Exclusive Interview: Univision’s Randy Falco

February 24, 2012 World Screen Top Stories
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PREMIUM: Randy Falco, the president and CEO of Univision Communications—which includes the broadcast network, cable channels, online and mobile businesses and a production studio—talks about his company’s very unique relationship with the Hispanic community.

Univision is not only the leading Spanish-language network in the U.S., its ratings are so high that it regularly competes with the main broadcast networks. With a programming mix of telenovelas, variety shows, news and sports, Univision is also the perfect vehicle for advertisers trying to reach Hispanics, the fastest-growing segment of the U.S. population.

 

WS: What have been some of Univision’s programming strengths?
FALCO: Univision Network today competes against ABC, NBC, CBS and FOX and on many nights outperforms one or more of these networks. Univision’s programming leadership is a result of our commitment to deliver the best quality products to Hispanic audiences in the U.S. and our ratings success speaks to this continued drive to innovate and serve our audiences.
 
WS: According to the 2010 Census, there are more than 50 million Hispanics in the U.S., 43 percent more than in the year 2000. How attractive are these numbers for your advertisers?
FALCO: The 2010 Census was a tipping point that highlighted what we already knew, that to drive growth you had to invest in Hispanics. For many advertisers, Hispanic consumers (and Univision) represent an untapped growth potential, which is why we have activated more than 200 brands in the past 18 months.
 
WS: What factors have contributed to the Univision news division’s high ratings and reputation?
FALCO: Univision’s unique understanding of, and relationship with, the Hispanic community is a testament to our commitment to empowering, entertaining and informing this diverse segment of the U.S. population. Through our news programs and diversified media platforms we deliver vital information to our viewers, which in some instances, such as emergencies and natural disasters, has saved lives. We remain committed to our mission of public service and as such continue to invest in expanding our news offerings, most recently launching new investigative and documentary units and delivering breaking news and in-depth coverage across platforms.
 
WS: What has been Univision Studios’ production strategy? Are there plans to create a distribution arm for these productions?
FALCO: Our programming strategy, which allows us to tap into the best content from our exclusive partnerships with the leading Spanish-language providers in the world, such as Televisa, [as well as developing] our in-house production capabilities, is critical to our long-term approach. [We have been able to] build an extensive library of hits such as Mira Quien Baila, developed in partnership with Endemol; Eva Luna, co-produced with Venevision, and Nuestra Belleza Latina. We are currently in production on our prime-time novela El Talisman, and continue to work with third parties to make our content available globally through various distribution arrangements.
 
WS: What unique opportunities does Univision offer advertisers on television and online? How is Univision attracting advertisers that traditionally only invest in English-speaking networks?
FALCO: At Univision we are industry experts on the Hispanic consumer. We have the largest reach and an unparalleled connection that we have built with our audience over the last 50 years—that makes us a preferred partner [for advertisers]. Recognizing the power of Hispanic consumers, with Hispanic sales outpacing non-Hispanic, we are increasingly seeing marketers shift share to Spanish-language media from our English-language competitors.
 
WS: Univision.com has approximately 27 million visits per month. What type of content does your audience look for?
FALCO: There is a huge demand for quality Spanish-language content on interactive platforms. As the digital leader in serving Hispanics, we are spearheading the efforts to make great, high-quality content available to this growing audience across all platforms. What solidifies our position is our two-prong approach, which offers users our robust original Spanish-language content—web novelas, music sessions, exclusive videos, and fan interactions—and leverages strategic partnerships with Televisa, VEVO, CNET, NFL, NBA and many others. This approach allows us to provide our users with the relevant content they seek.
 
WS: Univision also provides content to VOD platforms, as well as Hulu and Hulu Plus. Are there any plans to close deals with other platforms like Netflix?
FALCO: Our goal is to meet the needs of our audiences across media platforms and make the programming they love available wherever and whenever. We are in discussions with all providers to make our highly popular content available across platforms. The demand for Univision’s content is tremendous. Unlike other networks, we have a very broad and deep portfolio of rights that have never been syndicated after the initial broadcast on our networks. We are confident that once viewers are able to experience the flexibility that will enable them to view our content on an on-demand, device-neutral basis, they will quickly appreciate the value proposition and want more.
 
WS: What opportunities do you see with the TV Everywhere model?
FALCO: We are currently preparing our TV Everywhere offering. It will be a one-stop shop for all Univision media and we plan to make it available to all of our distribution partners during the first half of 2012. The ability to reach engaged consumers while they are outside of the home and physically able to visit a point of sale or receive a highly targeted offering, and the connectivity of video consumption with social media, are just a few examples of the compelling new opportunities for advertisers.
 
WS: Second generation bilingual Hispanics are a growing force in the U.S. What programming are you offering this audience segment?
FALCO: The most effective way to reach Hispanics is “in culture.” More than Spanish fluency, more than English fluency, cultural fluency is what is relevant. Latinos crave aspects of their culture—food, holidays, music, media and content—that reflect their roots, community, values and aspirations. The culturally relevant content that exists in Spanish media—and is not readily available in English—satisfies “the appetite” for Hispanic culture. We also know that 75 percent of all Hispanics speak Spanish at home. Interestingly, our strongest demographic performance is among 18- to 34-year-olds. Certainly, a growing number of this segment is bilingual, yet according to the Nielsen ratings, they are choosing to seek out and watch Univision. We see this as an on-going opportunity with the potential for sustained growth. Forty-two of the top 50 shows among Hispanic bilingual audiences are on Univision.
 
WS: How important is the company’s social and educational role within the U.S. Hispanic community?
FALCO: At Univision, across the organization, it really is about job number one, serving the community. That is why our education initiative, Es el momento, and the seven-day roadblock we recently hosted across our media platforms to focus on this important topic, is critical to continue to empower the community we serve. Univision’s unique understanding of, and relationship with, the Hispanic community is a testament to our commitment to empowering, informing and entertaining this diverse segment of the U.S. population and is a priority for us. During our 50-year legacy of serving Hispanics in this country we have created award-winning programs and initiatives that address the issues and challenges faced by Hispanics, including Peabody-award winning programs Health is Life and Voter Education (from citizenship education, to voter registration, to voter turnout). In 2010 we launched Es El Momento, a multiplatform, multi-million-dollar three-year national education initiative, which aims to improve academic achievement among K-12 Hispanic students with a specific focus on increasing rates of high school graduation, college readiness, college completion and engaging Hispanic parents and the broader community in these efforts.
 
WS: Grupo Televisa’s investment in Univision Communications in 2010 extended the programming licensing agreement between both companies. In what areas has Univision benefitted from this investment?
FALCO: The agreement with Televisa brought significant upside because of the broader rights received with the agreement. It allows us to secure the world’s best Spanish-language programming with the expanded programming licensing agreement and provides advertisers, distributors and Univision’s television station group affiliates with new opportunities. It also, for the first time in the U.S., unlocks the potential of Televisa’s content across digital platforms, opening up new prospective exploitation opportunities.
 
WS: What opportunities and challenges do you see for the company in 2012?
FALCO: We see strong opportunities in 2012 as marketers and distributors continue to see the potential of investing in the Hispanic opportunity. This will be evident as we launch new cable networks and expand our digital offering. Just like every other business in the U.S. we are monitoring the economy closely and will be strategic, smart and prudent in any investments and expansion.