February 27, 2008
Political Punditry and the "Great and Powerful Oz"
Lee Gomes, writing in the Wall Street Journal, identifies yet another reason why the mainstream media gets red-faced and insecure when the subject of bloggers and online news comes up:
Like most writers online, Rick Klein, who covers politics on the ABC News Web site, invites reader comment. The posts he gets tend toward predictable red vs. blue harangues. But one commenter, "Henry," stood out for his unusually insightful analyses of campaign strategies, exit polls and other election esoterica.
Curious about Henry's identity, Mr. Klein wrote him and asked: Are you a midlevel staffer at some big presidential campaign? Or perhaps a K Street lobbyist, whose livelihood will be affected by November?
Henry turned out to be a high-school teacher in California, whose only connection to the Beltway was a broadband one. . . .
When knowledge gets democratized and distributed ubiquitously, it arouses the wrath of the "great and powerful" punditry:
February 12, 2008
Hispanic Media Growth Forecasts Positive
That's the view expressed in a new report from SNL Kagan on the Hispanic TV and radio industry:
Posted by John at 3:25 AM | Comments (0) | TrackBackThe four major U.S. Hispanic broadcast networks — Telemundo, Univision, Telefutura, and Azteca America — had estimated combined revenues of $1.3 billion for 2007, with that figure expected to top $1.6 billion in 2011. Combined cash flow could generate greater growth, jumping to $627 million in 2011 from $460 million in 2006.
Hispanic TV stations can expect slower revenue growth at about 5.4% annually through 2011. SNL Kagan expects Hispanic radio revenue to increase 6% in 2008 to $1.21 billion, outpacing the overall industry's expected growth of 2% to 3%. Over the next four years, radio station revenues are expected to grow at a 4.9% CAGR.
January 12, 2008
Googlevision
Matsushita is teaming with Google:
Matsushita and Google have jointly developed equipment to show content from YouTube, an internet video clip website, clearly on large TV screens. The new Viera plasma TVs, which will debut in the spring in the US, will also include access to Picasa Web Albums, a free online photo-sharing service from Google.
Toshihiro Sakamoto, president of Panasonic AVC Networks, said: "This is the first time mainstream consumers will be able to easily enjoy YouTube videos from the living room with the enhanced quality of a fully integrated widescreen TV experience." [Source: Financial Times]
Yoshi Yamada, head of Panasonic's North American operations, went on to tell the Financial Times that his commodity-oriented products need Google's content to differentiate them in the market.
Here's a company barely ten years old giving a seventy-something year old product a new reason to live.
Posted by John at 7:18 AM | Comments (0) | TrackBackOctober 4, 2007
Hispanic Ad Dollars Fall So Far in 2007
While falling less than revenue for English-media outlets, ad dollars devoted to Spanish language media fell in the first half of 2007, with some advertisers cutting budgets by double digit rates.
Of the top 25 Hispanic marketers, 18 cut their spending in the first half of 2007 compared to the comparable period in 2006. Half of those companies made cuts of at least double digits, while AT&T, Verizon Communications, Hyundai, Home Depot and SABMiller all cut their Hispanic ad spending more than 20%.
July 31, 2007
Thanks to Hispanic Viewers, Soccer Kicks Hockey
According to ESPNsoccernet, nearly twice as many U.S. viewers tuned in for the June 24 Spanish language broadcast of the Gold Cup finals between the U.S. and Mexico as those who watched this year's deciding Stanley Cup match. [Thanks to Hispanic Tips for the pointer.]
Posted by John at 4:46 AM | Comments (0) | TrackBackJune 27, 2007
Leave These Two Media Mice Alone
Chicago Tribune columnist Steve Chapman pegs it perfectly in explaining why FCC Chairman Kevin Martin and many members of Congress, in objecting to the proposed merger of XM Satellite Radio--Sirius Satellite Radio, are completely wrong:
The key government error is defining the market as a narrow sector isolated from other sectors that provide reasonable substitutes. That same mistake explains the FCC chairman's aversion to the satellite radio deal, as well as the letter from 72 members of the House of Representatives claiming it would have "devastating" consequences for listeners.
As it happens, the alternative to one satellite radio company may not be two companies but none. The existing ones have accumulated some $7 billion in losses between them. The merger may allow them to reduce costs, so they can eke out a profit and stay in business. Raising prices would not be easy, because consumers have plenty of affordable options. Music fans can listen to terrestrial radio, pop in a CD, find an Internet feed, turn on an iPod, flip to the cable TV music station or check out unknown talents on YouTube.
Web radio may not get as much attention as Howard Stern, but it has four times as big an audience as XM and Sirius combined. In his alarm about the proposed merger, Martin has mistaken a mouse for a moose.
Indeed, the competition is all the seemingly endless media alternatives we as consumers have. Given the losses this two companies keep accumulating operating separately, the denial of this merger could mean the end of satellite radio.
Posted by John at 5:18 AM | Comments (0) | TrackBackJune 25, 2007
More Out with the Old, In with the New in Media
Another signpost in the changing media world: Hitwise reports that YouTube is poised to overtake the BBC's site in share of U.K. visits.
Posted by John at 5:20 AM | Comments (0) | TrackBackJune 24, 2007
Our Changing Media World
With recent news items like these, why are some members of Congress worried about a XM Satellite Radio--Sirius Satellite Radio merger?
--iTunes is now the country's third largest music retailer, surpassed by only Wal-Mart and Best Buy. [Source: InformationWeek]
--For the first time ever, game maker Nintendo has surpassed Sony in market value. [Source: Reuters]. Both companies, by the way, individually are valued more than the top ten publicly-traded U.S. newspaper companies combined.
The real competition is the fight media companies of all genres have to get consumer attention for any extended period of time.
Posted by John at 11:03 PM | Comments (0) | TrackBackJune 23, 2007
Hispanic Radio Continues to Prosper
Arbitron has just released its 2007 version of "Hispanic Radio Today" (pdf), and it reveals continued growth in Spanish-language radio against the backdrop of a lackluster industry environment overall.
The number of stations with Hispanic programming increased 4% in 2006, rising to 730, a new record. This figure is 37% greater than 1998's tally of 533 stations.
Time spent listening has generally risen among both men and women, and away from home listening is increasing as well. Specific details can be found in the report.
Posted by John at 3:25 AM | Comments (0) | TrackBackJune 19, 2007
Immigration Reform and Hispanic Media
Julio Rumbaut on how immigration reform will help Hispanic media:
. . . while a sizable number of Hispanic individuals may be in legal limbo for some time, they will certainly be protected under the law and will logically and naturally aspire and achieve better and more economically rewarding employment, as well as enter into entrepreneurial undertakings. In particular, the legalization of many young people who have been precluded from attending colleges and universities because of residency requirements will significantly enhance the human capital of the Hispanic population, their access to better-paying jobs, their future earnings, and the tax base of their communities.
Media serving the Hispanic market's rapidly expanding population will be extremely well positioned to capitalize on an expansion of this consumer base, which will yield higher disposable income and more permanent aspiration factors due to more open and more rapid legitimization of legal status- and the trust and acceptance that comes with it.
This is especially the case when one of the major challenges faced by Hispanic media is the geometric upside of convincing new and present advertisers to spend more dollars and at higher cost per points against the market. . . .
Rumbaut goes on to point out that better audience measurement should occur as well, which will almost certainly result in a larger audience than currently being reported.
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June 15, 2007
Hispanic Media Loyalties: Keeping the Radio and Loving Cyberspace
In a survey focused on radio usage among Hispanics, Edison Research found that 24% of Hispanics view radio as "most essential" relative to television, the Internet, and newspapers. Only 17% of the general market places such importance on radio.
For those still laboring under the misconception that the Hispanic demographic is not wired, 29% of Hispanics surveyed view the Internet as "most essential", only slightly less than 33% in the general population. Further, 41% of Hispanics surveyed see the Internet as the "most cool and exciting" medium.
The complete Edison report can be found here (pdf).
Posted by John at 7:40 AM | Comments (0) | TrackBackMay 26, 2007
Hispanics are Radio's Most Loyal Consumers
Posted by John at 6:21 PM | Comments (0) | TrackBackDemonstrating that Hispanics count on radio more than other groups, the study found that 24% of Hispanic polled rate radio as the most essential medium to their lives, versus 17% of total respondents. Driving home the importance of this statistic is how close Hispanics track with the overall market when it comes to other media; 29% of Hispanics cite the Internet as their most vital medium, compared to 33% of total respondents, while the 35% of total respondents who count most on television is nearly in lock step with the 36% of Hispanics who rely mostly on TV.
Driving home the same point from a different angle, the study found that only 14% of Hispanics said radio was the least vital media for them, versus 18% of total respondents. . . .
May 1, 2007
Three of Chicago's Top Ten Radio Stations are Hispanic . . .
. . . "in an otherwise unremarkable winter radio ratings report", says the Chicago Tribune. [Thanks to Hispanic Trending for the pointer.]
Posted by John at 7:55 PM | Comments (0) | TrackBackMarch 30, 2007
It's What We Call the "News"
The latest JibJab video creation perfectly captures, in a very funny way, my disenchantment with television news, and most likely yours as well:
Posted by John at 8:05 PM | Comments (0) | TrackBack
March 24, 2007
Changes in Hispanic Television Lie in Culture, Not Just Language
Broadcasting & Cable sees the future of Hispanic television as being more about culture than language, as an increasing number of U.S. Hispanics are born in this country and are bilingual:
. . . as marketers and programmers better understand the complex new market and the way Hispanics use media, they will create new ways to reach the audience. “Rather than our industry focusing on Latinos who are Spanish-dominant and figuring that, once they start speaking English, they're no longer Latino, we've redefined what it means to be Latino in terms of culture as opposed to language,” says Carl Kravetz, chairman of the Association of Hispanic Advertising Agencies (AHAA) and chief strategic officer at ad agency Cruz/Kravetz: IDEAS.
Today, 60% of Hispanic population growth is coming from people born in the United States, says Sonya Suarez-Hammond, VP of multicultural marketing insights for marketing consultancy Yankelovich. It is the exact opposite of the growth trend of only a few years ago.
“The Hispanic population is acculturating to a great degree, but they are very much holding onto their heritage,” she says. “What our data are indicating is that the Hispanic population isn't necessarily assimilating, and we don't believe they will ever assimilate the way Europeans of decades ago did. Instead, they are acculturating where they have the best of both worlds and adapting to both cultures.”
Boston-based consulting firm Global Insight reports that this population shift is affecting the language used by Hispanics. The Hispanic population last year surpassed 44.2 million, according to Global. Of this group, just over 44% are foreign-born. That figure will dip to 37% over the next two decades. And, while nearly 77% speak Spanish at home, only 24% speak Spanish exclusively, a figure projected to steadily decline—and one that Spanish-language Univision must address.
The language shift has a direct affect on the media that Hispanics use. Research company Encuesta of Miami last year found that 23% of Latinos prefer to watch TV in English, with an equal percentage preferring Spanish and 47% watching equal amounts of English- and Spanish-language TV. . . .
. . . as larger numbers of the Hispanic population learn English, their viewing options will grow. Could Spanish-language TV go away altogether?
“We're seeing an increased number of options in Spanish, and we're seeing the birth of what is really still in its infancy: English-language, culturally Latino broadcast media,” says AHAA's Kravetz. “It's more complex, but it's a natural evolution of Hispanics' reaching parity.”
It’s too simple-minded to point out that such rapid evolution in the Hispanic demographic will put pressure on Univision. If addressing and responding to changing cultural subtleties will be the key to success, however, the real pressure won’t be on Univision, in my view. I suspect Univision and other networks which are Spanish-only today will have the personnel and sensitivity to navigate such change.
The real pressure is more likely to fall on the mainstream broadcast and cable networks. How will CNN (particularly with Lou Dobbs so prominently in the lineup) or Fox News, for example, hope to successfully address these changes? On a local front, how will local news operations in cities with rapidly growing Hispanic audiences be able to respond? Many of them are scared of going “so far” as to have a news anchor or a reporter speaking English with an accent.
ESPN, on the other hand, may be one mainstream network successfully navigating the changes in their audience. ESPN Deportes is part of their lineup of networks, of course, but the sports network complex is now engaging is a little cross-fertilization. On their SportsCenter news and highlights show, ESPN now has cut-in updates from ESPN Deportes which are heavy on sports like soccer which are more popular with Hispanics.
Making such changes will become increasingly important for mainstream networks, and may be the difference, in a saturated market, in preserving or growing audience share.
Posted by John at 9:43 AM | Comments (0) | TrackBackJanuary 9, 2007
Spanish Language Ad Spending Continues to Outperform
According to TNS Media Intelligence, Spanish language media spending is slated to rise 5.4% in 2007, twice as fast as overall ad expenditure growth of 2.6%.
Posted by John at 5:04 AM | Comments (0) | TrackBackDecember 20, 2006
For the Remainder of the Decade, Spanish Language TV and Radio Will Outperform
Marketing y Medios reports on a forthcoming report from media industry research firm Kagan Research, which finds that advertising revenue will flow into Spanish-language stations at a faster rate than general-market stations not just next year, but throughout the remainder of the decade:
Posted by John at 9:02 AM | Comments (0) | TrackBack. . . Kagan is forecasting ad revenue on TV stations targeting Latinos will grow 6.5 percent on a compounded annual basis through 2010. Revenue is expected to increase 5 percent in 2007, 8 percent in 2008, 4 percent in 2009 and 9 percent in 2010, when expenditures will surpass $1.9 billion. . . .
Radio ad revenue is projected to grow an average 5.3 each year through 2010. Ad spending on Spanish-language stations is expected to grow 6 percent next year, far outpacing the forecasted 2 percent to 3 percent for the overall radio industry, and then 5 percent each year through the end of the decade.
Meanwhile, other analysts have recently speculated that the Spanish-language ad market will cool down in coming years as second- and third-generation Hispanics adopt English as their primary language. [Kagan senior analyst Deana] Myers factored this trend into her projections but also notes that a continuing influx of immigrants, coupled with bilingualism, ensures increased ad spending.
"On one hand, there is a movement toward English," she says. "But there is still a lot of growth in first-generation Hispanics. And even though there are second- and third-generation Hispanics speaking English in their everyday lives, a lot of times they speak Spanish at home and watch Spanish-language TV." . . .
October 6, 2006
Internet Advertising Driven by the Small, Not the Large
Terry Heaton, in his excellent PoMo Blog, points to this MediaPost report on the growing share of worldwide advertising which the Internet is assuming. The report points out that Internet advertising has passed outdoor advertising as the fifth largest ad medium and is closing in on radio, currently in fourth place.
According the highlighted ZenithOptimedia study, the Internet's share of global advertising was less than 5 percent last year. By 2011, the Internet's ad share should reach double digits, according to the study.
Terry points to the real "story in the story": this growth is being driven by small companies, not large ones:
The agency [ZenithOptimedia] says much of the growth is coming from an acceleration in demand from smaller advertisers who are "embracing the affordability and targeting capabilities" of online advertising.
"Advertisers in the top ten categories have been cautious about moving into Internet advertising," ZenithOptimedia writes, noting that between 2001 and 2005 the proportion of their budgets allocated to the Internet increased from 2.2 percent to 3.2 percent. Over the same period the Internet's share of total ad expenditure rose from 2.5 percent to 4.7 percent.
"This of course means that advertisers from smaller categories have been spending more than average on internet advertising, which is relatively cheap and can be targeted very effectively," the agency notes. "This makes it suitable for smaller advertisers, for some of which mass-media campaigns would be too expensive and have too much wastage. The Internet therefore encourages these advertisers to spend more than they would otherwise have done, and is not just cannibalizing ad expenditure that would have gone elsewhere."
As I mentioned in this post on the virtues of small in business: "Small means being able to experiment. Big means being afraid to invest."
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October 2, 2006
Losing a Grip in Hollywood
This Forbes article on YouTube offers on the video entertainment site, which draws 34 million unique users a month and where its users watch over 70 million videos a day.
Just a few minutes later I ran across this headline: "Hollywood tries to get grip on YouTube".
Posted by John at 5:52 AM | Comments (0) | TrackBackOctober 1, 2006
Broadcast News Media in Perspective
In an editorial on the loss of standards in media, Peggy Noonan reminds us of the scope of broadcast news: in a nation of 300 million people, the prime time audience for Fox News is less than 2 million.
Posted by John at 4:26 AM | Comments (2) | TrackBackJuly 29, 2006
Univision's Sale: More Great Timing from Jerry Perenchio
As this profile indicates, Univision Chairman Jerry Perenchio's business career has been marked by impeccable timing--knowing when to buy and when to sell:
The year was 1985, and Andrew Jerrold Perenchio was eyeing the kind of deal that eventually would help the one-time Hollywood agent, boxing promoter and entrepreneur become a billionaire twice over.
Perenchio bet that he could buy the Loews Theater chain for $160 million and flip it to film studios eager to own a piece of the movie house business.
The deal elicited doubt in Hollywood - had a keen dealmaker paid too much? Less than two years later, Perenchio sold the eight-state chain for a reported $300 million.
Now 75, Perenchio is poised for another wildly lucrative exit.
Last month, he agreed to sell his biggest enterprise, Spanish-language media giant Univision Communications Inc., to a private investor group for $12.3 billion plus the assumption of $1.4 billion in debt. . . .
"He doesn't make bad mistakes," said Hollywood producer Bud Yorkin, who was business partners with Perenchio in the 1970s and '80s. "He's always had kind of the proper timing - when to jump in and when to jump out."
Having built Univision into a ratings behemoth, Perenchio saw the time had come to cash in once more.
Some suggest Perenchio's timing could reflect something else.
"Univision may well be at the highest rating level that it may ever achieve," said Julio Rumbaut, a former senior adviser for Univision who now is a private consultant on Hispanic media.
And Telemundo, which is owned by General Electric Co.'s NBC television network, and TV Azteca, remain potential threats, Rumbaut said. . . .
You have to admire the established oak tree, in this case Perenchio, who recognizes when the caterpillars are munching. So many don't.
Posted by John at 9:36 AM | Comments (0) | TrackBackJuly 25, 2006
Cable Systems Poised to Introduce Targeted Ads
Cable companies have some of their own cards to play in a environment of increased competition in media distribution; one is targeted ads. Cablevision is testing such an opportunity, as TelevisionWeek reports:
The New York operator's test, for which it has joined with TV technology firm Visible World, would mark the first widespread trial by a multiple system operator.
Visible World will match commercials in Cablevision's local ad inventory to set-top boxes associated with viewers who might find the ads most relevant by using third-party consumer data. A handful of advertisers including Chase Card Services are expected to participate in the experiment, which will involve more than 100,000 homes in Cablevision's New York state footprint.
Posted by John at 9:04 AM | Comments (0) | TrackBackIf successful, Cablevision will roll out the capability across its 3 million homes next year.
Other operators are expected to follow suit. In fact, the Cablevision endeavor could be the first of an avalanche of similar deals that radically change the TV advertising business, much like Disney's iTunes deal last fall was the first in a wave of new age content distribution deals.
This activity is occurring at a time when traditional TV advertising models are under siege. With the Internet heralded as a more precise form of advertising, the TV industry is fighting back with the latest technology tools that could bring TV buys closer to Web models in terms of precision.
Industry experts claim that targeted TV ads give advertisers a bigger bang for the buck by ensuring, theoretically, that only dog owners, for instance, see ads for dog food.
As another example, an automotive advertiser might target ads to customers whose leases are coming due soon in an addressable advertising world.
"The whole gist is to give your advertisers a much more powerful 30-second unit," said David Kline, president and chief operating officer for Rainbow Advertising Sales, the ad sales arm for Cablevision. "If you knew this would send your message to who you are selling to, you would get a better return."
Cablevision can charge a premium for such ads, he said. . . .
Negotiating Your Cable Bill: Yes, the Day is Coming
I've previously referenced Alan Weinkrantz and his SAtechBlog, where he covers, among other topics, the rollout of the AT&T's U-verse IPTV service in his hometown of San Antonio.
Alan posted the following from one of his colleagues, who negotiated a 34% decrease in his cable bill, while also upgrading his service, after calling Time Warner Cable and outlining what he'd learned about the AT&T product:
I read our local newspaper every day, as well as a second-hand copy of the Wall Street Journal (an iconic publication, of course), and through those sources and the SAtech Blog, have learned a lot about AT&T’s U-verse IPTV. Having also seen a demonstration of how well it performs at Alan’s house, as well as a chart of their introductory pricing for different packages, I’m favorably impressed. Like many people, I’m also pretty disenchanted with the endless increases in the price of cable services due essentially to a virtual monopoly in any given area. No, I won’t do satellite as it’s just no contest with cable (IMO).
So, I called Time Warner Cable and explained in reasonably technical terms, including downstream MBPS rates for high-speed Internet, what seems to be a good set of available packages through AT&T – at potentially better prices than the package of services I was currently receiving. (Bear in mind that my genuine interest was in keeping my Time Warner Cable package but to receive it at a lower price.)
After considerable discussion and evaluation by the TWC representative (and being put on hold a couple of times for what I’m sure was a little discussion with a supervisor and some coaching), I actually got a better package and for a lower price!
They added a movie/premium set of channels and bumped my RoadRunner up to the Premium level – yet lowered my cable bill by 34%! The caveat is it will be for a one year period of time, after which a couple of the items would go up in price. But that’s fine with me; saving money is a good thing and we can assess things again in a year.
The key note about this whole transaction and anyone else who might consider doing it is how dependent it can be on what one's current service package contains. We have a pretty extensive set of services that ran us well over $100 before, so TWC was sufficiently motivated to keep us as a customer. As for whether or not we will consider a switch to AT&T’s IPTV in the future, only time – and competitive pricing – will tell.
This anecdote says something about Time Warner Cable's view of the competitive threat posed by AT&T.
Posted by John at 8:36 AM | Comments (0) | TrackBackJuly 14, 2006
AT&T Gearing Up Its TV Offering
Alan Weinkrantz writes the SAtechBlog, which represents "a conversation about the technology industry ecosystem of San Antonio and South Texas." He's doing a terrific job covering the launch of AT&T's U-verse Internet-based TV service in San Antonio, and he recently offered a few reasons why he believes the product will be a major success:
1. AT&T will succeed at its IPTV strategy not because of technology but rather because of culture, will, execution style, and political smarts.
2. Initially starting in Texas, rather than having to start in New York, California or New Jersey and gaining approval through the Texas Legislature, helped set a precedent for other state-wide governing bodies to allow AT&T to enter "the cable business." (See Blogger David Dean's insight on this by clicking here.)
3. The company’s retail presence through its current rendition of its Cingular stores will eventually transform into the new AT&T stores where you will be able to buy bundled voice, Internet, wireless and of course, broadcast TV services.
4. The branding of the u-Verse concept offers compelling partnering opportunities with the likes of 2Wire, Microsoft and Yahoo helps bring credibility and a sense of being forward thinking-- and cool.
It's been quite a while since I've seen the terms "AT&T" and "cool" paired!
The transformation of the Cingular stores into bundled communications retail outlets is fascinating to me. The product, of course, has to be a good one, or it doesn't matter how many stores you have. If the U-verse offering is indeed very competitive, then having hundreds of storefronts could give AT&T a tremendous competitive advantage over their cable competitors like Time Warner and Comcast.
Regardless of whether AT&T is as successful as Alan believes, one thing is very clear: the competition in media distribution is only going to get more brutal.
Posted by John at 5:59 AM | Comments (0) | TrackBackJuly 10, 2006
Hispanic TV Upfront Very Strong
Univision, as well as the smaller Telemundo, are expected to see substantial gains over last year. Merrill Lynch analyst Jessica Reif Cohen is forecasting that Univision will pull in some $1.11 billion in ad sales for the upcoming season, a 10 percent increase over last year's upfront market.
Posted by John at 4:25 AM | Comments (0) | TrackBackCohen expects NBC Universal’s Telemundo to see its upfront sales increase by 25 percent, to $330 million. Overall, spending in the Spanish-language upfront is expected to be up 12.5 percent, to just under $1.45 billion. That includes TeleFutura and cable network Galavision, both owned by Univision, and other Spanish-language cable networks. . . .
David Joyce, an analyst with institutional investment firm Miller Tabak, is projecting a 10 percent increase for the Spanish-language upfront, to $1.4 billion. . . .
Meanwhile, the English-language networks, broadcast and cable, continue to lag. . . .
July 5, 2006
Made in the U.S.: Telenovelas for U.S. Hispanic Audiences
The Washington Post reports that telenovelas for U.S. Hispanic audiences are increasingly being shot and produced domestically:
So far this year, seven telenovelas have been taped in Miami, according to the Miami-Dade County film office, and the city now bustles with casting calls. Actors, writers, directors and cameramen from all over the Latin world arrive in a steady stream. Classes for telenovela acting and writing -- such as the one created by Telemundo President Don Browne and led by Stopello -- hone local and international talents.
Posted by John at 8:36 AM | Comments (0) | TrackBack"A lot of our audience came from Mexico, they're Mexican, but their life experiences are much different" than people who haven't emigrated, Browne said. "The humor is different. The pacing is different. It was critical for us to be more relevant."
One recent telenovela, "Anita No Te Rajes" (Anita Don't Give Up), revolved around the adventures of an illegal immigrant. Characters in another were depicted commenting on President Bush's recently televised speech on immigration.
"Everyone reduces their appeal down to language -- and it's not just language," Browne said. "It's cultural relevance."
Television Viewing Habits of U.S. Hispanics May Confound Some Expectations
A recent study of U.S. Hispanic television viewers finds that 55% watch both Spanish and English language channels. Only 12% view only English language television, while only 31% limit themselves to Spanish-language programs.
To confound those trying to draw conclusions from birth origin, 57% of U.S. Hispanics born in other countries watch English language television, while 75% of Hispanics born in the U.S. watch television in Spanish.
Interestingly, news programs and political talk shows (68%) are watched by more U.S. Hispanics that those who watch telenovelas (43%).
Further evidence that U.S. Hispanics are not some monolithic, "one size fits all" demographic.
June 28, 2006
Content is THE Differentiator for Media Distributors
Broadband speeds offered by telcos and cable operators are likely to converge, Cable World argues, meaning that content will remain king in media:
. . . broadband competitors will eventually reach virtual speed parity and, like the superpowers of the Cold War, could arrive at a stalemate. As a result, providing exclusive content and applications to broadband customers might provide the crucial competitive edge. "High-speed data pipes are quickly being commoditized," says Tanya VanCourt, VP and general manager of ESPN Broadband and Interactive Television. "Providers have to figure out how to differentiate themselves and their relevance to their audience." . . .
. . . cable operators are already forging content alliances and creating concepts that capitalize on broadband speeds. In May, for example, Comcast partnered with IGN Entertainment to launch Game Invasion, a new broadband gaming service designed to drive gamers to its premium 8 Mbps broadband tier. In October, Comcast partnered with programmer OLN and the National Hockey League to stream live games over broadband. A month later, Cox announced Premium Access Pass, which offers subscription-based content from its "Best of the Web Zone" and "Sports Zone" packages of broadband video and other content. Time Warner Cable, meanwhile, offers broadband content from dozens of cable programmers through its Road Runner portal and in partnership with affiliated America Online.
Posted by John at 8:59 AM | Comments (0) | TrackBackAt the same time, MSOs' content strategies are evolving. "We're still in the testing phase in terms of content business models," says Cook. Companies in the Web video space that would like to partner with MSOs and telcos are anxious to explore new models.
As Internet-based services like Google, iTunes, MySpace and YouTube continue to gain customers with multimedia content, some Internet players wonder whether MSOs and telcos will start their own similar services to compete--or whether they might strike new partnerships with successful Internet content firms. "Will you see the cable companies and telcos at the level of the application space?" asks Greg Kostello, CEO of music-oriented video site Vmix.com. "It's unclear right now. Their portals aren't very visited, and they really haven't figured out that consumer offering."
Content partnerships, however, are moving forward rapidly: AT&T is giving its broadband customers access to Akimbo's library of more than 10,000 videos and to TotalVid's more than 2,600 entertainment and instructional videos. Recently it inked a pact with Starz Entertainment Group-owned Vongo to offer its movie-download subscription service to AT&T broadband customers. In May, it partnered with mobile content aggregator MobiTV to deliver video through nearly 7,000 AT&T Wi-Fi hot spots across the U.S. "Today's consumers are looking for readily available video and entertainment-related content to enhance their broadband experience," AT&T's Sarah Baker says. . . .
VanCourt says broadband access providers should start promoting the availability of such content rather than more commoditized perks like spam protection and pop-up blockers. "[Content] gives consumers a reason to choose that high-speed connection over another one," she says. VanCourt predicts that exclusive broadband content deals could be on the horizon. "There are a number of different business models out there, and people are trying to figure it out," she says. "If history is any indication...there might be some exclusive deals done." She says one historical example in the multichannel world is DirecTV's NFL Sunday Ticket, which gives subscribers exclusive live access to all NFL football games across the country. . . .
June 10, 2006
The Value of Media Distribution Takes Another Hit
The value of media distribution, relative to content, slides further:
Posted by John at 4:31 AM | Comments (0) | TrackBackMonopolies in many cable TV markets could end under House-passed legislation that supporters say would increase competition and drive down prices.
The far-reaching telecommunications legislation, passed 321-101 Thursday night, would encourage telephone companies and others to enter video markets by scrapping the time-consuming system where prospective providers must negotiate individually with every locality.
(from USA Today)
June 9, 2006
Among College Students, iPods are More Popular than Beer
In biannual surveys among college students of what is most "in", beer has been the perennial winner since 1997, when it was breifly displaced by the Internet. In the latest survey conducted by Student Monitor, however, iPods finished first, ahead of beer. (Thanks to the Popular Science blog for the pointer.)
Posted by John at 4:03 AM | Comments (0) | TrackBackMay 21, 2006
Google I've Heard Of, But Who's CBS?
. . . Only one in four 12- to 34-year-olds can name all four major broadcast networks: ABC, NBC, CBS and Fox.
The finding comes via an online poll conducted by Bolt Media, a 10-year-old Web site that six weeks ago relaunched itself as a place for users to upload videos and photos. About 400 members responded to the questions, including one that asked how respondents spent their free time.
Posted by John at 9:36 AM | Comments (0) | TrackBackThe most popular activity? That would be surfing the Internet, which 84% said they did during their idle periods. Hanging out with friends came in second at 76%, watching movies third at 71% and TV viewing fourth at 69%. The five most-watched TV networks were Fox, Comedy Central, ABC, MTV and Cartoon Network.
"There's a massive movement going on in people under 30 and how they spend their media time," said Bolt President Lou Kerner, who once upon a time was a cable analyst on Wall Street before leaving to run TV.com and then Bolt. "Our audience spends lots of time on net, creating their own media." . . .
May 18, 2006
Univision Taking on the English Language Competition for Ratings
It's upfront season, in which various networks unveil their new shows for the upcoming television season. Univision is making the case for being considered an equal to the large mainstream networks:
Claiming to be out-rating one of the Big Four networks among the 18-34 demographic every other night, Hispanic network Univision has today unveiled its own 2006/07 mini-upfront.
Univision, since December included in Nielsen's National Television Index (NTI), "is now competing in a new arena in which our ratings successes can be seen in the same playing field as that of the English-language networks," said Alina Falcon, executive VP and operating manager, Univision Television Network. . . .
Given their recent performance, and the underlying trend of their core demographic, such talk is not idle boastfulness, by any means.
Posted by John at 7:26 AM | Comments (0) | TrackBackMarch 16, 2006
Media Companies: Change or Die
In a speech in London on Monday night, Rupert Murdoch looked ahead into a future very different from the one in which he built his media empire. The Guardian reports:
"Power is moving away from the old elite in our industry - the editors, the chief executives and, let's face it, the proprietors," said Mr Murdoch, having flown into London from New York after celebrating his 75th birthday on Saturday.
Far from mourning its passing, he evangelised about a digital future that would put that power in the hands of those already launching a blog every second, sharing photos and music online and downloading television programmes on demand. "A new generation of media consumers has risen demanding content delivered when they want it, how they want it, and very much as they want it," he said. . . .
"It is difficult, indeed dangerous, to underestimate the huge changes this revolution will bring or the power of developing technologies to build and destroy - not just companies but whole countries."
The owner of Fox News added: "Never has the flow of information and ideas, of hard news and reasoned comment, been more important. The force of our democratic beliefs is a key weapon in the war against religious fanaticism and the terrorism it breeds."
. . . he combined his new-found enthusiasm for the digital future with a "change or die" message for the monolithic media empires of the 20th century.
"Societies or companies that expect a glorious past to shield them from the forces of change driven by advancing technology will fail and fall," he warned. "That applies as much to my own, the media industry, as to every other business on the planet.” . . .
He had some words of hope for his industry peers buffeted by declining circulations, free titles and the internet. "I believe traditional newspapers have many years of life but, equally, I think in the future that newsprint and ink will be just one of many channels to our readers," he said, predicting a future in which "media becomes like fast food" with consumers watching news, sport and film clips as they travel, on mobile phones or handheld wireless devices.
"Great journalism will always attract readers. The words, pictures and graphics that are the stuff of journalism have to be brilliantly packaged; they must feed the mind and move the heart," he enthused. . . .
. . . Mr Murdoch has undergone a Damascene conversion, admitting he hugely underestimated the power of the web. He said last night: "It is a creative, destructive technology that is still in its infancy, yet breaking and remaking everything in its path. We are all on a journey, not just the privileged few, and technology will take us to a destination that is defined by the limits of our creativity, our confidence and our courage."
I admire any person who, at age 75, is spending their days looking toward the future instead of resting on their accomplishments.
(Thanks to the POMO Blog for the pointer.)
Posted by John at 5:06 AM | Comments (0) | TrackBackMarch 10, 2006
Univision, the Horse and Buggy Company?
Univision’s sale is timely, not only for the reasons I’ve mentioned previously, but because the Latino audience is getting more complex and multi-hued. This complexity does not fit with Univision’s rather monochromatic approach to the market.
Today's front page New York Times article explains this issue quite well:
Any new owner would have to wrestle with the shifting dynamics of the company's audience. More Latinos are American-born and English-speaking, and their tastes in television are changing more quickly than Univision's shows.
That poses challenges not only for Univision but for other Spanish- and English-language networks. For the first time, networks on each side of the language divide could significantly expand their audiences by pursuing the same demographic group: second- and third-generation Latinos who are bilingual or speak mostly English and are as likely to watch "Fear Factor" on NBC as "El Gordo y la Flaca" ("The Scoop and the Skinny") on Univision, and who are largely underserved in either language.
"This audience wants to be validated," said Jeff Valdez, founder of SiTV, a two-year-old English-language cable network that caters to young Latinos and multicultural urban youth. "They want to see themselves on screen. They want to hear their stories." . . .
So far, Univision, whose officials declined to be interviewed, has captured Latino audiences of all ages both by keeping English out of its programs and commercials and by sticking to a prime-time lineup anchored in telenovelas from Mexico. There has been little reason to change — of the 100 most-watched Spanish-language shows in the United States, Nielsen Media Research figures show, 90 are on Univision.
But the ground is shifting under this powerhouse. Births are outpacing immigration as the main source of Latino growth, and these American-born Latinos — already 60 percent of all Latinos — are less likely to primarily speak Spanish and are better educated, higher earners and more prone to marry outside their ethnic group than the immigrant generations that preceded them. As television viewers, a recent study found, they prefer programming in English, though at least half also watch Spanish programs. . . .
"Imagine if this big giant allowed for some sort of hybrid programming," said David R. Morse, president and chief executive of New American Dimensions, which conducted the study of younger Latino viewers.
"I think of them as a horse-and-buggy company," he said of Univision. "In 1910, 1920, people are going to want to drive automobiles, and you should be getting into the automobile business." . . .
Calling Univision the horse-and-buggy company may be a bit far-fetched, as the company has considerable resources which will only be augmented if a group led by Televisa gets a deal done.
That said, consider Univision’s business model and approach to its viewers in the context of Jennifer Woodard Maderazo’s comment on her blog, Latin_KNOW: The Latino Marketing Report:
Until marketers realize that "Latino" is a term that we lazily use to define a community -- one that doesn't exist outside of the United States -- that is extremely diverse and comprised of people as different among themselves as they are from you, no one will truly conquer this market.
It’s just about impossible, in the media world, to be "extremely diverse" and maintain an 80% market share. The mainstream networks couldn’t do it, and there’s no reason to expect Univision to be any different.
Posted by John at 11:01 PM | Comments (0) | TrackBackMarch 9, 2006
A Further Slide in the Value of Media Distribution Coming
In a setback for cable, key House lawmakers Wednesday night agreed in principle to award a national cable franchise to phone companies and to subject cable operators to continued local franchising requirements until phone rivals have reached 15% local-video-market penetration, industry and Capitol Hill aides said Thursday morning.
The agreement was reached by House Energy and Commerce Committee chairman Joe Barton (R-Texas), Telecommunications and the Internet Subcommittee chairman Fred Upton (R-Mich.) and Reps. Chip Pickering (R-Miss.), John Dingell (D-Mich.) and Edward Markey (D-Mass.), the sources said.
AT&T Inc. and Verizon Communications Inc. have been urging Congress to adopt a national-franchise policy, but the agreement includes provisions that have not been publicly debated.
Senate Commerce Committee chairman Ted Stevens (R-Alaska) is expected to unveil a bill soon that is expected to include cable-franchising relief for the large phone companies. . . .
If this agreement becomes law, Verizon and AT&T will likely speed up their introduction of cable television services in major markets across the country, putting pressure on cable pricing in general.
Lower distribution prices means the value of media distribution, relative to content, continues to decline.
Posted by John at 11:05 AM | Comments (0) | TrackBackMarch 3, 2006
Hispanic TV Advertising: Moving from Warmth to Entertainment
BusinessWeek notes a trend in Hispanic television advertising to edgier, more entertaining spots in lieu of "warm and fuzzy" ads appealing to traditions like family:
Posted by John at 4:25 AM | Comments (0) | TrackBackThe four-year-old Grupo Gallegos has been a catalyst for advertisers rethinking the conventional Hallmark-card style. Two years ago the agency woke up Hispanic advertising with a TV spot for Fox Sports Net Inc., depicting a Hispanic housewife returning from shopping and detecting a bad smell in her house. Free of dialogue, the camera follows her around the house and finally into her living room, where she finds her husband so glued to a soccer game that he has been watching from the nearby toilet with the door open. "That was a great example of taking a slice of life from a husband and wife, no matter the culture, and pushing the ad into entertainment," says Hispanic marketing consultant Jennifer Woodard, who writes The Latino Marketing Report Web site and blog. Gallegos recalls his excitement when the ad took on much coveted viral status: He received a mass e-mail headlined "Why Women Hate Sports" with a link to the ad. The agency also put Latinos in Fruit of the Loom apple, grape, and banana suits. And last year, Gallegos won awards for an Energizer battery ad showing a Hispanic man, with an arm transplanted from a Japanese man, who couldn't stop taking pictures with his new hand.
February 26, 2006
Don Knotts, RIP
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Here’s a vignette of that genius, from BarneyFife.com:
Barney: Nice guys finish last. I know, I went through it. Little Vickie Harms. I wasn't no bigger than Opie. I met her over by the ice cream parlor. Stepped outside one day with my raspberry snow cone, there she was. She just stopped me cold. Head to foot, I was just clammy all over. I knew it was love. Icy chills just run all over me.
Andy: Sounds to me more like your show cone was leaking.
Barney: Boy I sure did like her.
Andy: She didn't like you back, huh?
Barney: Oh well no, it wasn't that so much. I don't know. It was mostly her stuck up attitude.
Andy: Yeah?
Barney: She used to walk around in long curls and print dresses and patented leather shoes and her nose up in the air. Boy she really thought she was hot stuff.
Andy: Why?
Barney: Oh her Daddy was in the civil service. Boy if I knew then what I know now. She used to do one thing that really used to burn me up.
Andy: What was that.
Barney: Well you know how I like snow cones...
Andy: Raspberry.
Barney: Right. Well there wasn't a day went by that I didn't offer that girl a bite of my snow cone. You know what she used to do every single time?
Andy: What?
Barney: She used to bite off the end, sip out all the syrup, and leave me with nothing but the ice.
Andy: The ice?
Barney: Yeah, the ice.
Andy: That's terrible.
Barney: Yeah.
Andy: Today you'd know different.
Barney: Oh are you kidding. Listen if I had a date with Vickie Harms today, and I got myself all shaved, and I went over to her house with my snow cone, you know what I'd do?
Andy: What?
Barney: The minute she opened that door, I bite off the end of the cone, sip out the syrup, and hand her the ice. What do you think of that?
Andy: Well I'll tell you the truth, Barn. If I was Vickie Harms and a thirty-five year old man come up to my house with a snow cone in his hand, I wouldn't even answer the door.
Thanks for all the laughs, Don. Rest in peace.
Posted by John at 10:15 PM | Comments (0) | TrackBackA Reality Show from Guatemala I'd Love to See
The Apprentice, Donald Trump’s ego vehicle, holds zero interest for me. (OK, less than zero.) I would love to see, however, a new Guatemalan reality show which the Washington Post’s Marcela Sanchez reports on:
Posted by John at 8:57 PM | Comments (0) | TrackBackAs reality shows go, Guatemala's "Desafio 10" would seem destined to be a flop: 10 strangers live in a house for two weeks where they study basic accounting, marketing and customer service. Cameras roll, the young men become friends, some go into business together.
Pretty boring stuff until you realize the 10 participants are former members of some of the most infamous gangs in the Americas -- Mara Salvatrucha, 18th Street, White Fence and North Hollywood. These are the guys that "everybody wants dead or in jail," said Harold Sibaja, the show's creator. . . .
Carlos Zuniga, Guatemalan business leader and mentor to five of the 10, was once convinced, as most Guatemalans are, that the gang problem can only be solved by law enforcement. Through his participation in the show, however, he came to believe that most of the gang members are in fact victims of poverty, abuse and abandonment, and that Guatemalan businessmen can no longer afford to be seen as "soulless with no social conscience." . . .
During the taping, the 10 participants were divided into two groups, each given the task of starting a small business. One group opened a shoeshine and shoe repair shop that has began seeing some success, thanks to its prime location in one of the largest office buildings in Guatemala City. The other group, Zuniga's, chose to start a car wash. While the car wash business has been slower, both Zuniga and Sibaja are convinced that will quickly change once the show airs. Initially all participants wore masks to hide their identities during the taping. But as the days went on all but two took them off. Perez, who was one of the last to remove his mask, said it was fear that kept him wearing it longer. But suddenly he said he got sick of the mask as he realized that "I don't need to be hiding, I am not a criminal no more."
February 20, 2006
Telemundo’s Don Browne on Hispanic Market Opportunities
Don Browne, President of Telemundo, offered his own perspective in a New York Times interview on Univision’s possible sale, but more important, a look at bigger opportunity in Hispanic media in general:
Q. Warner Brothers and CBS recently decided to focus their two broadcast networks, WB and UPN, on a younger, minority market. What does that mean for the general television landscape?
A. I think it's interesting. I think the business is consolidating. I think it reinforces, again, that we are involved with a very dynamic audience that is growing and evolving and is attractive to everyone. Everyone is trying to figure out how to get the Spanish-language audience. But it's not so much the Spanish language, it's much more about culture: How do we bring relevance into our product to attract this audience?
Q. But advertisers aren't yet paying a premium for this audience.
A. But I think that's the beauty of our business. Advertisers are — it's like a giant that's waking up. I think that advertisers are starting to realize the giant is the U.S. Hispanic population, which is growing dramatically. And I think as they begin to get a sense of the power of that consumer block, we're going to see an acceleration of that general market dollar coming very aggressively into the Spanish-language world.
Q. Isn't part of the problem that advertisers have tended to see the audience as a lower-end market?
A. I just think it's not necessarily lower end, but lack of awareness of how you market to them. Again, what happened four years ago, when G.E. and NBC bought Telemundo, I think it really sent a significant signal to the marketplace that this is a really important market. I think the fact that Univision is for sale and the buyers that are being mentioned are significant players, I think this is the type of news that will stimulate the general market advertiser to accelerate their dollars into our marketplace.
Browne is exactly right. While Hispanic media advertising is growing faster than the overall market, it is still being restrained both by an underestimation of Hispanic buying power and a lack of understanding of the Hispanic market.
Quite simply, Hispanic media advertising dollars are rising at an above-average rate, but they could be growing even faster.
Posted by John at 5:44 AM | Comments (0) | TrackBackFebruary 12, 2006
Spanish-Language Radio Station and Listenership Continues to Grow
Spanish language-radio ratings and stations continue to rise. There are now 351 stations with Hispanic formats, up from 314 only a year ago. The average listening share increased to 8.9 from 8.2.
These findings come from Katz Media Group, which just finished a new study of radio formats and fall Arbitron ratings of over 4,400 stations in the top 294 markets in the U.S.
The most programmed format radio format is Country, with 544 stations and a 14.2 average audience share.
Posted by John at 5:58 AM | Comments (0) | TrackBackFebruary 9, 2006
A Possible Sale of Univision: It All Makes Sense
Is it any wonder Univision is "exploring strategic alternatives?" Not when you add up the following:
--What better time to reap the rewards of a business with an 85% share of the U.S. Hispanic television market and 69 radio stations in 16 of the top 25 Hispanic markets? Exceedingly few businesses (even fewer in media) maintain such market shares indefinitely.
--The Hispanic segment is one of the few in traditional media which could be described as "dynamic."
--Private equity money abounds.
--The caterpillars are munching.
Posted by John at 5:55 PM | Comments (0) | TrackBackFebruary 2, 2006
Univision Officially the Fifth Largest Television Network
Now that Univision has joined Nielsen Media Research's national TV ratings service (NTI), it’s official: the network is a solid number five in the ratings, ahead of WB and UPN networks.
Univision had previously been including only in Nielsen Hispanic Television Index, a separate ratings service that measures only Hispanic audiences.
On various nights and time slots, Univision has entered the top four in viewers age 18-34, landing among CBS, ABC, Fox, and NBC.
Posted by John at 7:14 AM | Comments (0) | TrackBack