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The NextTV CEO Summit took place in Miami this week, and we found out what the major players in the Latin American pay-TV sector had to say about the OTT revolution, NetFlix LatAm expansion, governmental regulations and more.

Carlos Moltini, CEO, Cablevisión Argentina:

“We need to find out if the Netflix revolution is a substitute or an addition to our offerings. We bought Nextel to offer our clients a mobile solution in major cities. In the US, Comcast has a huge budget with a large professional staff to innovate and market its services, which is something that is hard to do at a smaller scale.”

nextel

Steve Oetegenn@VerimatrixInc, President, Verimatrix:

“I think trying to fight the Netflix revolution would be a mistake; creating valuable, relevant content is the key. Tech providers are bundling silos that operators must work with. Tools like forensic water marking are important to the industry.”

Saúl Kattan Cohen, President, Empresa de Telecomunicaciones de Bogotá (ETB):

“Look at Blockbuster: hundreds of stores, but did not react to the digital evolution and Netflix took the space over. DTH will succeed in small markets. Some in our space will become aggregators, others will become triple play, but everyone has to compete in the Netflix space, transform technology and provide solutions for the market.”

Eduardo Stigol, CEO, Inter Venezuela:

“The challenge in Argentina is that one government agency looks at content while another looks a technology, so regulation on the Netflix model may take some time. Access to bandwidth is still a challenge, while some like Movistar offer limited technology and cut rates to concentrate on volume.”

cablevision

Tom Wirth, Senior Vice President Americas, Nagra:

“Cable operators cannot expect to keep adding more channels that the market does not want in order to increase rates. Millennials do not want content that they don’t want so the industry has created the Skinny bundle, a few channels at a discount. And users are even going to free air, not in large numbers but a small percentage nonetheless.”

What: Telecom Giant Altice has acquired Cablevision in a US$9 billion deal.
Why it matters: Altice will inherit 2.78 million broadband customers and 2.64 million pay-TV customers on Long Island and around the New York metro area.The deal includes the Long Island tabloid Newsday and local Channel 12.

zx0-TG32_400x400Dolan family is selling Cablevision, the flagship cable company it founded more than 40 years ago, to France’s telecom giant Altice for US$9 billion,

The deal also includes the Long Island tabloid Newsday and local Channel 12.

Following this deal, Altice will inherit 2.78 million broadband customers and 2.64 million pay-TV customers on Long Island and around the New York metro area.It will also gain control of the 400,000 circulation newspaper and the seven regional Channel 12 cable news networks.

Cablevision was founded in 1973 by Dolan family patriarch Charles Dolan.The company took control of Madison Square Garden and its Knicks and Rangers sports teams in 1997 before spinning them off into a separate company in 2010.Today,Cablevision is valued in US$$7.9 billion. Over the past 12 months, Cablevision has increased its stock price by 48 percent, and is up 38.3 percent year-to-date.

The cable industry has been consolidating for years — and Cablevision, like many other pay-TV outfits, has been the subject of many sale rumors in recent years.

But now,  Charles Dolan has retired and James busy is serving as the executive chairman of MSG and on the board of family-controlled AMC Networks, so maybe is right for the family to sell one of the pieces of its sports, media and entertainment empire.

Altice’s owner is part of a wider effort by the company to expand its US holdings.In May, telecom giant acquired a 70 percent stake in St Louis-based Suddenlink — a deal that valued the Midwest cable company, with about 1 million subscribers, at US$9.1 billion.

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Latin American market and/or targeting Latin American consumers right now.

Twitter – Ogilvy PublicRelations ::: Cablevisión Monterrey / Hasbro – Archer Troy ::: Pond´s – Room23 :::  Travesías Media – América Latina ::: Grupo Vips – MRM//McCann España :::  Gulf Oil  – ADV Vázquez Argentina ::: Mabe Global – Sparkling México :::

Check out  Portada’s Interactive Directory of Corporate Marketers and Agency Executives. To acquire the database, please call Xavier Gonzalez at 1-212-685-4441 or e-mail him at xavier@portada-online.comSEE A DEMO OF THE DIRECTORY!

Heinz- Global
heinzHeinz has shifted Its US $250 Million Global Media Account to OMG and to IPG’s UM leaving incumbent Cramer-Krasselt out.While UM (Universal McCann) will handle the Heinz U.S. business, it is not yet clear how OMG media agencies PHD and OMD will split the international business. According to MediaPost , the company’s total ad spend, about 25% is in the U.S. Cramer-Krasselt, which did not participate in the review, continues to handle the creative account for now.The review followed the acquisition last June of Heinz by an investment consortium that included Berkshire Hathaway and 3G Capital.

Twitter – Latin America

Ogilvy - Twitter -Ogilvy Public Relations is the new PR agency of Twitter in Latin America. The agency will be in charge of the PR in Brazil, Argentina and Mexico. Emmanuel Evita will supervise the work as Director of Public Relations of Twitter in Latin America.

 

Cablevisión Monterrey / Hasbro – Mexico

ArcherTroy -The independent agency Archer Troy has won the accounts of Cablevisión Monterrey and Hasbro after a pitch.

The agency will be in charge of strengthen Cablevisión Monterrey creative´s brand strategy in 360, ATL and BTL. Also, for Hasbro the agency will be in charge of the creative duties for the brand´s shopper marketing and print media.

Pond’s – Argentina

ponds -Pond’s, Unilever´s brand, will work with Room23 as its agency in the country. Room23 will work with Pond´s in digital media, radio, pnts and advertorials. Dolores Fernandez Alberti will be in charge of the account, Agustina San Germán, will be in charge of the social media and Adrián Alonso, is the creative director.

Grupo Vips – España

Club Vips -Grupo Vips has chosen MRM//McCann as its creative agency in Spain. The agency will be in charge of the creative duties and will support Club Vips as advisor in marketing offline, digital and social media.

 

Gulf Oil – Argentina

Gulf ADV -ADV Vázquez  will work with Gulf Oil in Argentina as its creative agency.

 

 

Mabe – Global

Mabe - Sparkling -Sparkling, the independent agency leaded by Arturo Miranda, Esteban Sacco and Rafa Barthaburu, will be in charge of the creative duties of Mabe globally. The account will be managed in Ciudad de México.

Check out  Portada’s Interactive Directory of Corporate Marketers and Agency Executives. To acquire the database, please call Xavier Gonzalez at 1-212-685-4441 or e-mail him at xavier@portada-online.comSEE A DEMO OF THE DIRECTORY!

Grupo Televisa, the largest Spanish-language  media company worldwide, announced its second quarter results. Net income grew by   30.7%  compared to the same quarter of 2012.

  • Consolidated net sales and operating segment income grew by 6.4% and 8.5%, respectively
  • Royalties from Univision reached US$70.5 million, a  9.9% increase compared to the second-quarter last year.
  • Record revenues in Pay-Television  Sky reached 4 billion pesos (aproximately US$ 380 million) with an operating segment income margin of 47.0%
  • Cable & Telecom reached 4.7 million revenue generating units, with strong growth in data and voice of 23.9% and 16.2%, respectively.
  • Net income attributable to stockholders of the Company reached 1.8 billion pesos, a 30.7% increase from the second-quarter last year

televisa1

The table above  shows the consolidated statements of income for the quarters ended June 30, 2013 and 2012, in millions of Mexican pesos, as well as the percentage that each line represents of net sales and the percentage change when comparing 2013 with 2012.

Net sales increased 6.4% to Ps.18,065.0 million (aproximately US$ 1.5 billion)  in the second-quarter 2013 compared with Ps.16,983.8 million in second-quarter 2012. This increase was mainly attributable to revenue growth in Content, Cable and Telecom, and Sky segments, partially compensated by a decrease in Publishing net sales. Operating segment income increased 8.5%, reaching Ps .7,733.7 million with a margin of 42.0%. Net income attributable to stockholders of the Company increased to Ps.1,825.5 million in second-quarter 2013 compared with Ps.1,396.3 million in second-quarter 2012.

Results by Business Segment

The following table presents second-quarter consolidated results for each of our business segments in millions of Mexican pesos:

televisa2

Content

Second-quarter sales increased 5.1% to Ps.8,241.7 million compared with Ps.7,845.4 million in second-quarter 2012.

televisa3

Advertising

Advertising revenue increased by 6.2% to Ps.5,911.4 million compared with Ps.5,566.9 million in second-quarter 2012, “reflecting the ongoing success of our content and also the strength of broadcast television as the advertising platform of choice,” a Televisa statement said.

Second-quarter Network Subscription Revenue increased by 9.5% to Ps.881.7 million compared with Ps.805.4 million in second-quarter 2012. The growth was driven mainly by the sustained addition of pay-TV subscribers, mostly in Mexico, according to Televisa’s release. Second-quarter Licensing and Syndication revenue decreased by 1.7% to Ps.1,448.6 million compared with Ps.1,473.1 million in second-quarter 2012. The decrease is explained mainly by a negative translation effect on foreign-currency-denominated sales. This effect was partially compensated by an increase of 9.9% in royalties from Univision, to US$70.5 million in second-quarter 2013 from US$64.2 million in second-quarter 2012.

Second-quarter operating segment income increased 7.6% to Ps.4,066.8 million compared with Ps.3,778.6 million in second-quarter 2012. The margin was 49.3%. The increase is explained by higher advertising and network subscription revenues.

Publishing

Second-quarter sales decreased 9.7% to Ps.838.7 million compared with Ps.928.7 million in second-quarter 2012. The decrease is explained by lower circulation and advertising revenues in Mexico and the rest of the world and a negative translation effect on foreign-currency-denominated sales. Sales outside Mexico represented 61.9% of the segment compared with 63.2% in the same quarter of 2012.

Second-quarter operating segment income decreased 23.9% to Ps.118.1 million compared with Ps.155.2 million in second -quarter 2012, and the margin was 14.1%. This decrease reflects lower sales and higher marketing expenses.

Sky

Second-quarter sales increased by 12.8% to Ps.4,000.9 million compared with Ps.3,545.5 million in second-quarter 2012. The increase was driven by growth in the subscriber base in Mexico. The number of net active subscribers increased by 233,242 during the quarter to 5,646,254 as of June 30, 2013, compared with 4,550,695 as of June 30, 2012. Sky ended the quarter with 199,529 subscribers in Central America and the Dominican Republic.

Second-quarter operating segment income increased 12.8% to Ps.1,881.0 million compared with Ps.1,668.2 million in second-quarter 2012, and the margin was 47.0%.

Cable

Second-quarter sales increased 8.2% to Ps.4,188.4 million compared with Ps.3,871.7 million in second-quarter 2012. Revenues from Televisas three cable operations: Cablevisión, Cablemás and TVI experienced growth. Excluding Bestel, second-quarter sales in the aggregate for the three cable companies increased 10.8%. Data and voice revenue generating units, or RGUs, continue to be the main drivers of growth, growing 23.9% and 16.2% compared with second-quarter 2012, respectively, and video RGUs grew 7.7%.

Grupo Televisa, the largest Spanish-language media company worldwide, announced its second quarter results. Net income grew by 30.7% compared to the same quarter of 2012.

  • Consolidated net sales and operating segment income grew by 6.4% and 8.5%, respectively
  • Royalties from Univision reached US$70.5 million, a 9.9% increase compared to the second-quarter last year.
  • Record revenues in Pay-Television Sky reached 4 billion pesos (aproximately US$ 380 million) with an operating segment income margin of 47.0%
  • Cable & Telecom reached 4.7 million revenue generating units, with strong growth in data and voice of 23.9% and 16.2%, respectively.
  • Net income attributable to stockholders of the Company reached 1.8 billion pesos, a 30.7% increase from the second-quarter last year

televisa1

The table above shows the consolidated statements of income for the quarters ended June 30, 2013 and 2012, in millions of Mexican pesos, as well as the percentage that each line represents of net sales and the percentage change when comparing 2013 with 2012.

Net sales increased 6.4% to Ps.18,065.0 million (aproximately US$ 1.5 billion) in the second-quarter 2013 compared with Ps.16,983.8 million in second-quarter 2012. This increase was mainly attributable to revenue growth in Content, Cable and Telecom, and Sky segments, partially compensated by a decrease in Publishing net sales. Operating segment income increased 8.5%, reaching Ps .7,733.7 million with a margin of 42.0%. Net income attributable to stockholders of the Company increased to Ps.1,825.5 million in second-quarter 2013 compared with Ps.1,396.3 million in second-quarter 2012.

Results by Business Segment

The following table presents second-quarter consolidated results for each of our business segments in millions of Mexican pesos:

televisa2

Content

Second-quarter sales increased 5.1% to Ps.8,241.7 million compared with Ps.7,845.4 million in second-quarter 2012.

televisa3

Advertising

Advertising revenue increased by 6.2% to Ps.5,911.4 million compared with Ps.5,566.9 million in second-quarter 2012, “reflecting the ongoing success of our content and also the strength of broadcast television as the advertising platform of choice,” a Televisa statement said.

Second-quarter Network Subscription Revenue increased by 9.5% to Ps.881.7 million compared with Ps.805.4 million in second-quarter 2012. The growth was driven mainly by the sustained addition of pay-TV subscribers, mostly in Mexico, according to Televisa’s release. Second-quarter Licensing and Syndication revenue decreased by 1.7% to Ps.1,448.6 million compared with Ps.1,473.1 million in second-quarter 2012. The decrease is explained mainly by a negative translation effect on foreign-currency-denominated sales. This effect was partially compensated by an increase of 9.9% in royalties from Univision, to US$70.5 million in second-quarter 2013 from US$64.2 million in second-quarter 2012.

Second-quarter operating segment income increased 7.6% to Ps.4,066.8 million compared with Ps.3,778.6 million in second-quarter 2012. The margin was 49.3%. The increase is explained by higher advertising and network subscription revenues.

Publishing

Second-quarter sales decreased 9.7% to Ps.838.7 million compared with Ps.928.7 million in second-quarter 2012. The decrease is explained by lower circulation and advertising revenues in Mexico and the rest of the world and a negative translation effect on foreign-currency-denominated sales. Sales outside Mexico represented 61.9% of the segment compared with 63.2% in the same quarter of 2012.

Second-quarter operating segment income decreased 23.9% to Ps.118.1 million compared with Ps.155.2 million in second -quarter 2012, and the margin was 14.1%. This decrease reflects lower sales and higher marketing expenses.

Sky

Second-quarter sales increased by 12.8% to Ps.4,000.9 million compared with Ps.3,545.5 million in second-quarter 2012. The increase was driven by growth in the subscriber base in Mexico. The number of net active subscribers increased by 233,242 during the quarter to 5,646,254 as of June 30, 2013, compared with 4,550,695 as of June 30, 2012. Sky ended the quarter with 199,529 subscribers in Central America and the Dominican Republic.

Second-quarter operating segment income increased 12.8% to Ps.1,881.0 million compared with Ps.1,668.2 million in second-quarter 2012, and the margin was 47.0%.

Cable

Second-quarter sales increased 8.2% to Ps.4,188.4 million compared with Ps.3,871.7 million in second-quarter 2012. Revenues from Televisas three cable operations: Cablevisión, Cablemás and TVI experienced growth. Excluding Bestel, second-quarter sales in the aggregate for the three cable companies increased 10.8%. Data and voice revenue generating units, or RGUs, continue to be the main drivers of growth, growing 23.9% and 16.2% compared with second-quarter 2012, respectively, and video RGUs grew 7.7%.

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The Vidal Partnership has won the Cablevision media planning and buying account, Portada has learned.
Cablevision Systems Corporation is the eight largest cable television company  in the U.S. with systems serving areas surrounding New York City. Most of its customers reside in New York, New Jersey, Connecticut and parts of Pennsylvannia. Cablevision also offers high-speed Internet  connections (Optimum Online), as well as digital cable Optimum TV (Optimum TV) and VoiP (Optimum Voice) phone service. According to Kantar, Cablevision Systems spent nearly $110 million on U.S. measured media in 2011, and the bulk of it was devoted to the Optimum brand.

Cablevision media planning and buying duties were until recently the responsibility of  New York City based Globalworks. For The Vidal Partnership, the Cablevision account win is a relief after the agency had several account losses over the last year, including the Heineken account last December.  Two veteran executives Alberto Ferrer and Gustavo Carvajal, recently left their posts at TVP.

The Vidal Partnership is a full-service, independent advertising agency working with clients including FEMA, NFL, Tylenol, Rémy Martin and TD Bank.