It makes sense to carry out that strategy if it destroys their profit margins ,meaning you can take over the pay tv market as seems to have happened in italy.ie you now have a monopoly with no one bidding against you when it s time to buy rights to broadcast sports at least on satellite in certain countrys.
A SMART card for itv digital is now worthless as the company is no longer broadcasting.
IT S like cable tv companys in the us ,in certain markets they drop the price ,other financially weaker companys in the area , go out of business , cant compete with a low price,eg eliminate competition in a market .Then
after a certain time raise your subscription price.
THE main reason itv digital failed was financial,they spent too much money buying up the rights to lower league uk football matches which no one wanted to watch ,sky tv had a better range of
channels ,hollywood movies and better sports packages,top tier ,league 1 soccer matches.OBVIOUSLY piracy did not help them to get new customers.
BY the way canal plus france had a similar encryption card which was also hacked some people say by the same hacker .I THINK they brought a legal case against news international,
but it was dropped ,news international bought vivendis , or canal plus, s digital tv service in italy.
see here for a more detailed article http://www.guardian.co.uk/media/2012/mar/26/ondigital-beaten-fair-or-undermined
you might say news international outspent itv,
they had more channels, better movies, better sport ,
so in the long run itv digital was bound to fail.
There was not the market for two large
scale satellite tv broadcaster s in the uk ,especially after sky tv bought up the rights to
most major sports including soccer .
IF You were cynical you might say pirate cards
were in skys interest AT that time because
the reduced the amount of paying subscribers to
itv, leaving sky tv the only choice if you wanted
to subscribe to sports/movie channels at that time.
I PRESUME sky tv got a better deal in the long
run, there was no other sat tv company bidding
against them regarding buying up uk sports/ movie