Televisa Buy Out Cablemás - Good News For Mexican Pay-TV

Televisa's decision to buy the remaining stake in Cablemás for US$4m will consolidate its lead in the Mexican pay-TV market, in BMI's opinion. We expect Televisa to streamline services in 2011-2012. CFW believes this consolidation should be beneficial for Mexican consumers as we have previously highlighted that slow growth in the Mexican cable TV market is due to the fragmented nature of the sector. However, we expect this move to trigger a riled response from América Móvil's Telmex, which has yet to attain permission from regulators to enter the lucrative Mexican pay-TV market as of April 2011. CFW is unsurprised by Telvisa's strategy, which will be wary that Telmex's repeated calls to enter the market may be met in the not- so- distant future.

To read the full article, please choose one of the following options: