Univision, Televisa Head to Court

LOS ANGELES, January 6:
The long-running legal battle between dominant U.S. Hispanic broadcaster
Univision and its key content supplier, Mexican media giant Televisa, headed to
federal court in Los Angeles today.

The legal tussle has been
ongoing since 2005, when Televisa filed a lawsuit against Univision for breach
of contact, alleging the non-payment of more than $100 million in royalty fees.
In the trial that begins today, Televisa is seeking the termination of the
25-year contract, which sees it providing its novelas to Univision exclusively
through 2017. The Mexican media group is also asking for the $100-million-plus
in unpaid royalties.

Analysts note that a
ruling in Televisa's favor would be highly damaging for Univision. Reports
indicate that Televisa's novelas provide more than 30 percent of Univision's ad
revenues.

—By Mansha Daswani