Media companies are piling into the Hispanic market. But will it pay off?
Univision is still the biggest Hispanic network, beaten in prime time only by
four networks in English—ABC, NBC, CBS and Fox—according to Nielsen’s ratings.
Bought by private-equity firms in 2006 for $13.7 billion, Univision has launched
new channels and digital initiatives, and is expected to go public in the next
two years. It is aimed at Hispanics of Mexican origin, who are around two-thirds
of the Hispanic population in America, and imports telenovelas from Mexico; Telemundo makes its own, and caters
to Caribbean Hispanics.
Emilio Romano, the boss of Telemundo, insists it is a “big validation of our
business” that media giants are piling into its market. But is this wise?
Although the population of Hispanics is growing, they actually spend less time
watching television than other groups in America, and watch more on mobile
devices, which is trickier for media firms to earn money from. Advertisers pay
half the average price for spots on Hispanic television, mainly because Hispanic
families’ median income of around $40,000, although growing, is still a third
below the average American household’s.
