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What: Mexican broadcaster Televisa reported a net profit of MX $563 million pesos (US$28.6 million) in the fourth quarter of 2017, down 12.5 percent from the same period a year earlier.
Why it matters: Grupo Televisa, Mexico’s leading broadcaster, has struggled during the last year with increasing competition from OTT streaming, as well as advertising declines.

Mexican broadcaster Televisa has announced its quarterly results, with a net profit down 12.5 percent from a year ago. A fall in advertising appeared to be the main drag on the company’s results, said analyst Carlos de Legarreta of GBM. The company said it had shifted its advertising clients to a new pricing scheme based on TV show ratings, going into effect this year.

Televisa, which owns Mexico’s popular ‘Las Estrellas’ network and a sizeable stake in U.S. Spanish-language peer Univision, has faced increasing competition from OTT media services.

The company has made several modifications to its management team. Late last year, longtime Chief Executive Emilio Azcarraga announced he would step down, remaining as chairman of the board. Executive Vice President Alfonso de Angoitia and Executive Vice President Bernardo Gomez succeeded him as co-chief executives in January. The company also named a new Chief Content Officer.

Televisa has said that it will sell off assets as it focuses on content and distribution. Last week, the company announced that it had reached an agreement to sell its 19 percent stake in Spanish media group Imagina for EU $284 million  (US $350 million). This stake will be purchased by Chinese investors Orient Hontai Capital, who have also acquired 22.5% of Torreal and 12% of Mediavideo. Selling its participation of Imagina will reportedly help Televisa lower its net debt levels.

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US HISPANIC MARKET

Research by eMarketer claims that total numbers of U.S. digital video viewers will increase from 221.8 million in 2017 to 239.2 million in 2021 and that the penetration rate among internet users will increase from 81.2% to 83.5%.

Vimeo has added a 360° feature with tutorials for creators, support for 8K files, offline viewing, and bespoke apps for specific mobile headsets.

Google has expanded its image recognition AI tools into the realm of video, announcing that users will be able to search through video content that is automatically assigned tags by an AI system.

According to new research from Ooyala, mobile represented 54% of all online video viewing in Q4 2016 and is tipped to hit nearly 60% in Q1 2017.

According to the NFL, their investment in online video platforms paid off: video-on-demand (VOD) starts grew by 76% over the previous year; mobile was up 235%. The average viewing session was 65.6 minutes, up 43%; and streaming across all devices was up 43%.

Google’s YouTube and Daydream groups are introducing the equi-angular cubemap (EAC), a new projection technique that increases the practical level of detail for 360-degree footage.

Ericsson’s annual ConsumerLab TV and Media Report reveals that a mobile subscription plan that allows affordable streaming of TV and video content on a mobile device – with reasonable video quality and without having to ration data – is of great interest to 40% of consumers globally. Millennials are the most interested group at 46%. 40% of consumers globally are “very interested” in a mobile data plan that includes unrestricted video streaming.

Facebook has signed a broadcasting agreement with Major League Soccer (MLS) and Univision Deportes that will see the social giant live stream at least 22 matches of the upcoming 2017 MLS season, beginning March 18, Mashable reports.

Ooyala has released its Q4 2016 Global Video Index, finding that pre-roll mobile impressions for broadcasters grew to 47 percent, up from 44 percent in Q3. Both smartphone and tablet percentages increased, taking share from computers, which dropped to 39 percent from 44 percent in Q3. For publishers, mobile pre-rolls showed a slight decline, falling from 39.7 percent in Q3 to 38.4 percent in Q4.

Outbrain released its ‘State of Global Content Marketing’ Report, revealing that 52% of all Outbrain pageviews were mobile in 2016.

LATAM MARKET

Discovery platform Taboola announced an exclusive strategic alliance with Televisa, who will integrate Taboola’s high-impact content recommendation platform with the goal of increasing revenue through sponsored content and video as well as driving engagement through on-site personalization.

Facebook has arranged distribution deals for both Mexico’s and Spain’s top soccer divisions, Liga MX and La Liga.

According to Ericsson’s annual ConsumerLab TV and Media Report claims that in Colombia 60% of consumers would be very interested in a mobile subscription plan that allows affordable streaming of TV and video content on a mobile device.

According to the new Irdeto Global Consumer Piracy Survey, almost three-fifths of consumers who watch pirated content in Latin America stated they would watch less or stop watching pirated video content after learning that piracy results in revenue loss from studios, affecting investments in future content creation.

Outbrain’s ‘State of Global Content Marketing’ Report revealed that in Brazil, social and video are particularly popular, and that mobile advertising generates 12.5% of awareness for brands in the country, 8.9% more than the average generated by desktop.

Yesterday’s announcement of the FCC, by which the U.S. regulator allows foreign ownership of Univision to exceed the mandatory 25% ceiling up to 49%  is major news. As a result of the ruling, Televisa will increase its stake to 40%. 6 ways this may impact the largest media company targeting Hispanic audiences in the U.S and the multicultural marketing space.

1. A “White Knight” Rescue for Univision

descargaThe FCC ruling is a big relief for Univision. “Without this ruling, Univision would remain cash strapped, hindering its ability to pull itself out of the current ratings slump,” Court Stroud a long time Hispanic TV executive tells Portada. “The company would continue to decline, either divesting divisions or holding a fire sale. The FCC decision is a white knight rescue for Univision,” Stroud adds.

2. Televisa gets Effective Control of Univision

televisaBy swapping debt into stock, the Mexican media giant Televisa now is by far the largest shareholder in Univision. In addition to the sizable economic and political interest the Mexican broadcaster has in Univision, it also gets significant royalties from Univision’s Spanish-language media sales. Televisa supplies about 35% of Univision’s television programming and more than half of its content across other platforms. In fact in a MOU (Memorandum of Understanding) with Univision of July 2015, Televisa negotiated higher royalties for 2018 and beyond. “Effective January 1, 2015 and through December 2017, the royalty rate on substantially all of Univision’s Spanish-language media networks revenue is 11.84 percent. Starting January 1, 2018, the royalty rate will increase to 16.13 percent.’ Televisa has a tremendous vested interest in Univision’s growth (even more if we take into account that Univision’s revenues are in dollars while the Mexican peso – Televisa is a Mexico City headquartered company  has seen a substantial devaluation since Trump became president-elect in the U.S).

3. More Resources to Invest in Programming that Specifically Targets U.S. Audiences

Univision’s longtime rival Telemundo has seen gains in its prime-time lineup. This is attributed to the fact that Telemundo specifically invests in content targeting U.S. Hispanics. Televisa Spanish-language programming is mostly targeting the Mexican consumer and re-aired in the  U.S. Televisa now has an increased incentive, because of its higher stake in Univision, to produce content for Univision that specifically targets the U.S. Hispanic consumer, including bilingual and English-dominant audiences. More and better content in the U.S. Hispanic TV and video markets should provide better options for the Hispanic consumer and beyond.

4… and  for Marketing the new U.S. Sports Broadcast Rights of Mexican Soccer Clubs

Seleccion Mexicana de FutbolWhile Univision lost to Telemundo the 2018 and 2022 World Cup broadcast rights (or it just didn’t want to pay as much), it still has a very sizable amount of broadcast rights including UEFA match rights as well as MLS and Mexican National Team performances in the U.S. In fact, it is well-known in the market that Univisioin recently bought U.S. broadcast rights of several Mexican Soccer Teams from Azteca America (including those of Atlas, Santos Laguna, Monarcas  de Morelia and Club Tijuana, Azteca will keep the rights for these clubs in the Mexican market).

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5. Less of a Debt Burden for Univision …

2013 ChallengesIn addition to a somewhat lackluster rating performance, what mostly has plagued Univision over the last few years is its very high debt load (US$ 9.3 billion at the end of 2015). This is the result of the 12.3 billion LBO (Leverage Buyout) of 2006, done at the top of the  market, which was led by financier  Haim Saban and other private investor groups. Struggling to make payments the company cut back on programming and late last year announced staff cuts of approximately 250 employees. Now with the increased Televisa stake and less debt, Univision’s financial freedom has increased.

6…. and less Pressure for an IPO, which Becomes less Likely

With the increased Televisa stake and investment Univision has less of a need to look for financing at events like an IPO. At current stock price levels of major U.S. broadcasters (depressed due to cord cutting and  other factors), Univision’s IPO price would be way below the US $ 12.3 billion valuation of the 2006 LBO. In fact, under this new scenario it is very unlikely that an IPO will happen anytime soon. However, in today’s press release Univision still talks about an IPO: “The FCC’s decision will enable Univision to accommodate increased foreign investment that may result from share purchases by the public in an IPO while enabling Televisa (an existing investor in, and business partner of, Univision) to increase its current equity stake in the company.”

What: The Federal Communications Commission (FCC) has decided that it will allow foreign investors to own equity in Univision beyond the mandated 25% cap on foreign ownership in U.S. radio and television companies, Radio and Television Business Report reveals. Foreign investors will now be able to own up to 49% of Univision’s stock and voting rights.
Why it matters: The FCC announcement opens the way for Televisa, a major Mexican media company, to increase its stake in Univision to 40% from its current 22% ownership. Televisa will do so by converting the Univision debt it owns into stock.  As a result, Univision’s sizable debt load will be reduced and it should be able to put more resources to strengthen its programming, which lately had lost ground against competitor Telemundo.

In July 2016  Univision requested the Federal Communications Commission (FCC) permission to increase Televisa’s stake in Univision from 10% to 40%.
The FCC now has granted permission to increase that stake to 40%. (Although it is not clear whether Televisa already holds a 22% stake as a result of a MOU with Univision announced on July 2, 2015.  At the time, Televisa said it planned to increase its stake in Univision to 22% and swap US $1.125 billion of Univision debt it held to equity shares.) In any case, with the new FCC ruling Televisa will be able to increase its stake to 40%, exchanging debt for equity, and Univision’s US $9.3 billion debt load (31.12.215) will be substantially reduced.

Univision’s debt load will be substantially reduced as a result of the FCC allowing Televisa to increase its stake

NHMC Supports Televisa Stake Increase

Several Hispanic organizations including the National Hispanic Media Coalition (NHMC) have written over the past months to the FCC (check filing August 29, 2016) favoring the increase of Televisa’s stake in Univision to 40%. Alex Nogales president of NHMC wrote that the “NHMC supports the Petition because of the potential it presents for American Latinos to tell their stories to the nation, in English and in Spanish. Univision has stated that Televisa’s past investments in Univision have resulted in the hiring of more American Latinos,and have resulted in an increase in its U.S.-based content production. NHMC is encouraged that Univision will utilize the capital infusion to further bolster its Spanish-and English-language programming in the United States and further grow its diverse talent pool.”

CHECK OUT: 6 Ways the FCC ruling will impact Univision and Hispanic Marketing

Join us at PORTADA Mexico!

What: Univision Holdings has requested the Federal Communications Commission (FCC) permission to increase from 10% to 40% Televisa’s stake in Univision. FCC reported that it will publish comments on the operation on August 8 and provide a  final answer on September 7.
Why it matters: Univision is attempting to do an IPO and Televisa is its main strategic partner and one of its main investors.

US Spanish-language network Univision Holdings has requested the Federal Communications Commission (FCC) permission to increase Televisa’s stake in Univision from  from 10% to 40%.

Televisa supplies about 35% of Univision’s television programming and more than half of its content across other platforms. Foreign companies can only own up to 25% stake in U.S broadcasters, that is why Univision is asking the FCC to make an exception.

The FCC reported that will publish comments on the operation on August 8 and will provide a final answer on September 7, Mexico’s El Proceso newspaper reported that Televisa received US $83.3 million in royalties from Univision during the second quarter of 2016.

Join us at PORTADA Mexico!

A summary of this week’s most exciting news in online video in the U.S. and Latin American markets. If you’re trying to stay up-to-date with these constantly-evolving markets, look no further.

U.S./HISPANIC MARKET:

ADOBE ANNOUNCES DIA FOR MPEG-DASH: The Mobile World Congress is under way, and of course the acronyms are the real stars of the event, because marketing wizards love to use them. Through its Primetime multiscreen video platform, Adobe will be offering dynamic ad insertion (DAI)  in MPEG-DASH video, complementing the already-implemented DAI-HLS stream features. If you didn’t understand any of that, this basically makes for more smooth TV transitions between content and advertising (no buffering). So that’s a good thing.

FRAUD GOES DOWN ON VIDEO ADS: Advertising technology company Integral Ad Science has released its Q4 2015 Media Quality Report, and apparently fraud for video ads (and display) purchased through networks and exchanges decreased in every quarter of the year. Video ad fraud decreased by a total of 28.6 percent throughout the year. Some types of video fraud plummeted: programmatic display saw a 33.3 percent decline. We can thank all of that new fraud prevention technology for that.

NEW LEADERSHIP AT THE INTERACTIVE ADVERTISING BUREAU: Leading and advising the digital advertising industry is no walk in the park, so we’re glad a strong woman is being put in charge to do it.  Lauren Weiner,  president of buyer platforms at video advertising software firm Tremor Video, is taking over as the new chair of its board of directors. Good luck, Lauren!

HACKERS VS. XBOX: In a possible declaration of war on gamers everywhere, online group New World Hackers, known for taking down services and websites, has claimed responsibility for recent online outages affecting Xbox Live. Apparently, they did it because they want to show these big servers that they have no protection in place, and even said they could  “honestly knock Xbox off the face of the Earth” if they wanted to.

The Latin Online Video Forum, part of #PortadaLat on June 8-9 in Miami’s Hyatt Regency Hotel, is going to bring together all the big players in online video in the Americas including key brand marketers such as Nestle, 3M, Volaris, Fallabella, Best Western and many more. Get your early bird tix!

LATIN AMERICAN MARKET

imagesCLARO TESTS 4G LIVE VIDEO SIGNAL FOR SAMSUNG IN BRAZIL: For the first time,  Claro‘s 4G network distributed a live video signal in a test for Samsung S5 and S6 smartphones. The América Móvil company carried out the test in conjunction with Net, Qualcomm, Ericsson, Globosat and Samsung. The companies reported that mobile HD signal had a three-second delay compared to Sportv‘s pay-TV feed, but the team was generally pleased with the results, as they consider the best ways to broadcast to large audiences in the region.

FACEBOOK LAUNCHES LIVE VIDEO FOR LATAM:  Facebook has launched their internal app Live Video, which Facebook-Live-Videoallows users to publish live video broadcasts on personal walls and fan pages, in Latin America. The transmissions cannot exceed 30 minutes and are only compatible with iPhones (sorry, Samsung fans).

TELEVISA TAKES A SECOND CRACK AT VIDEO-ON-DEMAND: Mexico’s Televisa, Veo, is hoping that the second time is a charm as they re-launch a streaming strategy in LatAm. Veo is releasing its VOD platform, blim, which has an extensive content portfolio of its own production houses’s content as well as films and series from all over the world. The platform will be available on iOS and Android devices, smart TVs and computers, as blim’s team hopes to make it the most-watched video platform in the region.

Guillermo AbudBATANGA HAS A NEW HEAD OF GLOBAL BUSINESS & PROGRAMMATIC: Regional digital publisher Batanga Media has named Guillermo Abud as Head of Global Business & Programmatic and Alexandre Jordao as CRO. Both are newly created positions and form a part of Batanga’s focus on branded content programs and programmatic partnerships.

FREDERATOR GOES AFTER LATAM: Federator Networks, owner of the animated network giant Channel Frederator, is teaming up with Latin American animation studio Ánima Estudios to create a Spanish-language animation network, The Átomo Network. And that’s not all – it will also offer translating and dubbing services to help Frederator channels reach Spanish-speaking audiences.

IMS Internet Media Services (IMS) and gamer community and video platform Twitch announced a partnership in which they will start selling advertising in LatAm.  Twitch allows gamers to watch and protagonist their own video game content and has a monthly audience of 100 million members and more than 1.7 million user submissions of content.  IMS will represent Twitch’s ad inventory in the region, focusing especially on Mexico and Brazil.

Related Articles: ONLINE VIDEO ROUND UP:  Spotify Goes After Video, NBC Universal And Latin Video, Piracy, Ad Blocking Trends In LatAm

What: From November 30 to December 27th, retailer Big Lots will be running the CELEBRA BIG! holidays campaign featuring “El Chavo,” the animated character based on the beloved Mexican television personality created by Roberto Gómez Bolaños.
Why It Matters:
Big Lots, which has over 1,400 stores in 48 states across the U.S., is making use of the iconic El Chavo character, licensed by Televisa, to connect with Hispanic, particularly Hispanic women. The campaign has TV, radio, video, and paid social components.

This year, Big Lots will be partnering with Blogsi Network (part of the Just Hispanics Group) to run an exclusively Spanish-language campaign and sweepstakes to target Hispanic Americans.

Blogsi Account Director Pacino Mancillas spearheaded the campaign’s strategy, commenting: “Our direct client, Jason Riveiro, is the multicultural manager at Big Lots. We were brainstorming ideas for the Holiday push and he came out with the idea of El Chavo ‘to connect’ with the hearts of our Hispanic shopper.”

To implement thechavo campaign, Blogsi and Big Lots teamed up with Univision Communications Inc (UCI) and its Consumer Products division, which serves as the exclusive licensee of the El Chavo brand in the U.S. and has a full line of branded merchandise sold at retailers all over the country.

Targeting Hispanic Women in Spanish

CELEBRA BIG! features a sweepstakes giving away gift cards worth $2,500 and an accompanying gift basket. A winner will be selected at random once a week during the duration of the campaign. To register, participants will need to sign up with their name, phone number and e-mail address.

Mancillas added, “The goal of CELEBRA BIG! is to make a connection between the iconic Hispanic character and the Big Lots brand, while showcasing the store and products that we carry.” While building a Hispanic consumer database will be a welcome consequence of the campaign, Big Lots is focusing on transmitting the great value and variety of products that Big Lots offers. The retail chain is particularly targeting Hispanic women, and all content will be in Spanish.

The goal of CELEBRA BIG! is to make a connection between the iconic Hispanic character and the Big Lots brand, while showcasing the store and products that we carry.

The campaign will be featured on television, radio and digital; there will be four TV spots on Univision Network’s different channels featuring special offers and deals, four TV spots featuring the sweepstakes. On radio, banners and video spots featuring special offers as well as the sweepstakes will air on Pandora and Uforia. For digital outreach, the brand will be releasing a special CelebraBIG! Sweeps landing page and conduct social media coverage on all of their existing channels.

HAVAS Media is doing the buying, and Televisa, whose licensed products are represented by Univision’s Corporate Products division, provided support for the design, licensing and strategy “throughout the entire production phase,” Mancillas said. “Televisa has been a great partner for us for over seven years. We know them very well: they understand our target perfectly, therefore we knew that this would bring a lot of good to the table.”

For more information, visit the Big Lots Latino page.

What: Brazilian beer brand Skol is the most valuable brand in Latin America, with 20% growth in 2015, taking its brand value to US$8.5bn. Last year’s number one Corona moves to second position with growth of 6% to US$8.5bn.
Why it matters: The ranking is once again dominated by Mexican brands with their contribution by value rising from 33% last year to 37% in 2015, led by the strong performance of Corona, Telcel and Televisa.Value of the top 50 increases 2% despite region’s economic struggles.

For the first time, Brazilian beer brand Skol is the most valuable brand in Latin America, according to the fourth annual BrandZ™ Top 50 Most Valuable Latin American Brands ranking announced by WPP and Millward Brown. The AB InBev beer brand has risen 20% in 2015, taking its brand value to US$8.5bn. Corona, last year’s number one moves to second position with growth of 6% to US$8.5bn.

The ranking reveals that Latin America’s leading brands have continued to defy tough economic conditions, growing the Top 50’s cumulative value to US$132bn, an increase of 2% in US dollar terms. The BrandZ™ Top 50 has consistently outperformed local stock indexes and 2015 was no exception. By comparison, a composite index from the six key exchanges in the region dropped by 14% this year. This proves the importance of investing in brands even in hard times.

The BrandZ Top 10 Most Valuable Latin American Brands 2015

Rank 2015BrandCategoryBrand Value 2015($M)Brand Value Change YoYRank Change  YoYCountry
1SkolBeer8,50020%+1Brazil
2CoronaBeer8,4766%−1Mexico
3TelcecCommunication Provider6,17416%+1Mexico
4BradescoFinancial Institution5,20225%+1Brazil
5FalavellaRetail4,709-23%−2Chile
6TelevisaCommunication Provider4,42322%+1Mexico
7ItaúFinancial Institution4,31528%+6Brazil
8BrahmaBeer4,18517%0Brazil
9AguilaBeer3,6723%0Colombia
10ModeloBeer3,6044%0Mexico

The ranking is once again dominated by Mexican brands with their contribution by value rising from 33% last year to 37% in 2015, led by the strong performance of Corona, Telcel and Televisa.

  • Brazilian brands took 24% of the listing value, with Beer, Food and Personal Care brands contributing 47% of that total.
  • Chile lost share down to 15% from 20% in 2014.
  • Colombia declined one point year on year to 15%.
  • while Peru and Argentina both gained a single point to contribute 5% and 2% of the total value respectively.

jpg_CTA-Latam_RegisterNowLuxury Goods and Services Marketing is going to be very well represented at our upcoming 7th Annual edition of the Portada LatAm Summit in Miami June 3 and 4. We just got the confirmation from 4 major players in the Latin American Luxury Goods and Services Sector:

Pedro Tabera, President and General Manager, Mercedes Benz Mexico

 

 
Alexis Thanasoulas, Managing Director Latin America, ZenithOptimedia Group

 


Stephanie Peña,
Regional Sales Director Americas, Longchamp and Javier Martinez Staines, Director General Editorial, Televisa have also confirmed their presence. More brand marketers will be confirmed in the next few days!

Tickets are going very fast, register here at the online promotion rate! 

The above brand marketers, agency executives and media companies will  dissect the main trends in Latin American luxury goods marketing and address questions including the below:
– What moves Latin Americans to acquire Luxury Goods and Services?
-Panregional vs. local Marketing, when is there tension, when do they complement each other?
– Paid Media and Content Marketing in the Luxury Sector

Other key brand marketers participating in #Portadalat include:
Denisse Guerra, Regional Marketing Director Latin America, The Estee Lauder Companies
Manuel Medina Riveroll, Marketing Director, Bayer Mexico
Jon Suarez Davis, VP Global Media Strategy, Kellogg Company
Ivan Ahedo, Marketing Director, Comex
Carlos Espíndola, Gerente eHub Latinoamérica, 3M
Maya Kosovalic, Digital and Media Communications Manager, L’Oreal
and many more!

What: Magazine publisher Televisa is pulling the plug on its Puerto Rico operations as of December 5 leaving about 50 workers jobless.
Why it matters: Puerto Rico is a major media and advertising  market. Having a major publisher like Televisa fold the local Puerto Rican editions of many of its magazines  is a significant and telling move.

descarga (1)Televisa’s editorial management from the Mexico-based company has taken employees , who work in local publications of that company, by surprise after announcing the closure of operations in Puerto Rico, effective December 5.

Approximately 50 workers will be left jobless after the closing of the offices that produce the publications locally. These magazines include Caras, TV y Novelas and Vanidades Puerto Rico. These magazine are also published digitally.

Executives from Televisa Publishing and Digital offices in Mexico gathered all employees to notify them of the closure..The news came as a surprise as nothing like that was expected, especially because of Televisa’s recent promotional activities related to Caras magazine’s 25th anniversary, a celebration that took place at  El Convento en Viejo San Juan hotel.

No local personnel were authorized to issue official statements on the closure of Televisa Publishing’s Puerto Rico operations.

What: Magazine publisher Televisa is pulling the plug on its Puerto Rico operations as of December 5 leaving about 50 workers jobless.
Why it matters: Puerto Rico is a major media and advertising  market. Having a major publisher like Televisa fold the local Puerto Rican editions of many of its magazines  is a significant and telling move.

descarga (1)Televisa’s editorial management from the Mexico-based company has taken employees , who work in local publications of that company, by surprise after announcing the closure of operations in Puerto Rico, effective December 5.

Approximately 50 workers will be left jobless after the closing of the offices that produce the publications locally. These magazines include Caras, TV y Novelas and Vanidades Puerto Rico. These magazine are also published digitally.

Executives from Televisa Publishing and Digital offices in Mexico gathered all employees to notify them of the closure..The news came as a surprise as nothing like that was expected, especially because of Televisa’s recent promotional activities related to Caras magazine’s 25th anniversary, a celebration that took place at  El Convento en Viejo San Juan hotel.

No local personnel were authorized to issue official statements on the closure of Televisa Publishing’s Puerto Rico operations.

What: Spanish-language media company Televisa and MiTú have signed a multiyear multiplatform deal, under which they will jointly develop and distribute original programming in different formats. Televisa executives also explained at last week’s IAB Mexico Conference (coverage in Spanish) that Digital is now the “DNA” of Televisa’s content production system.
Why it matters: The agreement will allow Televisa to  leverage MiTu’s digital experience and its’ catalog of new Latino talents to develop content, concepts and innovative formats for various digital platforms.

Televisa_Jose_Baston-Spanish-language media company Televisa and MiTú , an Internet-media and digital platform company focused on Latino audiences, have signed a multiyear multiplatform deal, under which they will jointly develop and distribute original programming in different formats. The Spanish-language producer will be using MiTu’s digital experience and roster of YouTube talent to develop content and formats for online media. Televisa will also distribute MiTu’s English- and Spanish-language content. Financials of the agreement were not disclosed.

Televisa president Jose Antonio Bastón (photo), said at last week’s IAB Mexico Annual Conference (see our Spanish-language coverage) that the agreement will allow Televisa to  leverage MiTu’s digital experience and its’ catalog of new Latino talents to develop content, concepts and innovative formats for various digital platforms.

Digital, now the DNA of Televisa’s Content Production

“Since we started in the digital industry over 14 years ago, we have made a big effort to understand the changing habits of a new generation of consumers. As a result of this  effort we started a deep process of transformation in the way Televisa approaches the digital realm, “he said.

Our digital efforts have changed from being a single business unit  to become the intrinsic DNA of our content production.

During his participation in the 2014 edition of IAB Connecta, Bastón explained that “interactivity” is  the key word  around which Televisa’s digital strategy will be based in order to maintain its global leadership in the production and distribution of  multiplatform Spanish-language programming.

The four strategy pillars:

  • Splitting own productions to digital platforms
  • Specific content development for digital native audiences
  • Strategic alliances
  • World class technological support

During the IAB Mexico conference, Bastón explained that the first pillar is the splitting of current content on digital platforms, as already happened during the 2014 Soccer World Cup in Brazil.

“The number of users who used our digital offering was extraordinary, almost 11 million. During some matches broadcasted on TV, the digital offering even beat pay-TV platforms in terms of audience,” assured Bastón.

Content production for digital native audiences is the strategy’s second pillar of the strategy, and for that matter productions like LOGOUT will be held, ​​airing from 2015 onwards.

“A product made from its origin to the second screen to the second screen, what does this mean? That there is a product produced you see on the original screen and there also a product produced you’re watching at the same time while solely on the digital platform,” he specified.

Strategic alliances and technological support are the third and fourth pillars, and along with them is where the partnership with MiTu lays.

Four pillars in Televisa’s Digital Ecosystem

Bastón says that to design the current strategy , they first defined a digital ecosystem on four basic elements linked to exclusive content production:

  • televisadeportes.com
  • noticierostelevisa.com
  • TV
  • Entertainment

“We are also integrating TV channels properties and paying specific niches such as music, film, radio, and publiching and film production.”

Bastón pointed out that all Televisa’s digital efforts have five common denominators: They are linked to exclusive content, have a high commercial potential, are born with a multi-platform logic, see interactivity as an opportunity to adapt content and increase engagement with brands .

He also recalled that, some time ago, the splitting to digital was limited to broadcast on digital  the same contenton television.

“Today we have learned to produce specific content that is later complemented on different screens. Our original writers imagine and develop their stories considering a multi-screen approach. ”

#PortadaLat has now begun, with the Online Video Forum and a presentation by Portada’s publisher, Marcos Baer, on central points that will be addressed during the LatAm Summit: programmatic buying, online video, the relationship between technology and marketing, as well as content marketing, among other topics.

Baer introduced the panel with the question, “What should we think about the reliability of online video metrics today?” In this field, he said, we are “in something like the Wild West.”

After Marcos Baer’s presentation, the panel began with an introduction by moderator Cynthia Evans, managing director of Group M Latin America, and initial remarks on “What is content video” from each of the panelists: Artie Bulgrin, SVP global research & analytics, ESPN; Josh Chasin, chief research officer, comScore; and Marilyn Aldir, digital director of Editorial Televisa.

196187fArtie Bulgrin (photo), SVP global research & analytics, ESPN, noted that what ESPN seeks is to offer content through a range of different platforms, so they will be available to viewers all the time. That means it is “very hard to measure this, it’s very hard to measure chaos,” he pointed out. Bulgrin added that “we’re used to a digital world where we measure everything.”

“What we need to measure is ‘how many, how often, how long’ on the different screens,” Bulgrin stated. “What is our situation now? I think we’re close to a way of measuring this in multiple platforms.”

Bulgrin noted out that “50% of our sales are multi-platform.”

jcFor his part, Josh Chasin (photo), chief research officer, comScore, stated that comScore is working to “be the best in the class” and to be able to measure outcomes in the different multi-platforms. He also observed that “TV is becoming a digital medium, if it isn’t already – that is what we’re going to see and what we have to work with in terms of metrics.”

The third panelist, Marilyn Aldir, digital director of Editorial Televisa, said that today it is no longer possible to think in terms of TV audience alone, given the interaction occurring with digital media at the same time. “These days the challenge is to sell multi-platform advertising; we need to be able to measure interactions and engagement,” Aldir stated.

In response to Cynthia Evans’ question about how to measure frequency during a campaign, all of the panelists agreed that this is the core of the problem. The panel ended with questions from the audience.

#PortadaLat has now begun, with the Online Video Forum and a presentation by Portada’s publisher, Marcos Baer, on central points that will be addressed during the LatAm Summit: programmatic buying, online video, the relationship between technology and marketing, as well as content marketing, among other topics.

Baer introduced the panel with the question, “What should we think about the reliability of online video metrics today?” In this field, he said, we are “in something like the Wild West.”

After Marcos Baer’s presentation, the panel began with an introduction by moderator Cynthia Evans, managing director of Group M Latin America, and initial remarks on “What is content video” from each of the panelists: Artie Bulgrin, SVP global research & analytics, ESPN; Josh Chasin, chief research officer, comScore; and Marilyn Aldir, digital director of Editorial Televisa.

196187fArtie Bulgrin (photo), SVP global research & analytics, ESPN, noted that what ESPN seeks is to offer content through a range of different platforms, so they will be available to viewers all the time. That means it is “very hard to measure this, it’s very hard to measure chaos,” he pointed out. Bulgrin added that “we’re used to a digital world where we measure everything.”

“What we need to measure is ‘how many, how often, how long’ on the different screens,” Bulgrin stated. “What is our situation now? I think we’re close to a way of measuring this in multiple platforms.”

Bulgrin noted out that “50% of our sales are multi-platform.”

jcFor his part, Josh Chasin (photo), chief research officer, comScore, stated that comScore is working to “be the best in the class” and to be able to measure outcomes in the different multi-platforms. He also observed that “TV is becoming a digital medium, if it isn’t already – that is what we’re going to see and what we have to work with in terms of metrics.”

The third panelist, Marilyn Aldir, digital director of Editorial Televisa, said that today it is no longer possible to think in terms of TV audience alone, given the interaction occurring with digital media at the same time. “These days the challenge is to sell multi-platform advertising; we need to be able to measure interactions and engagement,” Aldir stated.

In response to Cynthia Evans’ question about how to measure frequency during a campaign, all of the panelists agreed that this is the core of the problem. The panel ended with questions from the audience.

The 7th Annual Portada Latam Advertising and Media Summit will take place on June 4 and 5 2015 in Miami

What: Through this agreement, Sony Pictures will produce 12 teleseries for broadcast in Mexico and for U.S. Hispanic Audiences.
Why it matters: While Sony Pictures will handle the distribution across Latin America, Televisa will distribute across the east and south of Europe. They will jointly distribute the series throughout the rest of the world.

sonytelevisaSony Pictures Television (SPT) and Televisa have announced that they have closed a deal to co-produce 12 series ,which involves 840 total hours of television , over the next five years for broadcast in México. SPT will produce the series in México featuring some of Televisa’s actors. In addition, the series will air in the U.S. on Univision’s Spanish-language broadcast network UniMás.

Following the agreement, SPT will handle the distribution across Latin America, while Televisa will distribute across the east and south of Europe; SPT and Televisa will jointly distribute all 12 series throughout the rest of the world.

SPT Latin America- along with its production company Teleset- already develops , produces and co-produces Spanish-language programming for audiences across Latin America and the U.S. Hispanic market. The studio was the initiator of the teleseries genre and currently produces some series including “Rosario Tijeras,” “La Prepago,” “El Mariachi,” “Metástasis” and “En la Boca del Lobo.”

“The size of this commitment is indicative of the significance and evolution of our partnership with our friend Jose Bastón and his team at Televisa”, said Andrea Wong, president of international production for SPT and the president of international for Sony Pictures Entertainment.

“By combining Televisa’s talented actors with Sony Pictures Television’s production expertise, we are elevating the teleseries genre to a whole new level as a world-class form of entertainment. We are looking forward to producing a variety of high-caliber primetime series that are fresh and relevant to our Latin American viewers and also have global appeal”, said Angélica Guerra, senior vice president and managing director of production for Latin America and U.S. Hispanic for SPT.

“We believe that this new deal complements the capability of our production companies and will generate a variety of innovative and high quality content that is distinct from the programming genres we traditionally produce and will provide for more programming choices in the growing Mexican television broadcasting market”, said Jose Bastón, president of Television and Content for Televisa.

“Expanding our relationship with Sony Pictures speaks to the commitment of UniMás to continue to deliver the best, alternative dramatic series–a strategy that is driving its growth and popularity and making it the #2 Spanish-language network in the U.S. in key time periods”, said Alberto Ciurana, president, Programming and Content, Univision Communications, Inc.

What: Through this agreement, Sony Pictures will produce 12 teleseries for broadcast in Mexico and for U.S. Hispanic Audiences.
Why it matters: While Sony Pictures will handle the distribution across Latin America, Televisa will distribute across the east and south of Europe. They will jointly distribute the series throughout the rest of the world.

sonytelevisaSony Pictures Television (SPT) and Televisa have announced that they have closed a deal to co-produce 12 series ,which involves 840 total hours of television , over the next five years for broadcast in México. SPT will produce the series in México featuring some of Televisa’s actors. In addition, the series will air in the U.S. on Univision’s Spanish-language broadcast network UniMás.

Following the agreement, SPT will handle the distribution across Latin America, while Televisa will distribute across the east and south of Europe; SPT and Televisa will jointly distribute all 12 series throughout the rest of the world.

SPT Latin America- along with its production company Teleset- already develops , produces and co-produces Spanish-language programming for audiences across Latin America and the U.S. Hispanic market. The studio was the initiator of the teleseries genre and currently produces some series including “Rosario Tijeras,” “La Prepago,” “El Mariachi,” “Metástasis” and “En la Boca del Lobo.”

“The size of this commitment is indicative of the significance and evolution of our partnership with our friend Jose Bastón and his team at Televisa”, said Andrea Wong, president of international production for SPT and the president of international for Sony Pictures Entertainment.

“By combining Televisa’s talented actors with Sony Pictures Television’s production expertise, we are elevating the teleseries genre to a whole new level as a world-class form of entertainment. We are looking forward to producing a variety of high-caliber primetime series that are fresh and relevant to our Latin American viewers and also have global appeal”, said Angélica Guerra, senior vice president and managing director of production for Latin America and U.S. Hispanic for SPT.

“We believe that this new deal complements the capability of our production companies and will generate a variety of innovative and high quality content that is distinct from the programming genres we traditionally produce and will provide for more programming choices in the growing Mexican television broadcasting market”, said Jose Bastón, president of Television and Content for Televisa.

“Expanding our relationship with Sony Pictures speaks to the commitment of UniMás to continue to deliver the best, alternative dramatic series–a strategy that is driving its growth and popularity and making it the #2 Spanish-language network in the U.S. in key time periods”, said Alberto Ciurana, president, Programming and Content, Univision Communications, Inc.

What: Telefónica is trying to merge with Mexican operator Iusacell to fight América Móvil dominance in  Mexico .
Why it matters: Law reforms to fight the lack of competitiveness in the country are about to be implemented. Telefónica is planning to increase its share in Mexico’s mobile sector following the reforms.

telefonicaTelefónica is trying to merge with Mexican operator Iusacell to fight América Móvil Mexico’s dominance .

Lack of investment and competition in the Mexican market are mainly due to América Móvil’s strong market position, as the company controls around 70% of the country’s mobile lines and 80% of the fixed line telephony market. This involves a low penetration of telecommunications services forcing Mexicans to overpay for telecommunications services. Between 2005-09 telecommunications services spending reached over US $13 billion.

Widespread reforms to the telecoms industry were signed last year by President Enrique Peña Nieto so as to fight the lack of competitiveness in Mexico’s telephony and television sectors.

These reforms aim to strengthen regulatory institutions to combat monopolies, among other things.They may also allow investment in the Mexican telecoms market to increase to US $55 billion in 2018 compared to US$35 billion in 2012.

Telefónica is planning to increase its share in Mexico’s mobile sector following the reforms. The company had a share of 18.5% of the country’s mobile market with 19.1mn clients at the end of third quarter 2013, while Iusacell’s had a mobile customer base of around 7.4mn as of the end of 2012.However, telefonica has already started to strenghten  its position in the country by providing data and voice coverage for NII Holdings’ Nextel .

Telefonica-Iusacell merger’s dilemma

Despite América Móvil’s dominant share in Mexico’s telephony market, the company has failed to enter the country’s TV sector.

TV sector is already dominated by Televisa and TV Azteca which have a combined 95% share of the country’s broadcast TV market. In addition, Televisa owns half the pay TV segment and has recently acquired a 50% stake in Iusacell. The remaining 50% stake is retained by TV Azteca owner Grupo Salinas.

A Telefonica and Iusacell merger could result in  a strong player across the mobile and pay TV segment , if Televisa or Grupo Salinas were to retain any minority stake in the telecoms operator.This may cause something of a dilemma, as many investments from competitors will be required to reduce América Móvil’s position on the Mexican market. In this regard, regulators may not be willing to allow further market consolidation, given that the aim of the reforms is to provide more options to consumers, rather than less.

Most players will be looking forward the release of the secondary telecoms reform proposals, which will include details that allow companies to meet the terms of the telecoms reform, such as type of penalties and fines to be faced by companies for monopolistic practices.

 

What?  “Instrucciones no incluidas” (“Instructions Not Included”), generated US $10 million in ticket sales over the four-day Labor Day weekend, a record for a Spanish film in the United States. The film is distributed by Pantelion, a joint venture of Hollywood studio Lionsgate Entertainment and Televisa.
Why it matters: The strong showing is another sign of the potential the Hispanic market represents for Hollywood. The film ranked fifth among films in U.S. theaters over the Labor Day weekend, despite opening in only 347 theaters.  Bestseller “The Butler”,  showed in 3,300 theaters.

“Instrucciones no incluidas” (“Instructions Not Included”), which has English-language subtitles,  stars 52-year-old Mexican TV star Instructions not IncludedEugenio Derbez as an Acapulco playboy forced to raise a baby girl left on his doorstep.  As a result of the fact that it was shown in few theaters and had strong sales, “Instrucciones no incluidas” generated average ticket sales of US $28,818 per screen, more than four times the average of “Lee Daniels’ The Butler,” the weekend’s top film. Before last weekend’s record of  “Instrucciones no incluidas”, the biggest-selling Spanish-language film in the United States was  “Pan’s Labyrinth,” a horror film directed by Spain’s Guillermo del Toro, that opened in 2007 with $4.5 million on its first weekend. “Instructions Not Included,” with its Mexican setting, may have resonated with the U.S. Hispanic audience, which includes many Mexican immigrants, than “Pan’s Labyrinth,” which is set in Spain in 1944. “No one saw this coming,” Paul Dergarabedian, president of the box office division of Hollywood.com told Reuters.

The movie sold US $10 million less than bestseller The Butler which was shown in ten times as many theaters.

Marketing Campaign

To tap that market for “Instructions Not Included,” Pantelion put ads on Univision, Telemundo and other Spanish-language TV networks as well as social media sites like Fandango, Facebook and Youtube that are heavily used by the Hispanic population. Another important component was the sponsorship of Univision’s annual “Premios Juventud” awards in July. Pantelion also relied heavily on Derbez, who promoted the film to his 3.2 million Twitter followers and 1.5 million “likes” of his official Facebook page.

Pantelion, whose formation was  announced in 2010 by Lionsgate CEO Jon Feltheimer and Grupo Televisa CEO Emilio Azcarraga, intends to produce 8 to 10 films a year targeting Spanish-speaking audiences in the United States and Mexico. Hispanic movie going  audiences last year bought 10.9 million tickets or 26 percent of all tickets sold, according to the industry group Motion Picture Association of America. According to a Nielsen study, Hispanics are heavy moviegoers as they represent 18%of the moviegoing population but account for 25% of all movies seen.” Pantelion is by no means the only group targeting the Hispanic movie goer. “” The Hispanic audience continues to be an important target audience for Universal Pictures.” Fabian Castro, VP Multicultural Marketing, Universal Pictures, told Portada earlier this year.  “A huge opportunity for us will be mobile and tablet use, since it is fast developing into Hispanics preferred source of information for movie content, trailers and show times in both English and Spanish. We will definitely be developing strategies that involve mobile in all levels of moviegoer’s purchasing funnel.” Castro added.

Top Ten Labor Day Weekend Box Office Sellers

1. Lee Daniels’ The Butler (Weinstein) Week 3 [Runs 3,330] PG13
Friday US $3.6M, Saturday US $5.5M, Sunday US $5.7M
3-Day Weekend US $14.8M, 4-Day Holiday US $20.0M, Cume US $79.3M

2. One Direction: This Is Us 3D (TriStar/Sony) NEW [Runs 2,735] PG
Friday US $8.8M, Saturday US $4.0M, Sunday US $2.9M
3-Day Weekend US $15.7M, 4-Day Holiday US $18.0M

3. We’re The Millers (New Line/Warner Bros) Week 4 [Runs 3,445] R
Friday US $3.1M, Saturday US $4.5M, Sunday US $4.9M
3-Day Weekend US $12.6M, 4-Day Holiday US $16.3M, Cume US $113.3M

4. Planes 3D (Disney) Week 4 [Runs 3,259] PG
Friday US $1.7M, Saturday US $2.9M, Sunday US $2.9M
3-Day Weekend US $7.5M, 4-Day Holiday US $10.5M, Cume US $73.6M

5. INSTRUCTIONS NOT INCLUDED/INSTRUCCIONES NO INCLUIDAS
(Lionsgate) NEW [Runs 347] PG13
Friday US $1.9M, Saturday US $2.7M, Sunday US $3.1M
3-Day Weekend US $7.8M, 4-Day Holiday US $10.3M

6. Elysium (Sony) Week 4 [Runs 2,539] R
Friday US $1.5M, Saturday US $2.3M, Sunday US $2.4M
3-Day Weekend US $6.3M, 4-Day Holiday US $8.2M, Cume US $80.4M

7. The Mortal Instruments (Screen Gems/Sony) Week 2 [Runs 3,118] PG13 Friday US $1.4M, Saturday US $2.0M, Sunday US $1.9M
3-Day Weekend US $5.4M, 4-Day Holiday US $6.8M, Cume US $24.3M

8. The World’s End (Focus Features) Week 2 [Runs 1,553]
Friday US $1.4M, Saturday US $1.8M, Sunday US $1.8M
3-Day Weekend US $4.9M, 4-Day Holiday US $6.5M, Cume US $18.4M

9. Percy Jackson: Sea Of Monsters 3D (Fox) Week 4 [Runs 2,393] PG
Friday US $980K, Saturday US $1.7M, Sunday US $1.7M
3-Day Weekend US $4.3M, 4-Day Holiday US $5.9M, Cume US $56.5M

10. Getaway (Warner Bros) NEW [Runs 2,130] PG13
Friday US $1.4M, Saturday US $1.5M, Sunday US $1.4M
3-Day Weekend US $4.4M, 4-Day Holiday US $5.5M

Source:
 
Deadline.com
Note: Top Ten movie based on the 3-day weekend/4-day holiday sales estimates

Join us at PORTADA Mexico!

 

Televisa announced a deal with UK Social Media Start-up SharetheMatch to launch football-based social network in Mexico.  The deal brokered gives SharetheMatch a three-year exclusive partnership for the territory.

Reaching over 90 million football fans from Televisa’s existing audience, the global social network will be re-branded Vivafut for Mexico. The network will be available via mobile, computer or smart TV.

SharetheMatch enables fans to upload predictions, comments, photos and videos to create live ‘fanstreams’, which can be shared with supporters all over the world. In addition, there are live match updates with news of goals, cards and substitutions as they happen. Users can also collect virtual badges and compete to become their team’s Number 1 Fan.

The latest version of SharetheMatch is free to download for iPhone and android devices and covers every major professional football league in the world and is translated into 12 languages.

Televisa´s coverage includes the exclusive rights to show more than 150 live games from Mexico’s Liga MX and Mexico National team.

SharetheMatch is a VC-backed company and secured funding from London–based private equity firm Talis Capital in June 2012.

Televisa Publishing and Digital just announced the launch of the Texas Edition of Poder Hispanic, a
a business and lifestyle publication targeted at English-speaking business-minded Latinos.  Mariano Faget,  Texas Sales Director at Televisa Publishing + Digital, tells Portada that the Texas  edition will have a circulation of 150,000.  The national circulation of Poder Hispanic  is 400,000. “Texas subscribers will obviously receive the Texas edition only.” The launch of the Texas edition of Poder reflects the strength of the oil-driven  Texas economy and its advertising and media markets.  Faget notes that  “The Texas market is growing in both advertising and subscriptions. ”

Similar to the national edition, Poder Hispanic Texas will focus on the local corporate and entrepreneurial community and provide its readers an in-depth look at the business landscape at large. This is the second regional edition of Poder Hispanic. It also publishes Poder Miami with a circulation of 125,000.

Strong Texas, Strong Print Advertising

Texas FlagHearst’s La Voz de Houston recently increased its distribution to twice a week and raised its circulation to 405,000. Contrary to the general  malaise in the  magazine market, print media properties have been growing in Texas. This is the case of the Emmis Communications owned Texas Monthly.  It has a circulation of 300,000. Texas Monthly chronicles life in contemporary Texas, writing on politics, the environment, industry, and education. The magazine increased ad sales last year by 7,2% to US $75 million.  Texas Monthly Publisher Amy Banner Saralegui said last year to Minonline that : “Every category is up, local and national are up, all of our existing advertisers are back and increasing and many of our prospects are converting to advertisers…  Texas is just doing well, and Texas Monthly is doing even better than that.”    Televisa’s Faget says that Poder Hispanic  is ” the clear Hispanic alternative  to Texas Monthly mirroring a similar demographic.  Advertisers cannot ignore this segment in this market.   The strong advertising categories include financial, regional auto, retail, education, tourism, spirits and all insurance.” Faget adds that “the Poder Hispanic Texas edition will serve the burgeoning Hispanic business market in Texas.”