically all over the planet. These are, and it could not be other way, Real Madrid Football Club (the most celebrated club in the history of the sport), and Barcelona Football Club (current champion of the Champions League, which gathers the best teams from the European continent). Besides these two, there are other important clubs, such as Valencia, Atlético de Madrid or Sevilla, but they don't come even close to the media repercussion the movements generated by R. Madrid or Barcelona.
Transmitting rights for these clubs are the property of SOGECABLE , the leading group of pay-per-view television in Spain and third in Europe. SOGECABLE was a pioneer when introducing digital television and interactive services into the Spanish communications market. SOGECABLE gathers a high degree of solvency and experience in the entire chain of value for pay-per-view television; from the acquisition and management of audio-visual rights, to production and channel distribution, marketing and management of subscribers. Besides, SOGECABLE is present in movie production, distribution and exhibition.
Without a doubt, the fact of owning the television rights for R. Madrid and Barcelona grants SOGECABLE a sustainable competitive advantage - at least until the contract is valid. This enterprise offers a different, unique product to the market. If a spectator wishes to see the matches played by R. Madrid or Barcelona at home, he/she would have to do so through SOGECABLE . This is the reason why clients are willing to pay for that privilege. It is a clear example of competitive advantage through differentiation owned by the enterprise SOGECABLE .