Exclusive Interview: Adriana & Gustavo Cisneros

PREMIUM: Adriana and Gustavo Cisneros, who will be honored at NATPE with a Brandon Tartikoff Legacy Award, talk to World Screen about their vision for a family business in this ever-changing media landscape.

WS: As technology continues to change the business, what core values must Cisneros continue to represent?
GUSTAVO: Of course, the entertainment industry has always been an extremely dynamic sector, which evolves at the same rate as new technologies arise and change in harmony with new social habits and cultural tendencies. This is why being capable of adapting to this is the key to continuing to be valid and successful in the media.

Nevertheless, globalization and the penetration of digital media have truly revolutionized the industry, which has totally transformed the way of creating and consuming television. In Cisneros’ case, Adriana’s vision both during her time as Director of Strategy and now as CEO, has definitely been fundamental and has allowed the Group to jump on the wave of change at just the right time in a solid way using a well-focused business strategy.

Today, Cisneros is a very innovative company which is in tune with new industry trends while continuing to preserve the values which have characterized us for more than eight decades: valuing our people, the spirit of continued diversification and evolution and of course the passion for doing things well.

WS: What particular challenges does a family business pose, compared to non-family businesses?
GUSTAVO: While the majority of companies in Latin America begin as family businesses, statistics show us that only 6 percent of brands survive long enough to be managed by the founder’s grandchildren. I think this is definitely one of the biggest challenges faced: to achieve sufficient maturity and structure to be able to successfully hand down to younger generations.

In this sense, I think there are some fundamental survival factors for family businesses which range from knowing how to transmit the meaning and responsibility of leading a family company to the next generation; being able to identify the right person to hand over to—someone with enough fire to continue the legacy—or to realize that if the ideal person does not exist, it is possible to take a step back and allow professionals to take over, allowing the family to act as proprietors; and finally, being capable of carrying out an orderly, well planned transition based on a natural process.

WS: Besides programming for the traditional TV screen, what content are you creating for other screens and devices?
ADRIANA: For a long time now, we have been watching the divide between the various platforms become increasingly smaller. Audiences are demanding more complementary multiplatform content that gives them a greater and improved experience. This is why for the last five years we have been working on a 360-degree strategy for our free-to-air and pay-TV channels. We are convinced the communication industry is no longer a “traditional” industry nor does it make sense to have a digital department anymore—all is digital. This is why we have now fully entered the digital era by applying an aggressive strategy, which systematically uses digital tools.

Since 2010, our programming has been accompanied by Digital Extensions. Each new Cisneros Media format has a digital producer in charge of designing content to complement our platform range. This way, we can provide our clients with comprehensive solutions and truly comprehensive content, which captures audiences through multiple platforms; and offer our viewers a comprehensive selection of content with a continuous story line.

Similarly, we seek to satisfy the need for new content within a context where differences in licensing, television channels, OTT systems, etcetera, are disappearing, making it necessary to offer content through new value-added technologies and platforms. For example, through an agreement with RRsat, we now have a new platform which gives us the opportunity to distribute our content around the world, launch new channels, greatly expand our scope and deliver programming to our Pay TV clients via a secure and reliable satellite signal. We have also signed an agreement with Azteca and AfricaXP to launch Romanza+Africa, a channel aimed at English speaking audiences on the African continent, which offers non-linear programming so that clients can view full program content whenever they like. At Cisneros, we are working to offer both complete content and value-added platforms to our clients.

WS: What are you learning about how your audiences want to engage with your programming?
ADRIANA: Since I began working at Cisneros, I was always very clear about the need for getting the most content to the most viewers. The current market is characterized by content saturation. Viewers seek greater personalization, which allows them to quickly and easily access formats and platforms that are tailored to their interests and habits.

We have been experiencing increasingly improved synergy between our communications and digital divisions. Our productions are currently very successful, largely because we experience in combining our content development with innovations created at Cisneros Interactive.

Proof of this is the success of our social media channels. We have more than 9 million Facebook fans, more than 8 million Twitter followers, more than 200,000 Instagram followers and more than 800,000 subscribers on YouTube, where we are one of the most important Spanish-language programming partners.

Similarly, we have been able to understand our audiences’ need for more segmented content. For example, at Cisneros Media we are transforming the way we produce soap operas (our most characteristic genre) to offer products to a much more specific market: In Venezuela’s case, we are more focused on traditional soap operas, while in the U.S. we are trying to cater to a younger audience and have introduced the concept of a teleseries, or a hybrid between a TV series and a novella. The teleseries, is a much more dynamic format and is made up of 60 chapters, in which each episode is relevant events.

WS: In which new markets has Cisneros Media been finding new distribution opportunities?
ADRIANA: Content currently produced and distributed by Cisneros reaches 550 million viewers in 100 countries. Our main focus is concentrated on Latin America and the U.S. Hispanic market.

We have recently seen huge opportunities arise in markets such as Africa. More than a decade ago, we entered into the African market by broadcasting La Mujer de mi Vida in Kenya. It was immediately clear Latin American soap operas were popular in Kenya and this led us to add new titles each year. Nevertheless, with digital migration of the industry becoming consolidated, as well as the continent’s land mass and population density, this market is increasingly more enticing. This has inspired us to strengthen our strategic focus on this region by launching Romanza+Africa through Cisneros Media Distribution, which makes us one of the major distributors of English- language soap operas in the region.

WS: How have you been diversifying the content you are offering international markets?
ADRIANA: It is clear to us at Cisneros that we produce and distribute content for global audiences. This focus guides us and we work to constantly create new production screens and spaces with this in mind.

This is why at Cisneros Media we have challenged ourselves to increase the quality of our productions on a daily basis in order to reach new markets. Using a 360-degree strategy, we produce high quality content that is currently dubbed into more than 20 languages.

So far this year, several of our most important productions have premiered around the world, for example: Los Secretos de Lucía, our first teleserie has been very successful in Venezuela, Spain, Canada, Ecuador, Honduras, Mexico, Nicaragua and the Dominican Republic, as well as being available pan-regionally around Latin America through Netflix. Cosita Linda, in Venezuela, Nicaragua and Ecuador; Alma Indomable, in Venezuela and Mexico; Corazón Esmeralda, in Venezuela, Ecuador, among other countries.

WS: How are you increasing your presence in the U.S. Hispanic market?
ADRIANA: Our knowledge of the Latin American market has been a competitive advantage for developing content for the U.S. Hispanic market, nevertheless consumption habits vary mainly due to differences in purchasing power and the tendency towards bilingualism. For this reason, we have strengthened our strategy by signing various collaborative agreements.

In January of 2014, we formed a strategic partnerships with Bobby Friedman, a media veteran and founder of Bungalow Media + Entertainment to develop series and content produced in both English and Spanish for Latin audiences; as well as to identify and channel strategic relations within Cisneros, its advertisers and partners involved in developing brand content.

Similarly, together with Part Time Hero Productions and Bungalow Media + Entertainment, Cisneros Media will develop American Girl Trapped on a Telenovela aimed at the U.S. general market. The Hispanic market is growing stronger in the U.S. Forecasts show it may come to represent 30 percent of the population. It is definitely a key market for Cisneros.

WS: Tell us about your plans to produce in English.
ADRIANA: We know the U.S. Hispanic audience has transformed in recent years. Alongside this, consumption habits, including the way we view television, have also changed. In addition to content in Spanish, Hispanic people currently seek out English formats that still tie them to their cultural roots while also enjoying mainstream content.

This is why we have started to develop formats, which reflect the new television viewing habits of Hispanic families and U.S. general market audiences by developing content such as American Girl. This format will be a Cisneros Media production in conjunction with Part Time Hero Productions and Bungalow Media + Entertainment. It is an English- language soap opera with a Latin flavor through that we hope to achieve two main objectives: bringing the drama genre to a new level by adding a touch of comedy; and creating a product which is attractive to both the U.S. general market and Hispanic communities in the U.S.

In this same vein, during April we launched Romanza+Africa, a premiere soap opera channel with more than 3 thousand hours of programming in English with broadcasts focused on countries such as South Africa, Kenya, Tanzania, Uganda, Zambia, Zimbabwe, Ghana and Nigeria during the first phase; as well as working with promising markets such as Botswana, Malawi, Namibia, Rwanda, Mauricio Republic and Seychelles.

Similarly, through our agreement with Bungalow Media + Entertainment, we are currently working on a plan to distribute content created by important U.S. networks.

WS: Tell us about the co-production with Univision for Ruta 35, La válvula de escape?
ADRIANA: Ruta 35, Válvula de Escape is one of our big projects for 2015. It is a joint production between Cisneros Media and Univision Communications Inc with producer Cristina Palacio. Recording started in September.

Ruta 35 stands out not only thanks to its impressive casting (including actors such as Zeus Mendoza, Julio Bracho, Osvaldo Benavides and Dana García) but also thanks to its impeccable direction and its tele-series format which was mostly recorded in outdoor locations using hidden camera techniques and visual effects which seek to hook the viewer even more.

WS: Tell us about developments at the online advertising network, RedMas.
ADRIANA: One of our main projects in recent years has been the creation of Cisneros Interactive: our digital media, digital advertising and e-commerce division. In less than three years, this business unit has managed to become one of the main players in the region’s digital industry through acquisitions, which are then grown with the 0rganization’s support.

In Digital advertising, Cisneros Interactive owns RedMas, online advertising companies with 133 million unique users per month in the U.S. and Latin America; and Adsmovil, the leading mobile advertising network in these two markets. Through RedMas, we have been able to provide digital advertising solutions in In-Text, In-Image and related tag formats; as well as through traditional formats such as display banners and video commercials. We also help clients and agencies to enter the media programming purchasing area and use a database to improve audience segmentation.

Adsmovil is offering innovative solutions in mobile advertising. It recently received a Smarties award for its publicity campaign advertising SBP insecticide in Brazil, which included a series of geolocalization, geo-referencing activities as well as and behaviors targeting techniques to position its product. Through Adsmovil, it also signed a strategic alliance with Celtra (HTML5 multiscreen technology provider for publicity on smartphones, tablets and computers) in August, which has allowed us to access AdCreator4, a tool used to implement “rich media” and “multi-screen” campaigns. We are now able to create more attractive advertisements for consumers on the various types of digital screen.

WS: How have Adsmovil and RedMas been increasing their presence in various markets?
ADRIANA: RedMás and Adsmovil are now emblematic companies in Cisneros’ digital business division and they experienced much growth in recent years. They have managed to launch new products and services in the Latin American markets and the Hispanic segment of the U.S.

RedMas currently has offices in the U.S., Argentina, Mexico, Colombia, Venezuela, Chile and Peru; as well as commercial representatives in Uruguay, Dominican Republic, Ecuador, Costa Rica, Panama, El Salvador, Honduras, Guatemala, Nicaragua and Belize. Our network now has 20 thousand affiliated publishers as well as sales rights for Yahoo!, and eHow en español n several Latin American countries.

Adsmovil has become the mobile advertising network with the largest scope in Latin America and the Hispanic segment of the U.S. With penetration of 48 percent amongst mobile users in the US Hispanic segment, it is now the top Latin network according to comScore.

While we made great progress with these two companies, in 2015, they will serve as launch platforms for many more exciting initiatives. RedMas will be the first network to offer a premium Native Ad product via a collaboration with Native.Ad, a company from Spain in which we recently invested, a premium video network also in collaboration with another company we invested in, and is spinning off the first Audio Ad network in the region. Adsmovil is innovating in the programmatic ad mobile space, launching the first US Hispanic mobile exchange, and developing its own Demand Side Platform (DSP) later in the year.

WS: In which business areas are you seeing the most potential for growth?
ADRIANA: I think Cisneros currently has three main business lines with great potential. In terms of media and entertainment, we are placing a lot of emphasis on expanding into new markets and screens as well as strengthening our presence in Latin America and the U.S. Hispanic market.

With Cisneros Interactive we aim to become the top player in these markets and we have put into place an aggressive expansion plan based on four strategic pillars: supporting our enterprising staff; focusing on innovation within the ever-evolving and fluctuating world of digital advertising; establishing strategic alliances in the region with world class international companies, as well as synergies with Cisneros Media and support from the group to grow our digital businesses.

Finally, at Cisneros Real Estate we are facing big changes ahead, particularly in the area of sustainable development, which is a current trend around the world. Prior to restructuring, we thoroughly analyzed current and future trends of each of these business areas and we are fully convinced of their potential.

WS: It’s been a year since you were named CEO. How have you restructured the company to better respond to the ever-changing media landscape?
ADRIANA: One of my biggest goals when I became CEO was to create a modern and efficient structure, which concentrated on the main business lines and allowed us to, among other things, continue to be leaders in content development and new formats, set trends in the digital and e-commerce worlds; and support our real estate development division.

I think we have achieved this: we created Cisneros Media, Cisneros Interactive and Cisneros Real Estate and we now have a dynamic, experienced and extremely talented management team whose leadership has meant Cisneros has experienced a period of high potential both in terms of expansion into new markets and in terms of diversifying its business lines.

WS: How is the Cisneros Foundation continuing to advance education, empowerment and sustainability?
GUSTAVO: Our Corporate Social Responsibility (CSR) initiatives are another great example of Cisneros’ ability to evolve and identify opportunities to generate positive social impact.

Adriana has infused her vision of social responsibility at the core of our business strategies; she formalized our CSR business unit, led by Maria Ignacia Arcaya, and thus helped to develop programs that are meaningful to the communities we work and serve in, our employees and our businesses units. The Fundacion Cisneros has also evolved under Adrian’s leadership. One of our most robust efforts which illustrates this model is the “Somos lo Que Queremos” campaign, which promotes positive co-existence values, personal growth and contributions to society. This campaign, which goes beyond television by engaging users through social media, has counted on over ninety TV hosts, news anchors and actors as spokespeople, and has reached a nationwide audience for more than four years. The campaign has received international recognition, with an honorable mention award from PR News in the United States for best video initiative, as well as the award for one of the best CSR initiatives by the Fundación Corresponsables in Spain.

Similarly, Miss Venezuela has become a platform through which social causes are given visibility and young Venezuelan women become aware of the impact that their actions can have as beauty queens through volunteer work and communications campaigns that they identify with and commit to. Throughout the past years, the Miss Venezuela Organization has partnered and collaborated with local NGOs as well as international organizations such as Caritas International, Goodwill, Operation Smile, Techo, Somos Ayuda and UNICEF, raising awareness on issues ranging from eliminating poverty, inclusion of people with disabilities and preventing breast cancer. During the last Miss Venezuela pageant, a campaign to eliminate violence against women was launched, becoming worldwide trending topic on Twitter with its hashtag #UnaVidaLibreDeViolencia.

One of the most recent business units that has been created, Cisneros Real Estate, has on its part integrated the vision of sustainability and creating shared value in its business principles and mission. Cisneros Real Estate manages and develops innovative and responsible real estate and tourism properties through long-term relationships with partners with similar values and seeks to engage with and empower the local communities where it operates. Tropicalia, located on the Northeast coast of the Dominican Republic, is developed under these principles and is an example of sustainable development through its selection of business partners and its work in the Municipality of Miches where Fundacion Tropicalia implements programs in the areas of education, productivity, environment and culture and wellbeing.

Lastly, although education is also at the center of many of our businesses’ CSR initiatives, including programs for women entrepreneurs and young leaders from Venezuela, Fundacion Cisneros continues to represent our long term commitment to improving the quality of education in Latin America through online teacher training. This program, which was developed over 15 years ago, evolves continuously as new technology becomes available and content requirements are updated. Most recently, we joined Tu Clase, Tu País, a social enterprise that provides an online platform for teacher training to local partners throughout the region, such as the Ministries of Education of Chile and Uruguay.

WS: In which ways do you continue to collaborate with your father?
ADRIANA: My father has always been a close friend and advisor, someone who shares with me his vision of thinking big and looking towards the future, of designing aggressive and long-term strategies. In this sense, he continues to be the ideal person with whom I exchange ideas and seek out the voice of experience and business knowledge.

WS: As chairman, in what ways are you still involved in the company’s operations?
GUSTAVO: At the moment, most of my efforts are focused on promoting the region at the global level, however in my role as Chairman of the Group, I continue to work with Adriana in an advisory role to develop the Group’s expansion strategies.

WS: Are you already thinking of how you can prepare the fourth generation—your grandchildren—to lead the company?
GUSTAVO: It might seem a little soon to talk about “preparing” but what I do consider happens naturally is instilling courage, history, and respect for and love of this legacy, which has been built over three generations. My grandchildren have grown up in an environment where both the company and its Corporate Social Responsibility programs promoting culture and art are a fundamental part of what we are as a family. For this reason, I trust that at least one of them will cultivate themselves in this area and will wish to continue the family legacy.