The case of Telefonica Chile-Digital TV, presents the situation faced by the General Manager of the Company and its management team to the poor performance during the years 2000 to 2004 in the fixed telephony and broadband internet company, failing to adequately adapt to the changing environment. The case establish the various factors that influenced the results of Telefonica, presenting and analyzing records to determine what might be the strategies to be followed by the company in order to improve its position in the industry in which it competes. Specifically, present a background to evaluate the income of Telefonica to the pay television industry.