I will briefly introduce the main players that now are active on the Italian market, that account for more than two thirds of the company's revenue: The biggest threat to Mediaset comes from the internet, with many new players eroding its market share and threatening to make it thinner and thinner. Despite that, the company was profitable and enjoyed a very good market share. The company, therefore, derives its revenue from both advertising and forced payments from every household, while Mediaset's free-to-air channels have advertising as the only source of their revenue. Every household has to pay a 100 euros tax to RAI SpA every year (111 USD). The company is a strange creation of the Italian political system. RAI SpA has always had a particular competitive advantage over Mediaset. With the creation of Mediaset Premium, the company began to provide premium content through several dedicated channels and started to acquire rights for sports events that once could only be accessed through the Sky platform. For Mediaset, once the only real competitors were RAI SpA, the public broadcasting company owned by the Italian Government, and Sky, the digital satellite television that once had the exclusive rights to broadcast Serie A and many other sport events.
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