SkyStream Networks, Inc. (A)

SkyStream Networks was a worldwide networking infrastructure company whose products enabled service providers to create new revenue streams by delivering digital media services like corporate communications, live broadcast video, enhanced TV, media asset distribution, distance learning, and broadband entertainment portals over any broadcast or broadband network. This case chronicles the history of SkyStream beginning in 1998 through the end of 2001. While the company had faced tremendous success during that period, the management team was faced with a difficult decision in December 2001. Given the difficult economic environment, the team needed to find a way to cut additional costs. They had to decide whether to cut from a new product targeted primarily at telcos or from their existing products. Note: This case can be used in conjunction with the case SkyStream Networks (B) E-135. This short case reveals the decision that the management team and provides an overview of what happened at SkyStream from January to July 2002.