Exclusive Interview: Grupo Salinas’s Ricardo B. Salinas Pliego

September 26, 2012 World Screen Top Stories
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PREMIUM: In this exclusive interview, Ricardo B. Salinas Pliego, the founder and chairman of the board of Grupo Salinas, shares with World Screen his vision for his company.

 

WS: Despite the global economic downturn that has also affected Mexico, Azteca has posted positive financial results. What factors have contributed to these results?
SALINAS: We’ve made some important investments in our programming in recent years. Inaugurating seven new Azteca Novelas studios during the summer aligns with this vision. These new digital studios are undoubtedly the most technologically advanced in Latin America. That’s on the technological side, but the most important thing is boosting people and their creativity.
 
WS: Of the main mass media outlets: television, newspapers, magazines, radio and billboards, what place does television occupy in Mexico? What is the advertising forecast in Mexico for this year?
SALINAS: The advertising market for free TV represents about $3 billion annually, which equals more than 60 percent of ad spend in Mexico. Radio is a little over 10 percent and it’s very fragmented geographically. The rest of the media is smaller and less significant. Advertising in free TV grows at the same pace as GDP, but for 2012 we expect greater growth due to the Olympic Games broadcasts.
 
WS: Azteca is recognized worldwide as a producer of quality novelas. Recently, however, the company has focused on series with high production values. How has this business evolved for the company?
SALINAS: We’re always looking to bring innovation to our screens. Although novelas continue to be important for us in prime time, we’ve invested a notable effort in the production of series. We’re strong in sports, news and entertainment and we’ve recently launched new comedy formats that can probably garner very interesting results.
 
WS: You mentioned the inauguration of Azteca Novelas’ new studios. What are the benefits of this investment and what does it represent for Azteca?
SALINAS: The immediate benefits include the quality and efficiency of our novela productions. The new studios can give our productions the appearance of being on location with the financial and logistic benefits of being at a studio. The message with the studios is that “we’re here to compete for the long run.”
 
WS: Increasingly, viewers around the world want to watch programming whenever and wherever. Azteca has signed content-distribution deals with Netflix and Azteca América has a deal with Hulu Latino. How important is it to reach viewers through new media?
SALINAS: A big reason for the change from TV Azteca to Azteca two years ago is the evolution of the industry. We hope to have many more years of broadcast television, but we always have to consider new technology for its ability to attract viewers. Luckily, as content providers, we have the flexibility to move within different media with agility. We’re always looking for deals to deliver our content to new audiences. Internet options are important, as well as programs that can be delivered to smartphone screens.
 
WS: After the 2010 U.S. Census results were made public, major media companies began to announce new channel rollouts for the U.S. Hispanic market. What are your plans for Azteca América?
SALINAS: We’re working hard at Azteca América to continue expanding our network and delivering the most compelling programming for our audience. Last year, we migrated to full power stations in Dallas, Houston and San Francisco, an important step in terms of our channel coverage. This year our feed will be in HD. The other challenge is delivering content that speaks directly to the Hispanic viewer in the U.S. Although more than 60 percent of the 50 million Latinos [in the U.S.] are of Mexican descent, their everyday lives are very different from what we experience in Mexico.
 
WS: Azteca has been a strong promoter of social issues, not only in Mexico but also internationally. What is television’s social responsibility given the violence that has plagued Mexico in recent years?
SALINAS: Our social action is channeled through Fundación Azteca, although we do have other social and cultural programs. We’re aware of the responsibility involved in being a broadcaster, especially in a country like Mexico, where, unfortunately, there are few readers. We focus on health, education and environmental programs looking to attract a high level of participation from society. Such is the case with programs like Limpiemos nuestro México, in which more than 6 million people took part in 2012, or Esperanza Azteca, where we instill values through music. We have more than 50 youth orchestras throughout the country with more than 12,000 participating kids.
 
WS: Grupo Salinas’ businesses originated last century with your great-grandfather, Benjamín Salinas Westrup. What can you tell us about your experience leading the family business?
SALINAS: I think our businesses’ success throughout the years has been a result of being flexible and innovative. My family started in the business with a bed factory and then went into retail. Elektra started out in the ’50s with cutting-edge products like TV sets and radios. Then came the television network, telecommunications, Internet, fiber optics and financial services for those that were underserved by traditional institutions.
 
WS: What’s the best advice your father gave you that you still practice today?
SALINAS: Knowing your client and serving him with excellence was one of my grandfather’s values, inculcated in me by my father. It sounds simple, but it’s amazing to see how many companies become overly bureaucratic and lose their way as they grow.
 
WS: Azteca is about to celebrate its 20th anniversary. What are some of the company’s major accomplishments?
SALINAS: I think that throughout our history, we’ve distinguished ourselves as a world-class broadcaster that competes head on in every genre. We’re young, with a fighting spirit that keeps us on the cutting edge and in the creation of successful content.