Analysis: The State of the Hispanic Pay TV market, An interview with Joe Schramm

Portada interviews Joe Schramm, Managing Partner at Schramm Marketing Group, Inc. Schramm is an expert in the Hispanic Pay TV industry.

Portada: What figures are there available about the number of Hispanic Pay TV customers (cable, satellite, telephony TV)?

“There are no official figures available for the number of Hispanic pay TV customers in the U.S. The main reason is that new customers are not asked if they are Hispanic or not. One thing for sure is that the number of Hispanic pay TV customers is greater than the number of those who actually subscribe to a Hispanic programming tier. There are many reasons for this difference.....mostly due to timing and the extent of marketing efforts. However, calculation may be made based on standard available data, and one might assume that the percentage of pay TV penetration within the Hispanic household is close, but slightly less, than the penetration of the general market - - - about 70%. But this can only be estimation! When combined, the number of Hispanics who subscribe to Hispanic programming tiers on cable TV exceeds the number of Hispanic tier subscribers to either satellite or telephony TV.

However, when addressed on a company by company basis, at this time, the satellite companies each report a greater number of Hispanic subscribers to Hispanic programming tiers.”

 

What are your growth prospects and what is the reasoning behind them?

“Cable TV companies are currently actively looking to close the gap...the Hispanic market is increasingly a highly competitive marketplace for the cable TV companies. In 2010-2012, you will see a significant increase in marketing efforts to attract customers to Hispanic programming tiers with full Triple Play service. However, efforts will truly reach a higher impact only if the telephony companies focus marketing efforts in this market as well.”

What makes a Hispanic pay TV subscriber distinctive/special vs. the average Hispanic consumer?

“All subscribers have a real value to the investment community. Hispanics tend to move into homes that were previously wired for cable TV. If they re-connect the service, then the household continues to generate revenue and maintains a value for the cable TV company and their investors (stock holders). If Hispanics move into a previously wired building, and fail to re-connect to pay TV, then the location is a losing investment.”

What differences are there between the general and the Hispanic Pay TV market?

“Pay TV looks at the Hispanic market as an added cost in two areas - -marketing and channel space (bandwidth) Programming targeted to Latinos uses  Bandwidth that otherwise would have been allocated to the general market.

The Pay TV provider needs to be able to see that they can access revenues (from advertising and sub fees) that would equal those that would have been generated by the generals market. Likewise, the investment in Spanish language marketing efforts need to pay off for attracting Hispanic customers.”


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