Televisa’s José Antonio Bastón <div style=

May 2007

By Maria Teresa Alvarado

Grupo Televisa is not only the market leader in free TV and pay TV in Mexico—it is also the largest producer of Spanish-language product in the world. It operates four free-TV channels that reach 98 percent of the Mexican population, as well as some 30 international channels. The Mexican media giant also produces about 50,000 hours of programming each year, much of which is distributed around the world. Keeping its eye focused on international expansion and new media, Grupo Televisa recently expressed interest in making a bid for the Dutch format producer Endemol. In an exclusive interview conducted in his office in Mexico City, José Antonio Bastón, who is in charge of Televisa’s television operations, offers his view of the company.

WS: When will the Mexican TV market switch from analog to digital transmissions?

BASTÓN: Regulation states that the switch will take place in 2023, so we have a long time to prepare ourselves. We are, however, already transmitting in digital on our Channel 48, which is an experimental channel. There is no digital channel yet with national distribution. For the past several years we have been producing a good amount of hours every year in digital, and this also includes high definition. Of the five telenovelas that we produce simultaneously, two are in HD. Even though national regulation doesn’t require us to produce in digital, we want to be competitive with any production in the world. Of four [new] productions that we aired in April; one was shot on film and the other three in HD. As with any major studio in the U.S., we want to compete on a global level, and because of this our product must be of the highest quality. Without doubt, we are not only a player in Mexico, but on a worldwide level. Currently, all our content is being digitalized so that it can be distributed on any digital outlet, be it the Internet or mobile phones. We already have a considerable amount of our thousands and thousands of hours of programming in our library that has been digitalized and archived.

WS: How important is the Televisa Networks division for the entire Televisa group?

BASTÓN: Televisa Networks has had impressive growth and has been important to the growth of pay TV not only in Mexico, but also internationally. The ratings of its various pay-TV channels have been quite good. We are in the process of deciding what new channels we should launch. We [just launched] a nostalgia channel whose target audience will always be there. Personally it fascinates me because it will allow me to see programs I saw 20 or 25 years ago. And I think that these shows will showcase the history of our company. I think this channel will have significant success and it will have a target audience that is not young. We are in the process of analyzing Televisa Networks’ programming offering. The division has earned extraordinary results on the subscription side; now we have to work on the advertising sales side. We are analyzing which audience demographics are not being targeted in the pay-TV window so that we can create new channels, so that Televisa Networks can offer the complete range of socio?economic, age and gender audience groups that advertising clients are looking for. We are moving forward on this very quickly and it’s quite probable that we will have an important announcement regarding this at the end of the year.

WS: What plans do you have in Asia?

BASTÓN:  We have just signed an agreement with the Chinese government that will allow for a range of activities. Through our facilities we can transmit CCTV International to the Chinese population in Mexico. Televisa can also take its formats and co-produce for the Chinese market. We are looking at the possibility of launching a pay-TV channel in China. We are going to dedicate a lot of time and effort this year to penetrating the Chinese market and obtaining an important position there. We have the capacity and the talent to offer something completely different from what is currently being offered in the Chinese market.

WS: How has your experience been in Spain? You have a stake in the national commercial broadcaster La Sexta.

BASTÓN:  La Sexta is ahead of what we had projected in terms of audience share and is on track with what we had projected on the business side. With regards to programming, there are no Televisa programs on La Sexta—we sell our product to Antena 3, TVE and to the autonomous regional channels. However, La Sexta differentiates itself from the rest of the programming available in the Spanish market. It appeals to an audience that is attractive to advertisers, and this is the reason for La Sexta’s success. [Its programming] is very creative in its newscasts and very original in its entertainment programs. This has made La Sexta an innovative alternative in the Spanish market. Our investment is starting to yield the results we are looking for in the long term. Offering the FIFA World Cup and now basketball and the deal we made with [the football team] Real Madrid have no doubt helped the channel stand out in a market that has been offering the same thing for many years.

WS: What challenges do Televisa’s TV operations face?

BASTÓN: Among the most important priorities for my team and me is to maintain our leadership position in the free-TV market in Mexico. One of the challenges that we have set for ourselves in 2007 is to break into new markets, and one of the most important ones is China. We are also working very hard in Russia and in other European countries. We also must develop strategies and content for new distribution platforms. Product that can be distributed via the Internet can also be distributed on cell phones or portable devices. Televisa is working hard in this area and it’s a priority for the group. At the end of the day, we want to establish new businesses to help our company grow. We want to diversify into new markets we haven’t been in and maintain an important presence in those businesses we currently are in.

WS: In this new “wherever, whenever” landscape, what role will advertising play?

BASTÓN: I believe there are different ways of exploiting advertising in this scenario. One of them is undoubtedly product placement inside programs, another could be inserting banners of products and, finally, there is virtual advertising. Nontraditional advertising is going to grow, but the commercial spot is not going to disappear because of [its ability to provide] a message completely focused on a product, and this message needs [TV exposure] to promote it. In this way the spot continues to have an important role in the business of television. I think various ideas will develop in which advertising will continue to be an extremely important part of any communications media.

WS: What is your vision for Televisa in the future?

BASTÓN: Televisa is extremely well positioned [to remain] the most important producer in the Hispanic world. I see it present in many markets where it is not present today, and having a leading role in the distribution of content on any existing platform, or any platform that will be around in 2010. In addition I see Televisa remaining a market leader in free TV and pay TV in Mexico, and also producing in other languages, including English for the U.S. market. We are working very hard to build these businesses as much as we can, without losing sight of our core business, which will continue to be free TV for many years. But we have already started to position ourselves in different distribution and promotion windows.

WS: What are your plans for the U.S. Hispanic market?

BASTÓN: We have been working on this for quite some time. I can’t say more at this time, except that we have been working very hard for two years, and I feel and hope that our efforts will start to bear fruit this year. But everything happens in its own time.