Pierluigi Gazzolo Discusses Challenges & Opportunities

Pierluigi Gazzolo, CEO of ViX, participated in a panel at Content Americas where he discussed the current state of the industry, opportunities for the upcoming year and highlighted the importance of partnerships for the success of Spanish content in the future.

The panel, which also featured Raúl Berdonés, executive president of Secuoya Content Group, began with Gazzolo sharing his insights on the major trends in the global television landscape. “On the platform side, everything indicates that people are consuming more content than ever. No one imagined that the average subscriptions in Hispanic households in the U.S. would be 4.5, significantly surpassing the general market. It was also not anticipated that there would be consumption of more than five global content applications. In some cases, even the consumption of live television has increased. This is a trend we are already familiar with.”

He added: “FAST is a more recent evolution. I believe this has greatly transformed the industry, where now even many smartphones have built-in television channels. For example, you turn on a latest-model Samsung, and the first thing that appears is the news channels. You can watch FAST channels, and we distribute them as well, [such as ViX].”

In that regard, Berdonés said: “This is a current trend, not only in terms of discussing sales possibilities with FAST channels but also because I think we are already seeing, over the years, many of those present today consuming more relevant content. This is because we have observed a decrease in investment by market players in the last year, and I sincerely believe we are witnessing a reduction in the number of productions. This benefits everyone. I think there will be fewer productions, which will clean up the market. It’s a reality. Some segments of the production industry may suffer a bit, but I believe, without a doubt, there will be much more consumption, and, above all, great products will be consolidated. The trend for us is to invest in a great product, with higher quality, more resources and, best of all, with [more players to sell to].”

Regarding the reduction of players in the market, Gazzolo noted: “I think if consumption continues, everyone wins at the end of the day, even if there is a potential conflict of interest regarding the platform. ViX is present everywhere, and we are very privileged. Additionally, the highest consumption in terms of hours comes from television, as you can do it passively in your living room. Another trend that also applies to this, and that I believe will create an opportunity for everyone to participate, is windowing.”

“It is clear that many people prefer a larger product for a better price,” Berdonés continued. “We’ve gone from having all content available across the platform to reaching the opposite extreme, where they only want exclusive content for their platform. Everyone is seeking exclusivity. With our current model, where we avoid restrictions from the start, it seems like we are on the right path. Now the opportunity arises to return to a neutral position, where there is original content but also licensed content and the flexibility for everything to be possible.”

He added, “This is beneficial because it allows people to have their content where they believe it will work best, without depending on consultants, and they can sell it elsewhere. Most importantly, it’s about having control over the success of products and producers, i.e. retaining intellectual property and the right to a shared return on investment. I believe without a doubt that this is something we are observing in this current trend.”

Expanding on windowing, Gazzolo stated, “In our case, we already had ViX premium and the free ViX tier available. What is on ViX premium goes to the free tier after a certain time, and what is also free later goes to the FAST channels.

“Regarding our windowing processes in general, we launched a year and a half ago with a significant benefit, and that benefit was that we didn’t have to be global. We think in Spanish and produce in Spanish for people who want to consume in Spanish. So, it’s not unreasonable to think about it. Geographically, we were already working with everyone, including Secuoya, Globoplay, Mediapro and Movistar, where all the other territories collaborate and co-produce with us to move forward together. We’ve been doing this since day one. This year, we will start exploring windowing within Latin America. At the end of the day, I want to continue maintaining a volume of originals. I think it’s all related to the quantity of originals, but costs must also be managed while maintaining quality.”

When asked about the biggest challenge faced by producers who want to retain their IP, Berdonés commented that the most complicated aspect is financing. “I think the biggest challenge is being able to finance intellectual property (IP), be it a series or a film, without relying exclusively on a single player, avoiding a single platform having absolute control over financial resources. Achieving that balance or essential financing is something that is being accomplished in Spain.”

Gazzolo added that it is crucial for “producers to find creative ways to produce high-quality content at a viable cost.” He emphasized that there are ways to achieve this with very high quality, as demonstrated by Secuoya and even in Hollywood, at a much lower cost. This can be addressed through various avenues, such as leveraging local incentives, engaging in co-productions or seeking partners for investment. However, the producer must consider that the landscape has changed, and the trend is larger than one might anticipate. Whether for a newly launched streamer like ViX or a global platform like Netflix, the primary expectation is profitability. Therefore, everyone will be focused on that, and it is necessary to capitalize on the fact that we are in an industry and geography where we can excel and reach that level.”

He mentioned that another challenge as a platform is knowing when to create hyper-local, panregional and global content. “This is something we are constantly analyzing. We also acquired Argos in Mexico. We plan to create even more Mexican content within Televisa and in collaboration with Argos. However, it is necessary to assess to what extent that content can be suitable. Maintaining a delicate balance is crucial for us.”

For Berdonés, an important factor is to create significant connections for production between Spain, Europe and Latin America. “I think it is essential that we come to an agreement and establish a bridge of collaboration between Spain, Europe and Latin America. The moment we believe that this bridge is effective, that we share a story, that we speak without considering one is more important than the other and that we recognize and know how to combine talent, financing and resources, we will be taking a significant step.”

Regarding opportunities for the future, Gazzolo stated: “I believe FAST is an excellent opportunity for everyone, both for producers and distributors and platforms. The documentary genre is another very valuable opportunity. I think consumers increasingly enjoy documentaries. You can see it even on the platforms, observing how they respond. Consumers appreciate recommended documentaries, as many more people are watching this type of content.”