The deal is a rare opportunity for another broadcaster to enter a market where only dominant Televisa and rival Azteca have been allowed to build networks. Next, they plan to distribute Telemundo content via Televisa in Mexico through the internet and mobile phones.
"This will [also] influence our U.S. growth because its creates greater awareness of our product in Mexico," said Telemundo President Don Browne.
Rival Univision has long benefited from Mexican immigrants' familiarity with the Televisa programming it airs and the buzz generated by friends and family watching the same novela on both sides of the border.
"Our focus can only be international; we can't do anything with Televisa here," Mr. Browne said.
That's because Televisa is locked into an acrimonious long-term deal to sell its programming to Univision in the U.S. until 2017. The two broadcasters go to trial in Los Angeles this month in Televisa's most determined attempt yet to get out of the contract, depriving Univision of 40% of its non-repeat broadcast lineup, according to a Univision court filing.