Univision unveiled
Execs target 10% aud share for second net
The yet-to-be-named net will bow Jan. 1. During a conference call with analysts to discuss new programming supply deals, executive vice president Andy Hobson said Univision assumes the second network can pull in a 10% audience share and 5% of Spanish-lingo TV ad revenue.
He said it will have a cost structure of $80 million-$100 million, with capital expenditures of $20 million-$25 million, but declined to break down how much will be invested in programming.
Two programming deals announced Monday with broadcasters RCN of Colombia and Radio Caracas Television (RCTV) of Venezuela will help feed the second network, as well as the flagship net and cable channel Galavision.
A five-year exclusive pact with RCN calls for a minimum of 300 hours of novelas each year -- roughly two full novelas -- and a 10-year exclusive deal with RCTV covers a minimum of 780 soap hours, about five novelas.
Univision will pay a flat license fee per hours acquired and can purchase other programming.
Content from the RCN and RCTV deals also can be broadcast in Puerto Rico, where Univision is acquiring two stations from Raycom for $190 million. The Puerto Rico fees are considerably lower.
"This programming is less expensive than producing in the United States," said network prexy Ray Rodriguez.
Telemundo has shifted from straight acquisitions to novela co-productions with Mexico's Argos, Colombia's Caracol and RTI and Brazil's Globo -- but all the soaps will be made outside the U.S. Its fall schedule includes a morning novela block in addition to a full primetime lineup of soaps.
Counterpunch
Univision plans to counterprogram the new net against both the flagship Univision network and Telemundo.
"If you are not a novela watcher, at 7, 8 or 9 p.m., you're not watching Univision or Telemundo," Rodriguez told investors.
RCN's sequel to the international hit "Betty La Fea," called "Eco Moda," is likely to air on the lead network, and Rodriguez believes its ratings will benefit from stronger lead-ins on Univision.
Execs expect half of the second network's aud to consist of Spanish-dominant viewers not currently tuning in to Spanish-lingo TV, and the other half split between Telemundo and Univision defectors.
Under a supply agreement in effect until 2017, Univision cannot air Televisa programming -- staples of its primetime -- on the second network.
The deal with Televisa is unaffected by the RCN and RCTV accords, said Hobson. "Nor do the deals preclude us from doing a broader deal with Televisa."
