TV Azteca, Mexico's No. 2 broadcaster, is joining with California-based Pappas Telecasting to launch a new Spanish-language broadcast network in the U.S. The new Azteca America will compete with Univision, the top Spanish-language network in the U.S., and No. 2 Telemundo. Univision has about 80% of both total ratings and the estimated $900 million in Hispanic TV ad spending. Pappas will own about 80% of the estimated $500 million value of Azteca America, with TV Azteca providing programming valued at $100 million via an exclusive 20-year contract, in return for between 10% and 15% of the network. The partners expect the network coverage will initially reach 45% of the U.S.' Hispanic viewers, rising to 65% by 2002.
Copyright September 2000, Crain Communications Inc.