TelevisaUnivision’s Pierluigi Gazzolo

In early 2021, TelevisaUnivision appointed Pierluigi Gazzolo as its president and chief transformation officer. Gazzolo brought with him extensive experience in the media industry, having led ViacomCBS’s operations in Latin America for nearly 30 years. One year later, on March 31, 2022, TelevisaUnivision rolled out ViX, its free AVOD service. ViX primarily consists of Televisa’s extensive library and was launched in the U.S., Mexico and select Latin American countries. Four months later, the company introduced ViX’s premium SVOD tier, which offers a diverse range of original productions, a vast selection of sports content and access to Televisa’s classic library of novelas, all available for a subscription fee. TelevisaUnivision has since acquired Pantaya, a leading streaming platform for Spanish-language movies and series, bringing thousands of hours of content to ViX’s premium-level offerings. In January of this year, Gazzolo was promoted to CEO of ViX. To date, the company has established numerous co-production agreements and secured partnerships with creators to produce exclusive Spanish-language content. Meanwhile, ViX is rapidly expanding in the region, making significant progress and establishing itself as the destination for Spanish-speaking audiences. Gazzolo talks to World Screen about the streaming service’s performance, notable milestones, the importance of Televisa’s library, exclusive agreements with creators and co-productions.

WS: How has the platform performed since launch?
GAZZOLO: Our company has experienced significant growth, with increased sales playing a major role in our expansion. We have achieved considerable scale, attracting over 20 million users across various platforms. This user base continues to grow steadily.

The growth can be attributed to different factors, namely the experiences offered by both the free and paid versions of ViX. The exclusive content available from TelevisaUnivision’s extensive library has been a significant attraction for a wide audience. To provide some context in terms of competition within the free long-form streaming space, we stand out as the sole platform that possesses most of the exclusive Spanish-language content. This includes iconic productions such as La familia P. Luche and La rosa de Guadalupe and classic telenovelas like Marimar. This exclusive content has played a crucial role in attracting and retaining users to our platform.

Another differentiating factor is our production of original content exclusively for ViX. We have introduced a 24-hour news channel, specifically created for the platform. When combined, our original content and the news channel account for 78 percent of ViX’s total consumption.

Additionally, while we do purchase content, our own productions have shown a higher level of audience engagement. This is another aspect that sets us apart from competitors in the market.

In the case of the ViX premium tier, our original productions have garnered significant interest from viewers. As a new platform, it was challenging to predict how users would respond to our content, so I am particularly thrilled with the positive reception. For instance, the launch of María Félix in July of last year continues to attract new subscribers. The same can be said for other original series like Mujeres asesinas, De viaje con los Derbez and, more recently, Montecristo. These original productions have played a vital role in driving subscription growth.

In addition to our original content, we have secured exclusive rights to matches from the Mexican soccer league. This offering has further contributed to subscriber retention, as viewers value the opportunity to watch these matches exclusively on our platform.

WS: How do the two services complement each other?
GAZZOLO: The strategy behind the ViX premium tier is to provide a 100 percent complementary experience to the free service. We offer a total of 40,000 hours of content, and the premium level adds an additional 10,000 hours. This includes exclusive original content and an additional 7,000 hours of exclusive soccer matches. If you upgrade from the free service to the premium service, you can seamlessly continue enjoying ViX content without any advertisements.

We have received two significant awards. Firstly, we were honored with the Apple TV app of the year award on a global scale, making us the first Hispanic app to achieve this recognition. Additionally, we were recognized as the best app by Google Play in Mexico. These accolades demonstrate the quality and impact of our platform in both the global and local contexts.

WS: How have you leveraged being a platform that emerged from two media powerhouses with a long-standing focus on the Hispanic audience?
GAZZOLO: We launched our platform during a highly competitive period, with Netflix being the first to enter the market, followed by around 40 other streaming services. However, what has truly set us apart is our differentiating factor: We believe we are the leading producer of Spanish-language content globally. In fact, this year alone, we have produced approximately 50,000 hours of Spanish content. Our library boasts the largest collection of significant productions, and in terms of content volume, we are the largest producer, even when compared to companies outside of the Spanish-language space.

Our greatest differentiating factor is our unwavering focus on the Spanish language. We are committed to producing high-quality content in Spanish, acknowledging the diverse cultures within the Spanish-speaking world and effectively engaging audiences with premium Spanish-language content. While other platforms also produce content in Spanish, their percentage of Spanish-language offerings is relatively low. In contrast, most of our content, excluding movies acquired from studios, is produced in Spanish. In fact, 98 percent of our content caters specifically to Spanish-speaking audiences, created by individuals who not only speak the language fluently but also possess a deep understanding of Spanish-language culture. This has been our promise, and thus far, it has proven successful for us.

Being the two largest television media companies in the U.S. has played a significant role in our success. We possess substantial promotional power that enables us to effectively promote ViX in both Mexico and the U.S., where we reach over 60 percent of the television audience.

Owning Televisa and Univision is advantageous for running ViX, particularly due to the importance of the Spanish-speaking markets. The Hispanic market’s purchasing power is substantial, and if you consider the entire Spanish-speaking population in the U.S. as a separate country, it would rank as the world’s fifth-largest. Additionally, the Mexican market holds the highest population within the Spanish-speaking world. Consequently, these two territories are key factors for success in the Spanish-language content market. With the ownership of these assets, we are strategically positioned to excel in this market.

WS: How do you decide what content is offered on ViX and what will be available behind the paywall?
GAZZOLO: The parameters are straightforward. On ViX, you can access a constantly refreshed library of content with advertising, along with free episode samples of what you can expect from the premium service. The main difference between the two services lies in the presence or absence of advertising, as well as the availability of more classic content in ViX’s library. While we also produce original content for ViX, it is more aligned with traditional free-TV experiences.

The most significant differentiating factor between the two services is the inclusion of sports content or exclusive games. On the free service, only one game per league is accessible, while the remaining games can be watched on the paid service. However, it should be noted that the gap between the two services is closing as we invest in original productions.

WS: How important is offering live sports on a streaming service?
GAZZOLO: Sports content plays a crucial role in driving subscriptions, accounting for a significant percentage of our user base. In Mexico, for example, we offered exclusive streaming of the World Cup, which resulted in a significant influx of new users. Many people initially subscribed to the free service and eventually upgraded to the paid service. This particular month marked the highest number of registrations since the platform’s launch.

It’s important to note that accessing team-specific content may require transitioning to streaming platforms. While some games may still be available on free TV, we are actively working to educate and encourage fans to seek out their favorite team’s content on streaming platforms. By raising awareness and providing a seamless streaming experience, we aim to help fans adapt to this evolving media landscape and find their desired sports content through our platform.

WS: How has the acquisition of Pantaya helped ViX’s expansion?
GAZZOLO: It has been incredibly beneficial to us. The acquisition granted us the rights to the original series Montecristo. While we already held the rights for Latin America, we lacked the rights for the U.S. Pantaya granted us those rights. Additionally, our agreement with Pantaya led to the creation of De viaje con los Derbez, which has proven to be a resounding success at the ViX premium level. This show brought us a considerable number of subscriptions, and convincing free subscribers to upgrade to premium is no easy feat. It played a significant role in boosting our entry into the market.

WS: Tell us about the approach to co-productions and first-look partnerships.
GAZZOLO: One of the advantages we have is that we don’t need to be present in every market worldwide. Our focus is on Spanish-speaking countries, so having global rights is not necessary for us. In our industry, co-productions play a vital role because they allow us to collaborate with partners that can handle distribution in the remaining territories. A prime example of this is seen in Travesuras de la niña mala and La mujer del diablo, both ViX premium-level originals. Through a co-production and distribution agreement between TelevisaUnivision and Globo, these two series are available on Globoplay in Brazil, a territory where we don’t have to directly operate. The same strategy applies to Las Pelotaris 1926: The Mediapro Studio retained the rights for Europe, while we retained the rights for the U.S. Hispanic market. This approach benefits us in terms of cost and volume. Other companies, unlike us, operate globally and require global rights.

Regarding first-look deals, we have established collaborations with various individuals and companies, including María Dueñas, Eugenio Derbez’s 3Pas Studios and Salma Hayek’s Ventanarosa, among others. In terms of productions and co-productions, we have partnered with numerous companies such as Mediapro and Onza Américas, among others. Our goal is to increase our production capacity in our own studios at Televisa, where we have ample resources. However, we also need to continue prioritizing our channels. It’s important to note that our streaming service was not launched solely to offset losses in linear television, as is the case with many companies. This approach, known as ‘reskinning,’ does not apply to ViX. ViX is not a replacement or ‘reskinning’ of Univision or Las Estrellas; rather, it serves as a complementary platform. While we offer content from our channels, everything else we are doing with ViX is complementary in nature. Our channels are performing well, and our intention is not to replace them.

WS: How do you continue to manage budgets?
GAZZOLO: Firstly, it’s important to note that we own a significant portion of the content on ViX. We own the IP rights, and acquiring such a vast library of content comes at a considerable cost, totaling around 40,000 hours. Secondly, when it comes to our original productions, co-producing provides a distinct advantage. Not only does it help us maintain a consistent volume of content, but it also offers collaborative opportunities. Thirdly, despite the expenses associated with producing content in Latin America, we continue to see a return on our investment. The returns in Mexico, for instance, remain incredibly promising, and we also benefit from tax incentives in Colombia. We will continue creating high-quality content at an acceptable cost, which allows for expansion. Co-productions play a vital role in this strategy. At the L.A. Screenings, we presented many of our original series, such as Travesuras de la niña mala, Isla Brava, Montecristo, Volver a caer and La mujer del diablo, alongside Televisa’s novelas, including El amor invencible and Perdona nuestros pecados. As a result, we are selling these productions both as co-production originals or finished versions in markets where Spanish is not spoken.

WS: Are you continuing to pursue new IPs and close exclusive deals with creators?
GAZZOLO: Absolutely. We are actively seeking to collaborate with the most prominent Spanish-speaking creators in the industry. Our production volume continues to expand significantly. Notably, productions like María Félix and La mujer del diablo were created in Televisa’s San Ángel studios in Mexico. However, our primary focus is on nurturing and working with talented creatives, including renowned figures such as Mario Vargas Llosa. We have a wide range of productions in partnership with him. Additionally, mentioning Salma Hayek, we are excited to announce our film collaboration Quiero tu vida. Furthermore, we are working closely with María Dueñas, the author of El tiempo entre costuras, on a project called Los Artistas: Primeros Trazos.

The advantage of collaborating with these creators is that they understand our unwavering commitment to prioritizing productions in Spanish.

Our entry into the market with ViX was slightly delayed compared to other streaming services, but this situation works to our advantage. Take HBO, for example, which needs to heavily promote its most expensive product, primarily produced in English. In contrast, our focus is firmly on succeeding in the Spanish-speaking market. Creators and producers recognize and appreciate this approach.

Another relevant example is Santiago Limón, who is collaborating with us and Propagate Fuego on Pinches momias. He feels very comfortable working with us because he knows that we will prioritize his product. This aligns perfectly with our essence as a platform.

WS: What are the plans for further expansion?
GAZZOLO: We have successfully launched ViX in all Spanish-speaking markets throughout the Americas, including the U.S., Mexico, Central America, northern Latin America and the Southern Cone. During the initial year, our primary focus for investment and marketing efforts was directed toward the U.S., Mexico and Central America. While the ViX app is available in Latin America following an initial launch, our marketing efforts in that region were limited. However, we now have plans to enter the markets of Peru and Colombia with significant strength. Eventually, we will expand further into the Southern Cone. As for Spain, it is on our radar for future expansion, but not in the short-term.

WS: What are the opportunities and challenges for ViX over the next few years?
GAZZOLO: To be frank, the key factor determining our success or potential obstacles will be the content we offer. Our goal is to continually search for groundbreaking productions and produce enough captivating content to attract and retain subscribers. This is no easy task, but we have been performing well thus far. Despite the presence of numerous competitors and considerations regarding pricing, the ultimate deciding factor for people to subscribe is the quality of the content. This presents both a challenge and an opportunity for us. Thankfully, it has been an opportunity thus far, and we hope that it continues.