Mexico´s Supreme Court took a chainsaw to a law providing sweetheart
treatment for Televisa and TV Azteca. Both broadcasters, under legislation
passed last year, were granted automatic renewals of twenty-year television
licenses and digital television rights at no cost. In effect, they were granted
de facto ownership of the public airwaves in saecula saeculorum. Under several
preliminary rulings last week and this week those prerogatives have been resoundingly
overturned. Still pending is a ruling on the provision concerning foreign
ownership of Mexican radio and television outlets.
For purposes of this blog, the decision is of great
importance because the Mexican and U.S. Hispanic television markets are
inextricably linked. Televisa provides programming on an exclusive basis to
Univision, which is and will remain the market leader as long it airs Televisa-produced
telenovelas.
Telemundo, which is a distant second to Univision in ratings
and revenue, believes it must have a broadcast presence in Mexico in order
to effectively compete in the U.S. Hispanic market. The belief is
counter-intuitive
but perhaps accurate.
After all, Univision succeeds because Mexican immigrants
bring with them to the States a taste for Mexican television programming. Telemundo
figures it needs to acquaint future Mexican immigrants with its programming
before they cross the border. I am sure Telemundo executives would not put it
so coldly but that is, in effect, the gist of their argument as to why they
want to operate a network in Mexico.
And the Supreme Court rulings enhance the likelihood of a Telemundo
bid for a broadcast license in Mexico.
Even without a bid, the rulings will definitely create competition for the existing
duopoly of Televisa and TV Azteca.
Not surprisingly, Televisa and TV Azteca downplayed the
Supreme Court rulings in this evening´s newscast. I am sure the story will be
top of the fold in all the major Mexican dailies. Televisa, however, didn´t
mention the story until twenty minutes into its newscast. Azteca didn´t report
the story until almost forty minutes into its newscast.
Both networks have a history of slanting editorial coverage
to suit their own institutional interests.