TV Merger Spotlights the Rise Of Latin-Oriented Television

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The acquisition by LATV Networks LLC of an East Coast production company puts the spotlight on the growing role of Latin-oriented culture in English-language media.

The merger will create a wider menu of programming for the combined venture to broadcast in places such as Idaho, not usually thought of as major Hispanic markets.

Los Angeles-based LATV produces shows that are broadcast on KJLA channels 33 and 57, plus 19 stations across the country via new digital technology. On Jan. 21, the network announced a deal to buy American Latino TV, which makes syndicated magazine-format shows “American Latino TV” and “LatiNation.” The shows air on about 100 stations each, mostly in Saturday or Sunday time slots.

LATV’s programming mostly consists of music videos, and a few lifestyle and comedy programs. Two animation series are in the works, one of them featuring the Homies line of toys.

Both halves of the new entity share the same audience the 18- to 24-year-old bicultural Hispanic, according to Howard Bolter, president of LATV.

But Bolter believes his brand of Latino-oriented English-language TV can win audiences in markets across the country regardless of location and demographic. He points out that LATV recently signed affiliate stations in Pocatello, Idaho, and Jacksonville, Fla. not exactly high-density Hispanic markets.

“We think bicultural programming has appeal worldwide,” Bolter explained. “We don’t see any impediment to expanding our coverage nationwide.”

Robert Rose, the former president of American Latino TV and now a producer for the combined company, hopes the acquisition acts as a catalyst for change in the Hispanic advertising industry.

“Most Latinos are U.S. born and simply do not consume Spanish-language media, especially TV,” he said. “There is no way advertisers should be spending over 90 percent of their Hispanic TV ad dollars in Spanish. But Spanish TV and Univision in particular has been the 800-pound gorilla for years. Now the scales are tipping in our favor a bit. There’s a long way to go but this merger is the first step, and a big one.”



Different picture


Both LATV and American Latino TV were founded on the belief that Hispanics want English-language television with programming that fits their interests.

Rose and Bolter remain committed to that strategy. Rose acknowledged that ABC’s “The George Lopez Show” and “Ugly Betty” have gained a foothold in the network schedules, but sees them as the exception.

Julio Rumbaut, a Hispanic television consultant based in Miami, agrees there’s a cultural void on TV. “The Disney-ABC production of ‘Ugly Betty’ is a unique example of a major studio focusing on a Latino-style script that is above all a good script,” he said. “Until more majors focus on this, there is room for niche players to provide content to fill this market demand.”

Financial details of the acquisition were not disclosed, and Bolter wouldn’t give any additional information. He did say that Post-Newsweek Media Inc., the division of the Washington Post Co. that owns broadcast stations, is an investor in LATV.

Walter Ulloa, chief executive officer of L.A.-based Entravision Communications Corp., is owner of LATV.

“Let’s put it this way: We’re not going broke,” Bolter said.

American Latino TV will continue to produce its shows in New York, while LATV will continue in L.A., although they will also be sharing production facilities. And the deal gives LATV an advertising sales base in New York.

“Since the announcement, we’ve been fielding calls from eager advertisers,” said Rose, a former ad salesman at Univision.

“What has been missing is a critical mass, 360-degree approach to reaching the Latino market in any credible way,” he said. “That barrier is now removed.”

LATV will try to get stations to carry its digital signal on a separate channel, while American Latino TV is asking stations to add its shows. The new company will combine those efforts.

“So there’s a tremendous synergy there,” Bolter said. “Part of the strategy behind the combination of the two companies is that getting on analog TV and fostering the desire for this type of programming will only help the network.”

A challenge looms in selling ad time on English-language TV for Hispanics. Typically, advertisers have a Hispanic marketing budget focusing on Spanish-language media, and English TV is a small subcategory within the overall budget. The buyers, agencies and marketers involved have spent their careers dealing with Spanish-language media, according to Rumbaut. The entrance of significant English-language programming means the industry will have to adapt.

Rumbaut predicts that LATV will be taken over by a major studio.

“LATV is building value by building a better mousetrap that a major studio, which is unfamiliar with how to appeal to U.S. Hispanics, will eventually find an attractive acquisition,” he said.

Rose sees the acquisition as a sign of Latino media empowerment.

“If we are successful in growing this business model to its full potential, my hope is stereotypes and under-representation of Latinos in mainstream media will be a thing of the past,” he said. “I see nothing but upside for several years to come.”

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