This company's singular vision focuses on Hispanic audiences. Univision Communications is the leading Spanish-language broadcaster in the US with a portfolio of television and radio operations. It runs the top-rated Univision network, carried by more than 1,400 broadcast and cable affiliates, as well as sister networks TeleFutura and Galavisión. The company also owns and operates about 60 local broadcast TV stations. Its Univision Radio division boasts about 70 stations. In addition to traditional broadcasting, the company distributes content online. Founded in 1961 as Spanish International Network, Univision is controlled by a group of private investment firms led by TPG Capital and Thomas H. Lee Partners.
In the larger picture of US television broadcasting, Univision's flagship network regularly tallies enough viewers to rank right behind the four major networks. That fact not only speaks to Univision's success in airing successful programming but also illustrates the size of the Spanish-speaking audience in America.
Sales and Marketing
With its growing size and affluence, this demographic is also becoming increasingly valuable to marketers, which in turn has made advertising on Univision an important part of mass media ad campaigns. Univision depends on commercial advertising for the lion's share of its sales. It also generates revenue from carriage fees paid by cable TV system operators.
Growth of Hispanic audiences has also brought in more competition for Univision's networks. The company's chief rival in this arena has been Telemundo, a Spanish-language network owned by NBCUniversal (NBCU), but the market has seen an uptick in new entrants such as Azteca America (owned by Mexico's TV Azteca), Estrella TV (Liberman Broadcasting), and MegaTV (Spanish Broadcasting System). In addition to those competitors offering a dedicated Spanish-language broadcast, many other TV channels now offer a Spanish-language version.
Looking to boost viewership, Univision is constantly focused on developing or acquiring new programming. The company has its own production studio to create its own shows in-house. It also has production and distribution relationships with such companies as Caracol, Endemol, and Venevisión. Univision has been expanding its online content operations as more and more of its audience turns to the Internet for news and entertainment. It has also added other new video features to its Univision.com website.
In 2013 Univision launched the Uforia music service, the company’s new audio strategy aligning music efforts under one umbrella. Also in 2013 ABC and Univision entered into joint venture news and lifestyle network called Fusion. Partnering with ABC will extend Univision’s unequaled coverage of Hispanic issues and lifestyle to English-dominant audiences.
The company got a big boost in 2010 when Mexico's Grupo Televisa invested $1.2 billion in Univision. The deal, which gave Televisa a 5% stake, signaled the end of disagreements between the two Spanish-language media giants that centered on programming distribution rights and royalty payments. With the disputes resolved, Univision and Televisa extended their distribution arrangement until 2020. Televisa also handed over 50% of its TuTv joint venture with Univision to the US broadcaster.
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