Televisa to spend $180 million on regional DTH TV system

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MEXICO CITY--Televisa, Mexico's dominant broadcaster, says it plans to invest $180 million in Direct to Home (DTH) TV to supply programs to 15 Latin American nations by fall. Half the money will be spent during the first 12 months of operation. The rest will be spent over the next 24 months.

In October 1995 Televisa said it was linking with Rupert Murdoch's News Corp., Brazil's TV Globo and Tele-Communications International to launch the regional DTH TV network.

Some analysts are pessimistic about the short-term prospects for DTH, since cable penetration is not deep, indicating that low incomes will continue to keep households from making the kind of investment DTH requires. Salomon Brothers investment house contends that cable TV averages only a 12% market penetration throughout Latin America. According to Nielsen Market Research, Argentina has a 50% penetration of cable use, Mexico has 18% to 20%, Chile has 12% and Brazil has about 4%. Other countries in the region average about 4% to 5%.

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