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2009

Seventh Annual Hispanic TV Summit presented by Multichannel News and B&C / Florida Media Market

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H i s p a n i c TV A d S a l e s M a r k e t

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Transition

Retiring

CNN’s US Sales department will now assume ad sales for their Hispanic signal CNN en Español. Chris Crommet, Senior VP of CNN en Español, indicated that WorldLink would continue to work with the channel in this area until the transition is completed, by the end of the year. “This move will simplify the purchase of sales packages that encompass no only CNN but also other signals, such as HLN.”

Chris Crommett

After nearly 20 years with Univision, Ray Rodríguez, COO and president of Univision Communications will retire at the end of this year. César Conde, most recently executive vice president and chief strategy officer, will become president of Univision Networks, and Joe Uva, CEO, will assume the additional title of president of Univision Communications. “With a clear path for future growth, today Univision is in great shape,” says Rodríguez.

Ray Rodríguez

New kid on the block

National debut

Via an alliance with Alterna´TV, Mexican channel Hola TV is entering the Hispanic US market. Distribution will be on the multicast platform model provided by the new era of digital open TV. “The US market holds great potential for us. We know that the product is successful because it has not been on TV before. This is the first company built by young Mexicans seeking to promote the value of all Latin America,” says Yasser Beltrán, president of Hola TV.

Yasser Beltrán

After the exit of Ibra Morales, who was in charge of operations of the new network Estrella TV that is debuting nationwide, the network’s Director of Distribution & Television Syndication, Bill García, is working closely with senior management, guiding Estrella TV’s impending launch and overseeing affiliate station relations. “We are very satisfied with Estrella TV. We already have our own channel in New York (WASA) and six more in Los Angeles, Houston, Dallas, San Diego, Salt Lake City and Phoenix, and we have signed many markets.”

Bill García

CHIEF-EDITOR: Ríchard Izarra - MAIN EDITOR: Maribel Ramos-Weiner - EDITORS:

ADMINISTRATION: María Paula Capuya, Luciana Conde, Gueylin Méndez, Verónica

Patricia Blanco, Marcela Tedesco, Cynthia Plohn, Ezequiel Iacobone, Lucas Robledo,

Franco - ART: Sergio Szwarcberg, Liliana Martínez - PHOTOS & VIDEOS: Ana Magnani,

Diana Rojas, Constanza Kong - SALES & CUSTOMER SERVICE: Lemar Guzmán, Roko

Sofía Izarra, Luz Nis - SYSTEMS: Mauricio Roda - TRANSLATION: Ana Delon

Izarra, Valeria Nardecchia, Sebastián Novacovsky, Mara Fernández, Amy Ibarra, Kalú

37 NE 28th St. Miami, FL 33137, EE UU

Fermandois - PRODUCTION: Andrea Jurado - DATA: Francisco Gutiérrez, Paula Burela,

INFO: info@produ.com; ventas@produ.com;

Cintia Baudino, Emiliano Mussi, Catalina Ochoa, Federico Bianchi

subscriptions@produ.com - T +1-305-256-6774

Innovating

Five years after its launch, Hispanic signal Latele Novela Network is approaching the 1.5M subscriber mark and fine-tunes the launch of its video streaming and VOD services over the Internet. “Latele Novela has certainly been an innovative channel. Although many had no faith in this project, Latele Novela worked out and is doing great. We’ve signed new agreements and have new telenovela launches almost every month,” points out Alex Kochen, COO of Dreamhouse Entertainment, owners of the channel.

Alex Kochen

Expensive

Matt Polka, president and CEO of the American Cable Association (ACA), comments that many member cable operators are at odds with Univisión because of their retransmission consent fees (one dollar per subscriber). “That is already a lot of money when you’re talking about the larger networks like NBC, ABC, Fox, but it’s even more excessive for Univisión, which, in terms of ratings, is not to par.”

Polka indicated that some cable operators would not carry the network if it doesn’t reduce the fees.

Low on cash flow

Jeff Abbas, head of the National Cable Television Cooperative (NCTC), stated during The Independent Show 2009 that the greatest concern for independent cable operators is the lack of liquidity in the market to finance system and technology upgrades.

He did highlight, however, that those cable operators that do not depend on credit are doing well and have shown growth of their subscriber bases.

Jeff Abbas

Rejuvenated heart

Matt Polka

Televisa is producing the fourth remake of its successful Corazón salvaje, an original telenovela by Caridad Bravo Adams, now starring Aracely Arámbula and Eduardo Yáñez as the classic Juan del Diablo, and with Salvador Mejía as general producer. Since the expectations regarding the product are so huge, Mejía is adding the plot of Yo compro esa mujer, by Olga Ruilópez, to this version. “Corazón salvaje is the second most sold telenovela after Marimar. It is evident that we are facing a great challenge.”

Salvador Mejía

www.produ.com

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Hosted by Hollywood actor/Latin American star Cristian de la Fuente, this reality competition will pit 14 professional artists who have not yet had their big break and give viewers the chance to select Latin music’s next big superstar. Coming from the U.S., Latin America and Spain, these performers have all had a taste of the limelight.

After each performance, model/actress Carolina Guerra provides all the details and reactions from backstage.

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With a cast that includes Alejandra Lazcano, Cristóbal Lander, Rafael Sánchez Navarro, Claudia Álvarez, Leonardo Daniel and Alejandra Maldonado, this telenovela tells the story of Daniela (Lazcano), who loses her mother as an infant, while her father is unfairly accused of her death.

Daniela is exploited and forced to beg for survival, and for this she is known as Diabla (Devil).

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The objective of this interactive program focused on Mexican soccer and the recent events in the Mexican selection is to provide the audience with a closer contact with their favorite teams. The show, presented by commentators Eugenio Díaz, Antonio Carlos Santos, Fabián Estay, Pilar Pérez and Bonifacio Núñez, encourages the participation of the public via phone, email, text messaging and the Web

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This show, presented in a novel infotainment format by Camilo Egaña and Alfonso ‘Poncho’ de Anda, focuses on current events from a different perspective that include interviews with personalities and common people, but with a story to tell that links them to the show. The show includes live satellite links with the main US Hispanic markets and Internet resources via Skype connecting to opinions from the public.

www.produ.com

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This webnovela starring Kate Del Castillo and Isa TKM is a musical telenovela for youth Guy Ecker is the result of a partnership coproduced by Nickelodeon Latin between Univision Interactive Media, America and Sony Pictures Television Endemol USA and Amistad Productions. It (SPT) that covers the adventures of a was written by Estela Sainz and produced teenager’s life, from breakups to dreams, by renowned executive producer Carlos ambitions, and love. The show centers Sotomayor. It tells the story of Mariana on Isa, who was given up for adoption (Del Castillo), who swears she’s done with by her teen parents. Isa TKM was shot love after putting a lengthy in Venezuela.I X T H E W E W and E W R S T by Cinemateriales R T H C O NendNto I F T H I O R T H I N N E F S F F and fruitless relationship. In the process of S Sdecisions, sheSmeetsS S S making life-changing P N E A N E R N E N N E E A EN E A N E A E A I S A S O S O S I O S O A S O S O S O O D S O Daniel (Ecker), her soul mate.

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Radio and TV journalist Denny Alfonso presents current events of US and the World. She delivers a thorough but brief and concise report of the news that Hispanics living in the US need to know.

Experts analyze news on the economy, politics, immigration and Latin America with an agile style and in Spanish.

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A story about children that have everything and learn to covet more, starring Aylín Mujica, Fabiola Campomanes and Carmen Villalobos. This telenovela was produced by RTI Colombia for Telemundo and directed by Rodolfo Hoyos and Santiago Vargas. Hugo León Ferrer is the executive producer.

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Cynthia Hudson Mega TV

César Díaz Venevision International

Alberto Santini Azteca América

Bilai Joa Silar Discovery

“Our objective in the past few years has been to gain relevance among the Hispanic US audience. We know it is a very diverse audience, that the audience in the East Coast is quite different from that of the West Coast, but in the long run we celebrate what we have in common.”

“Capitalization of new media, the 360 degree platform has begun, and it is something all of us are paying attention to; the concept of webisodes that everybody is using; and how to use the platforms so they complement one another.

“There’s no need to reinvent the wheel: the telenovela is already a renowned, established, genre. For 50 years it has been proven that the successful telenovelas follow the traditional melodramatic structure.

Very few steer away from this formula and become successful.”

“Obviously, TV is our main issue; but we also want to be where our audience is: we want to be online on the Web with content that supports our channel and also on platforms such as iTunes with content that has to be paid for.”

Russell Wolff ESPN International

Juan Pablo Álvarez GLR Networks

Didi Montiel GolTV

Flavio Dumaine Bonsai3

“The areas to take a closer look towards the future in Latin America are multichannel TV and broadband penetration. Digital penetration is also growing. We are also starting to see HDTV grow in penetration in the marketplace as more people are starting to have HDTV sets”

“I believe that the radio market in the US, especially the Spanish-language radio market, is quite healthy, overcoming this crossroads we face because of firstgeneration Hispanics, who consume the most media in Spanish —more TV and radio that other media such as print, and this is something that the larger North American advertisers are valuing more and more.”

“The success of this channel lies in the fact that it was launched simultaneously in both markets, Anglo and Hispanic. When we set out to negotiate, we set out with the same proposal for all: that they carry us both in the sports and in the Hispanic packages.”

“We started out the year quite fearful of the recession, and looking for business alternatives. I must acknowledge that, despite our initial fear that this was going to be a difficult year and we would have to look for new business in a weak market, we were, instead, swamped with work.”

www.produ.com

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Toma el control y disfruta la mejor programación del canal favorito de los Colombianos.

Las Noticias, Las Novelas, Las Series y El Fútbol Colombiano.

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f o r u m

Hispanic TV ad sales firm amid the storm The Hispanic ad sales market is faring better than its Anglo counterpart during the economic storm, mainly because it is an emerging market

A report by Nielsen IAG confirms the growth of the Hispanic advertising market: “While 2008 national TV advertising grew at a slower rate than prior years, the Spanishlanguage sector increased by 3%, posting gains across every major product category with the exception of automotive offerings”.

Trends

Some of the trends observed by the Ad Sales executives and media buyers PRODU consulted with are that advertisers are favoring the scatter market more than the upfront market; that there is evidently a shifting of dollars from broadcast to cable; and that advertisers are searching more and more for innovation.

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Marcelo Salup, a strategic planning expert, pointed out that the open TV sales market has decreased, but while the general market has decreased between 10 and 15%, the upfront in Spanish has decreased 6%. “I believe that in the year 2010 the scatter market will be very strong, because we’ll have the World Cup, and there’s a good number of occasional advertisers and those who traditionally use other media that suddenly discover how easily they can reach the young men group via TV” Tom Maney, Sales VP with Fox Sports en Español, agrees about the growth of the scatter market. “I think in total, in upfront dollars, it could be down as much as 20%, but I don’t think those dollars are going away, I think

David Lawenda with Univision Communications

Tom Maney with Fox Sports en Español

they are just going to be put in the scatter marketplace or be put aside because people are waiting for ideas.

The upfront is an outdated model of doing business in today’s marketplace.”

Univision Communications Inc., points out that they are pleased so far with the upfront season.

“We are pleased to be trending towards outperforming the Englishlanguage networks. Many of our major marketers have increased their investment and several new brands have come into the space.”

Víctor Parada, senior VP of Ad Sales with Discovery Networks/US Hispanic, considers the Spanish-language TV market as an emergent marketplace.

“The emergent marketplace, by nature, is an area where the growth indexes are higher than those of the total general market because they are growing markets. The industry itself acknowledges that ad sales in this market are not in correspondence with the growth and buying power of the Hispanic population.”

David Lawenda, president of Marketing and Ad Sales with

The market is growing for the ESPN Deportes channel. “Since we are growing as a channel, our income continues to increase in the more than double and even triple digits.

The Hispanic market in general is not having as much trouble as the general market, so the media in this market, especially TV, benefit from that,” points out Lino García, general manager of ESPN Deportes.

“The scatter market will be strong in 2010 for TV, because we’ll have the World Cup, and there’s a good number of occasional advertisers and those who traditionally use other media that suddenly discover how easily they can reach the young men group via TV” MARCELO SALUP, STRATEGIC PLANNER

Marcelo Salup, strategic planner

Dollars shifting to pay-TV

Salup considers that, although there is still not significant migration of ad dollars toward the Hispanic pay-TV market, it is evident that pay-TV has grown very much during the past two years for two reasons: firstly because the universe of Hispanics with cable has increased greatly; and secondly, related to perception, is that pay-TV attracts audiences that are different from the open TV audiences.

Maney observes that broadcast TV is losing share. “Every year, the share of audience decreases, and we see here, dollars shifting from broadcast to cable. The cable share viewing is

Víctor Parada with Discovery Networks US Hispanic Group

Lino García with ESPN Deportes

Bob Turner with Azteca América

growing so it justifies putting more money into cable. The Cost Per Thousand is 25% to -in some cases50% less than TV. There is a greater value in the delivery of a rating point in cable and the households have a higher consumer value. So cable will show double-digit growth and you will see single digit decrease in the broadcast dollars because their share of audience is not growing and their prices are high. Value is so important in this marketplace right now.”

Telecommunications categories.

Bob Turner, president of Spot Sales with Azteca America, considers that the biggest increases have been seen in Financial and Retail.

bit and there is continued growth in categories of Home Improvement,” points out Maney.

Lines of growth

Lawenda points out that the areas that show growing interest are Consumer Packaged Goods, Quick-Service Restaurants and

“From new advertisers we continue seeing growth in categories of Beverages, Consumer Packaged Goods, Male Personal Care, Consumer Electronics and other Secondary Telecommunications Byproducts.

We are seeing continued growth for the Quick Service Restaurant (QSR) category, not only of new ones coming into the market but also growth in budgets from the ones who have been there. Financial Services is coming back a little

Parada indicates that the categories with the greatest growth are Packaged Goods, Wireless and Military. “It’s the growth we’ve seen this year, compared to 2008.

Automotives, in our case, has been a stable category. Although some advertisers have reduced their investments, we have found others in the same category, such as Mazda.”

Other new advertisers have been Blackberry and RadioSchack.

Maribel Ramos-Weiner

www.produ.com

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p r o g r a m m i n g

Latin distributors betting on the Hispanic market Whether for cans or format adaptations, the Hispanic US market appears a lucrative territory promising growth to Latin American distributors

The Hispanic US has become a coveted and attractive market for Latin America content distributors because of a growing demand from Hispanic audiences seeking diverse content that is in Spanish and relevant to their roots.

Programming sales to this territory focus not only on cans, but also on formats and adaptations.

Moreover, the Anglo market is showing interest in Latino products, and distributors such as Frecuencia Latina International (FLI) and Telefe International are currently developing projects to this effect.

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Importance of the Hispanic market

Patricia Jasin, International Sales director with FLI, has seen many doors open within the Hispanic market with the establishment of low power stations and pay–TV channels that demand Latin content. “Although it has been a slow year, we do have many new players in the market that are now beginning to program Latin American cans,” she points out.

Michelle Wasserman, manager of International Programming, Format and Production Sales with Telefe International, says that the potential of the Hispanic market was always a tall and attractive one in all aspects

Patricia Jasin with FLI

for her area of international business.

“We now have a presence in this market, in different areas. Our international pay-TV signal is available on several platforms (Cablevision, Comcast and DirecTV), we have content airing on a number of networks —Latele Novela Network, CV Network, América TeVe channel 41, Mega TV, and also in a number of other, low power stations.”

Additionally, Telefe International has completed adaptations based on proprietary formats and opened a fourth line of business: the provision of production services. “We have worked in the development of several productions for the Hispanic

Michelle Wasserman with Telefe International

market, like telenovela Frijolito, amarte así, produced in our studios for Telemundo.”

“The Hispanic US market represents a great business opportunity due to an important growth spurt during the past two years, which has increased the ad spending allocated to this demographic. There is great potential in the marketing of TVN Chile’s productions.

There is significant growth potential in a market that is just beginning to be exploited,” said Joysette Rivera, Sales manager for Central America, Canada and the Caribbean with Telemundo International, distributor of the TVN Chile catalogue.

“The Hispanic US market represents a great business opportunity due to an important growth spurt during the past two years, which has increased the ad spending allocated to this demographic” JOYSETTE RIVERA, TELEMUNDO INTERNATIONAL

Joysette Rivera with Telemundo International

Product demand

As for the features of the products the Hispanic market is demanding, Wasserman considers that among formats, romantic comedies are favored. As for cans, the telenovela remains as queen of the catalogue.

Rivera points out that the telenovela is the genre that spurs the greatest demand because of its long history in the continent and its pervasiveness in the Latin American culture.

Jasin indicates that the ‘neutral accent’ is one of the keys to the success of the Peruvian can. “The development of the Hispanic US market began many years ago for FLI, thanks to the fact that its product had a better reception that any other —except

FLI is considering Los Barrigas for production in the Hispanic US

Telefe’s format Los exitosos Pells will be adapted by Telemundo

the Mexican— because of the neutral accent.” However, it is not only cans that she sells: an agreement is already underway for an adaptation of Mi problema con las mujeres, with NBC, for the Anglo market. They placed the can of this same product in Galavisión and the can of Esta sociedad in mun2.

Also, they have agreed on a programming package for SUR Perú: a total of 10 novelas (such as Torbellino, Secretos, Demasiada belleza), 28 series (including De pura sangre, Dina Paucar, la lucha por un sueño and Misterio), and a current events show (El especialista). As for their formats, they are considering the production of Los Barrigas and Mi problema con las mujeres for the Hispanic market.

TVN Chile’s Los treinta has aired on CV Network

Wasserman comments that during the past five years the market has become a reality for Telefe because of their solid presence in the US. “Telefe was the first television channel to license a Latin fiction format to a Hollywood company, when Sony purchased our series Los simuladores. Several of our most important shows (Resistiré, Amor mío, Floricienta, Hermanos y detectives, Acompañantes, Simuladores, Amor en custodia) have been adapted and will be adapted by the main US networks, and several tens of our titles have been shown in their original format (more than 50 telenovelas and series, and similar number of documentaries, entertainment shows and movies). She adds that they are working with Telemundo on the

adaptation of one of their most successful shows, Los exitosos Pells, and expect to work soon hand in hand with Univision on several projects.

Rivera said that one of the TVN products with the greatest success in the Hispanic market is Amores de mercado, adapted by Telemundo with the title Amor descarado. In terms of format adaptation, Telemundo has been a great client for TVN, since they have developed several for the small screen, including, besides Amores de mercado, Los Pincheira, Romané, Destinos cruzados and Entre medias.

Rivera added that channels such as CV Network have aired their cans Cómplices and Los treinta.

Maribel Ramos-Weiner

www.produ.com

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Profitability of multicasting still to be determined Sara Erichson from Nielsen

One of the key advantages of digital television is the possibility of multicasting, but Hispanic TV networks are still trying to figure out how to make a profit in this environment Finally, after much tug and pull, digital TV has become a reality in the US. According to the most recent report

by The Nielsen Company, 98% of homes are able to receive digital television signals, a gain of 1.3 million homes since the week of June 12, date of the DTV transition.

“The June 12 transition to digital broadcasting was an important milestone for all of us who work in the television industry. In sum, the digital transition seems not to have

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had a major impact on viewing levels.

People still watch a significant amount of television and we believe the small number of households that remain without digital television will eventually make the switch-over from analogue television,” says Sara Erichson, President, Media Client Services North America at The Nielsen Company.

One of the main, still unanswered questions regarding this issue is how profitable will the multicast model generated in the digital TV environment be. For networks such as V-me, LATV, Estrella TV and Azteca América it has been the ideal opportunity to extend their distribution to the Hispanic US market, but the larger networks such as Telemundo and Univision have yet to reveal their

Starrett Berry from LATV

programming strategies for that extra bandwidth freed by digital TV. When consulted on the profitability of the multicast model, Starrett Berry, VP of Affiliates at LATV, said: “Most of our affiliates now have access to local ad revenue, which was untouchable before having digital TV. Affiliates are generating incremental revenue by tapping into the local Hispanic retail market. They are doing amazingly well, given the current economic climate”.

Berry perceives an additional benefit from multicasting, which is that you definitely reach more homes. “We have seen an increase of up to 30% of homes reached depending on the market. More homes means more ratings and increased network sales”.

Byron Grandy from Azteca América Colorado

On the other hand, Byron Grandy, VP and general manager of Azteca América Colorado and KMGH 7 in Denver, points out that the profitability of multicast is still being researched.

“This is an issue broadcasters around the country are currently researching and testing. You may be able to use multicasting to provide new opportunities to advertisers. This new space could be a place to develop new programs where advertisers are integrated in the program or involved in non traditional ways. The use of multicasting will evolve over time and I believe it will take patience to best figure out how to make money at it.”

Maribel Ramos-Weiner

p a y

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DISH Network gaining strength in Puerto Rico Dave Shull, with DISH Network

DISH Network significantly improved their channel offer in the Caribbean island. New launches included Anglo channels, HD channels and expansion of their DishLATINO package This year, DISH Network, LLC strengthened their presence in the Puerto Rican market with the launch of 24 new HD signals, thus increasing their HD offer to 33 channels. With this addition, their HD programming package, Puerto Rico HD Pack, includes 14 exclusive channels.

In addition to the launch of new HD channels, the satellite operator expanded its DishLATINO package with five more channels: Discovery

Kids, Animal Planet, National Geographic, Utílísima, and an exclusive of DISH Network: América TeVe Miami. DISH Network’s package of local Puerto Rican channels was also enhanced with the addition of La Cadena del Milagro.

“Subscribers to DISH Network in Puerto Rico have access to the best of both worlds: an extensive variety of channels in English and in Spanish, including the largest number of HD channels. With the addition of these channels at no extra cost, we are proud of presenting our subscribers with the best television experience and a value unmatched in the island,” comments

Rubén Mendiola, with DishLATINO

Dave Shull, senior VP of Programming with DISH Network.

Rubén Mendiola, general manager of DishLATINO, explains that they had always felt that Puerto Rico was not being offered all that the market represented. “We have always wanted to take more care of Puerto Rico, this has been a year-long project. Puerto Rico holds the best of two worlds: many consider it Latin America and many others consider it US. My mission was to organize the offer that DISH was providing to that market.”

He pointed out that the changes were made specifically for Puerto Rico, considering the needs in that territory, “which is sometimes a

Enrique de la Campa and Emilio Braun from CV Network with Mayda Nazario from CV 24 and Rubén Mendiola from DishLATINO

luxury with a satellite company that covers all the United States and often you find it difficult to do things for a specific market —especially to the extent that we have.”

“Puerto Rico has become a priority, it has grown incredibly as a territory and is also strategic to us. The numbers have answered. We are very happy with the reception we’ve had in Puerto Rico”.

A couple of months before their grand launch, DishLATINO had already included CV Network’s Puerto Rican channel CV24 in their lineup.

Maribel Ramos-Weiner

www.produ.com

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p e r s o n a l i t y

Joe Uva, with Univision Communications Two and a half years after joining the company, Univision Communications’ CEO talks to PRODU about the main challenges, the vision and the future plans of the largest media group in the Hispanic market

During these two and a half years at Univision, what do you find have been your main achievements?

“I’m extremely proud of what we’ve done since I joined the company two and a half years ago. During this time we’ve been able to restructure the company to work more collaboratively across divisions; we’ve built a strong management team by retaining and attracting top talent; we’ve successfully worked through the Digital TV transition; we have managed the company effectively during the economic crisis; we further enhanced our financial positioning by securing an amendment to our senior secured credit facility to relax our financial covenants and refinancing a portion of our capital structure.

Joe Uva

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We’ve negotiated and secured 140 agreements with cable, satellite and telecom providers and we have built on the existing relationships with organizations that are important to our community at a local and national level, including the Congressional Hispanic Caucus, the Congressional Hispanic Leadership Institute, the National Association of Latino Elected and Appointed Officials and the National Council of La Raza, to name a few.”

What have you experienced as the greatest challenges in your position as leader of Univision?

“I think everyone in this country has been faced by the same challenges in this last year that are tied to the economic crisis facing

the country. Unfortunately, we were not immune. Like most media companies, we continue to look for ways to make our entities more recession-resilient and maintain focus on our company values and goals.

I am very optimistic about the future. Univision is about growth and innovation. We will continue to be the leading Spanishlanguage media company, reaching our audiences on three screens (TV/PC/Mobile) and radio. This is evident in our ratings. We get a daily report card through Nielsen and are seeing growth in our audiences and in our connection with our community.”

“Like most media companies, we continue to look for ways to make our entities more recession-resilient and maintain focus on our company values and goals”

Al diablo con los guapos

Cristian de la Fuente, host of the new reality ¡Viva el sueño!

Have you already defined a particular strategy for the digital channels?

“I can tell you that throughout the 2009-2010 broadcast season, Univision is rolling out HD in advance of the World Cup across networks, stations, platforms and genres, including novelas, sports, entertainment specials, VOD and 64 owned and operated stations.”

Univision from the widespread downward pressure on the advertising market, we recently took some prudent steps to solidify the Company’s financial position. Having secured an amendment to our senior secured credit facility to relax our financial covenant and refinanced a portion of our capital structure, we believe we have an extremely strong financial profile, an enhanced ability to weather the current environment, and are well-positioned to thrive in a market recovery.”

What is your view of Univision’s financial position?

“In the first half of 2009 we built a strong foundation from which to grow for the remainder of the year, including completing 140 multi-year retransmission agreements and generating revenues in excess of our expectations. In addition, to insulate

En nombre del amor

Is it true that the network is beginning to experience a reactivation of the ad market? Which are the signs that show this?

“We have not seen any continued deterioration in the scatter markets

and there appears to be stabilization.

We certainly don’t expect the markets to be restored in the foreseeable future. Based on literally a handful of deals that we’ve completed so far, it appears that we’re out-pacing the results that have been reported for the Englishlanguage broadcasting and cable markets. We expect that by midSeptember, when we finish up the broadcast year business, we’ll have better insight as to how we compare.

At this time we don’t have enough to really indicate a trend.”

2010 is a World Cup year for soccer, how is your network preparing for this event that traditionally brings in important audience numbers and ad income?

Don Francisco, host of the popular Sábado gigante

“We are going to be delivering unprecedented World Cup coverage of the 64 matches and will be making these available in HD across Univision and TeleFutura and other platforms, including Univision Interactive Media and VOD. For 31 days, Univision will be transformed into the U.S. ‘World Cup Destination,’ allowing U.S. audiences to have first of its kind access to the biggest sporting event in the world.

And our plans are already yielding results: we’ve sold more World Cup advertising inventory at this time than we had in previous World Cups.”

Maribel Ramos-Weiner

www.produ.com

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MySpace: from Social Media to Entertainment Portal Once the leader of social networking, MySpace is now reinventing itself as an entertainment portal. Pink slips and new hires are being balanced in order to keep the business afloat

After conquering millions of fans with a page that allowed them to feel the creators of a website that was increasingly more customizable, the numbers at MySpace began to plunge with Facebook’s incursion and their offer of Social Networking 2.0. According to Nielsen data, while between Apr2008-Apr2009 users began to decrease by 30% the time they spent online on MySpace, the time users spent on Facebook skyrocketed —by 700%! In order to overcome the reduced advertising, MySpace has decided to reinvent itself as a gaming and entertainment portal.

“MySpace is and will be more in the future a gaming platform, a space for people to meet and play games. If

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you look at the big activities online, games right now is number three. So it’s clearly going to be a major focus,” stated recently Jonathan Miller, chief digital officer of MySpace’s parent company News Corp.

This announcement was followed by a number of other important decisions, such as the purchase (for an estimated $20M) of Web music service iLike, which became popular precisely on Facebook, and the hiring of MediaLink and its president Wenda Harris Millard, who will provide ad sales consulting services for one year.

Twins Ali and Hadi Partovi, and Nat Brown, founders of iLink, were also hired for this project.

Wenda Harris Millard from Media Link

With the announcement of the new hires at the executive level, the social network also announced the layoff of 30% of its staff by the end of the first semester. Jeff Berman, president of Ad Sales and Marketing at MySpace, had already left the company a year ago.

The changes resonated in the Hispanic market, with the closing of the operations of MySpace Latino. The division was created one year before in order to cater to this market and, according to sources close to the company, it maintained a good level of profitability, albeit modest when compared to MySpace’s overall profit.

Marla Skiko from SMG Multicultural

“We would hope that MySpace, as well as other major web properties, would continue to look for ways to attract the growing Hispanic online audience, even if that is on their mainline site vs. a dedicated in-language property. We also encourage them to try to revisit the decision to have dedicated content once their business allows for that.

Their recognition of the importance of the Hispanic online audience was a smart one and one we hate to see disappear forever,” commented Marla Skiko, SVP and director of Digital Innovation at SMG Multicultural, about the shutdown of MySpace Latino.

Patricia Blanco

Online Measurements Continue to Improve Nielsen’s announcement of an enhanced online panel report and comScore’s decision to optimize its digital measurement systems in Latin America are good signs for media buyers seeking to get a place online for a growing number of clients

The pursuit of perfect online measurements hasn’t stopped. As this media boasts having the most measurability, large media measurement companies have kept their efforts focused on defeating their own systems, integrating them with other media and becoming able to track down all online audiences, wherever they may be.

Nielsen, well known in the market for its sophisticated technology for measuring TV ratings, announced the expansion of its website measurement panel. In the past, the panel monitored online activity in 3,000 websites; this has now been extended to 30,000 sites, allowing for tracking visits to 10

times more sites, given the fragmentation in web navigation.

“There is incredible demand for more accurate, reliable and high-quality Web audience measurement.

Nielsen’s new panel is a huge leap forward in measurement to address that need. Nielsen continues to strive to provide clients and the industry with the best, most insightful research possible. One of the most exciting things about this new methodology is that by including Nielsen’s TV/Internet convergence panel for online audience reporting, we are laying the foundation for better future crossplatform measurement,” explains John Burbank, CEO of Nielsen’s online division.

John Burbank of Nielsen

With this expansion, Nielsen worked for a better representation of Hispanics, adolescents and cell-phone only households in their sampling.

On the other hand, comScore, a measurement company that has become a global leader measuring the digital world, put its eyes in Latin America, not only with the establishment of a regional division headed

by Alex Banks during the past year, but also responding to a key demand from clients: to be able to measure all Internet users —those who connect from their homes and offices, and also the great majority that connects from cyber cafés. “comScore Media Metrix 360 represents a significant innovation

Alex Banks of comScore

in digital audience measurement and we are delighted to be able to offer this service in Mexico. We know that a substantial proportion of Internet usage in Mexico occurs in Internet cafés, and comScore’s new panelcentric hybrid approach to online measurement will enable us to account for 100 percent of a website’s audience. This service has been in development for more than a year in the U.S. and we will be working with our clients in Mexico over the coming months to deliver the Mexican market the most robust and comprehensive solution to digital audience measurement,” says Banks, managing director of comScore Latin America.

Patricia Blanco

www.produ.com

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s p o t l i g h t

Kim Reed-Fragione

Fernanda Merodio

Bruce Boren, Pepe Bastón, Don Browne and Marcos Santana

Olympusat rounds up Hispanic offer with ¡Sorpresa!

Hispanic children’s TV channel ¡Sorpresa! has been acquired by Olympusat, Inc., and is now one of 11 channels in Olympusat’s Hispanic Pack of Spanish-language services.

The Hispanic Pack includes Cine Mexicano, Gran Cine, Ultra Latino, Latele Novela, TV Colombia, La Familia Cosmovisión, TV Chile, Cable Noticias, Momentum TV, and TBN Enlace.

Kim Reed-Fragione, VP of Network Development at Olympusat, says: “We felt that ¡Sorpresa! truly rounds up our offering. Our ultimate goal as a company is really to deliver the best, the most relevant, Spanish language programming and to properly service our consumers as well as our affiliates.”

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Fernanda Merodio, Director of Affiliate Sales & Marketing at Olympusat, added: “The goal obviously is to grow the distribution of the network. Currently the channel is distributed over 1 million homes. We have a very sound affiliate team with Ivette Méndez, Colleen Glynn and myself in order to achieve this goal”.

Reed also indicated that in order to simplify distribution they are migrating ¡Sorpresa! to the Olympusat transponder from which all the Hispanic Pack TV signals are distributed together.

Levántate

Telemundo signal for Mexico and Latin America is launched As a result of the agreement between Televisa Networks and Telemundo Communications Group, distribution of the Telemundo signal to Mexico and Latin America was launched mid-year.

Telemundo president Don Browne commented: “This announcement is an affirmation of the success and growth of our original content strategy.”

The new channel will transmit original productions, including telenovelas, newscasts and variety shows, such as Caso cerrado, Al rojo vivo con María Celeste, Levántate, 12 corazones, El cuerpo del deseo, Los plateados and Premios Billboard de la Música Latina.

José Bastón, president of Television and Content with Televisa, said that the alliance with Telemundo will positively impact the growth of both companies, while Marcos Santana, head of Telemundo International, added that this launch expands the reach of the company throughout the region to an important sector such as pay TV. Bruce Boren, VP of Televisa Networks, said: “We are proud to add Telemundo to our channel offer, which underscores our commitment to maintain our leadership in the pay-TV industry”.

Carlos Martínez

En armonía with Teodelina de Carabassa

Utilísima intensifies efforts in Hispanic US Hispanic signal Utilísima Internacional, part of the Fox family of channels, has increased efforts in the Hispanic US market. Carlos Martínez, senior VP and deputy general director at Fox Latin American Channel, said the signal would jump from 300K homes to 2.3M subscribers as a result of important agreements signed with Dish and Comcast.

The new Utilísima has greater international appeal. “The difference is that the new Utilísima has a balanced programming. It is 50% or 60% international programming, with Venezuelan, Mexican, Puerto Rican talent. That is the difference in

Joe Ramos

WAPA Universal Sports is born

programming, and that is the channel we’ve launched on Dish and re-launched on the systems that carried the previous Utilísima in the US”.

Making use of the bandwith freed by digital TV, Puerto Rico’s WAPA-TV launched their WAPA 2 channel, WAPA Universal Sports, for the transmission of sports matches 24/7.

He indicated that their project for a later time is to launch a channel exclusively for US Hispanics. “That would be our plan in three to five years. We are now focusing 100% of our power on Utilísima. We believe that we find a very interesting niche there for the Hispanic women who do not want to lose their roots and customs, and need a communication channel that talks to what is Hispanic in them”.

“The idea is to use the programming provided by the Universal Sports Channel (owned by InterMediaPartners in partnership with NBC) as its main content and, when local games are scheduled in Puerto Rico —basketball, professional baseball, softball, volleyball, AA baseball and box— we

would replace part of the programming from the Universal Sports Channel with the local productions here in Puerto Rico. This would also allow us to transmit those games via WAPA América,” explains Joe Ramos, president of WAPA-TV. As a bonus, the channel will include weather reports by WAPA-TV meteorologists every half hour, which would be expanded and updated more often during emergencies.

www.produ.com

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Telemundo progressing firmly toward HD The Hispanic network has set its stakes in HD and expects to have a full HD broadcasting control room at its headquarters in Hialeah, Florida by 2010

Three years ago the Telemundo Communications Group began its transformation to HD production and transmission, in an effort to continue ahead of the competition and keep its technological edge. Their first HD production was super production Zorro, la espada y la rosa with Sony Pictures Television.

“We began the process for HD in 2006-2007, when we shot Zorro.

Zorro was the first novela that we shot in full HD. It was a coproduction with Sony and we made a significant capital investment

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Derek Bond: HD is the future

purchasing the new equipment that was used to develop this HD project, and we also invested in training our people on how to shoot in HD —and that includes make-up, wardrobe, scenery, understanding that we have to be very good because HD has a lot of detail and with detail you can see more flaws,” says Derek Bond, Executive Vice President of Studios & Broadcast Operations, Telemundo. He explains that although the telenovela was not broadcast in HD it was the ideal product to show their HD capabilities.

Zorro, la espada y la rosa was the network’s first HD project

In April this year, with the HD transmission of the Billboard Latin Music Awards, Telemundo became the first Hispanic network to offer high definition programming. Later, the network transmitted in HD parts of telenovela Doña Bárbara, and telenovelas Más sabe el diablo and Los Victorinos in full HD. Their plan is to be broadcasting in HD all the network’s prime time lineup in the next 12 to 24 months. “Our intention, depending on the economy, is to have the 7-11 primetime novelas in full HD, all year long.”

Los Victorinos is one of the prime time novelas shown in HD

The channel’s future plans include HD transmission of shows such as 12 corazones, Al rojo vivo, Caso cerrado, newscasts and live sports.

“All the shows are being scrutinized.

At this point, HD is the future.

The general market is very much in that direction and we want to be very competitive not only in our market, but in the overall market as well.”

Maribel Ramos-Weiner

o p i n i o n

The State of Hispanic Television: It may be growing, but where is it going?

By J o e S c h ram m , M an ag i n g Par t n e r, S ch ra m m Ma rketin g G rou p, In c.

Ne w Yo r k , N Y

As an active participant in the Hispanic television business, I have observed that the industry has had significant growth in the past six years. Yet, the industry is at a critical crossroads as well. The direction the industry takes next will have a significant impact on its future.

The fourth factor is technology.

The digital transition has allowed programmers to access bandwidth through “multicasting”, while consumers are increasing their use of high definition, on demand, and alternatives like mobile TV, broadband TV / IPTV.

The growth is best measured by revenues from subscriber fees, rights or syndication fees, transactional fees for pay-per-view or subscription on demand, and ad spend.

Technology offers more ways to reach and attract Hispanic viewing audiences -an objective that is shared by networks, pay TV companies and advertisers. Yet, despite this shared objective, the industry has conflicting priorities.

As a result, efforts to reach the maximum Hispanic TV households are often not successful. These conflicting priorities are why the Hispanic television industry is at a crossroads.

The growth of Hispanic TV is driven by four factors. The first three are population growth, buying power and an increase in programming networks for Hispanics.

Here is a short list of challenges caused by conflicting priorities: - When networks get added distribution through alternate technologies, they face media planners who question if it is better to reach a targeted audience at every touch point (the promise of “TV everywhere”) or is it more efficient to use established mass marketing strategies?

- Independent digital networks need to maintain significant “start up” financing to sustain them through the long pay TV distribution process.

- Hispanic pay TV packages are promoted to attract new subscribers and less frequently used as an “up-sell” to current customers. The

result is that the packages don’t truly reach the greatest potential of TV households.

- Pay TV providers place tiers in channel neighborhoods that advertisers say are “too remote.”

These challenges are preventing the industry from reaching the maximum number of Hispanic TV households.

This is having a noticeable effect on the Hispanic TV financial landscape.

We have what we need as an industry… growth, technological advances, historical perspective (from general market TV) and a common objective. It is time to make fresh adjustments to the direction we are going for the sake of the entire Hispanic television business.

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SOMOS TV is a company dedicated to exploit, develop and promote the growth of the Pay TV Hispanic market in the United States and Puerto Rico by: 1. Launching carefully targeted signals 2. Exploitation of all forms of transactional TV in all distribution platforms, in tune with today’s accelerated market evolution 3. Technical and creative excellence 4. Developing strong client relationships with main industry companies based on: . Professionalism . Our recognized expertise in the Hispanic Market . Partnerships in marketing and promotional support P +1-786-220-0280 www.somostv.net

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www.produ.com

Luis Villanueva

Jose Antonio Espinal

Alejandro Parisca

Giselle Trainor

Luis Villanueva is a Venezuelan-born executive who has developed a successful professional career in the fields of finance, banking and communications media. An economist with an MBA, he currently holds the positions of president and CEO of SOMOSTV, a company dedicated to the development of the pay-TV market in all windows and platforms within the Hispanic market. Currently, the company has two pay television signals in the US Hispanic market: VeneMovies, a 24-hour commercial-free movie channel, and Semillitas, targeting infants and preschool children.

Jose Antonio Espinal, a Venezuelan citizen, is COO at SOMOSTV. Espinal was previously Vice President of Entertainment with Venevision International. In this position, he was in charge of Business Development, managing both operational and strategic issues. He also led the Film Division, and projects in all business units related to the expansion of the company.

Espinal was with the Cisneros Group for 11 years, and held positions at the corporate level as well —as Market Information Manager, overseeing the corporation’s businesses in the food and beverages, beauty and health, computers, telecommunications, retailing and mass media markets.

Alejandro Parisca is the Vice President/General Manager of SOMOSTV, a position he has held for the past three years.

He joined Venevision International in 2005 to help design, coordinate and launch VeneMovies. Today he oversees the day-to day operations of the SOMOSTV networks VeneMovies and Semillitas. From his native Venezuela, Parisca brought in his over 30 years of experience in television production, programming and international distribution, as well as station management skills, both in free TV and cable.

Giselle Trainor is a professional with over 20 years experience in the entertainment industry.

She is in charge of all the marketing, promotion and advertising activities for SOMOSTV’s signals VeneMovies and Semillitas, in coordination with the operating companies.

She is the contact person for the most important film festivals in the Hispanic market and is also in charge of developing, maintaining and managing all SOMOSTV’s Internet properties.

President and CEO

Chief O perating O fficer

VP and G eneral M anager

M arketing D irector

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Patricia Jo Boyers from BoyCom with Matt Polka, president of the American Cable Association (ACA)

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Bruce Levinson, Carly Greenberg and Kevin J. Blute from NCB Universal

Fred Strok, EWTN’s marketing director/US

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César Español from TBN Enlace USA with Bob Higley from TBN Networks

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Andrew Stein from The Orphaned Starfish Foundation, singer Johnny Ventura and Eurídice Ventura from DirecTV

Didi Montiel and Sherri Bastura with GolTV

Art Cunningham, director of Distribution with A&E Television Networks (AETN)

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Orlando “El Duque” Hernández, Luis Tiant, ESPN Deportes’ Lino García and Tanny Pérez

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Fernanda Merodio and Colleen Glynn from Olympusat

John Mathews, Torrae Lawrence and Joel Schwartz from Turner

Adriana Fernández, Affiliate Sales manager/North America with Fox Latin American Channels

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Luis Tiant and wife María during the screening

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John de Armas from DirecTV’s WorldDirect with Johnny Ventura

Tom Walsh and Mike Van Bergen, from Navic Networks

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Luis Tiant and ESPN Deportes’ Lino García

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José Cancela from Hispanic USA

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John de Armas from DirecTV’s WorldDirect

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