What was the Group’s role in the founding of Univision?
For over 15 years we had looked for the right structure for investment in television to serve the U.S. Hispanic market.
In 1992 we found an opportunity to invest in the U.S. that came about due to FCC requirements limiting foreign ownership of television stations in the U.S.
After starting some TV stations in the U.S., Emilio Azcárraga Milmo of Televisa was required to sell them due to FCC regulations. We were able to convince Azcárraga Milmo that we should try to repurchase what would eventually become Univision, and bring in an American partner.
I partnered with Azcárraga Milmo and the talented U.S. television executive, Jerry Perenchio. Perenchio had already invested in several Spanish-language channels, and was also a believer in the future of Hispanic television in the U.S. After a year of intense negotiations we had a deal.
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The Cisneros Group was the largest shareholder in Univision? How did that come about?
We were all equal partners initially, but the other two founding partners sold shares in secondary offerings while we kept our initial one-third share.
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What role will you play in the future of Univision?
Our Venevisión unit is a strategic partner with Univision, and is a major supplier of its programming under a contract which is in effect until 2017.
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Do you have any other plans for acquisitions in the media industry? What kind of acquisition might you be looking for?
We are always looking for acquisitions that are appropriate for the Cisneros Group based on whether the acquisition would fit into, or complement, our existing mix of businesses.
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The Cisneros Group has rolled out Movida, a new pay-as-you-go cell phone service aimed at the U.S Hispanic market. What brought you into this market? Please outline your strategy behind this development.
Movida is the first pay-as-you-go wireless communications service specifically targeting the nearly 45 million Hispanics living in the U.S. The U.S. Hispanic market has never been successfully targeted by U.S. telecommunications providers. There is a reason for this. The Hispanic segment has specific needs that are both linguistic and cultural. And we understand those needs.
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Why is the Cisneros Group of Companies so interested in the U.S. Hispanic market?
The Cisneros Group is investing heavily in the U.S. Hispanic market, creating new ventures and complementary businesses, and expanding current operations. The reason is that the Hispanic population is the fastest-growing ethnic segment in the U.S. and its buying power has tripled in the past 15 years to $700 billion. This vibrant and expanding market has specific needs that are both linguistic and cultural.
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You have recently been emphasizing your investments in the United States. Do you see the Cisneros Group moving its operations there in the near future?
We already have important operations based in the U.S. This is only natural if we consider the importance of the U.S. Hispanic market and our interest in it. But we are an increasingly global group, with operations in several regions and the multiple headquarters to serve them.
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What do you think is your most important contribution to the world of media so far?
We believe that the Cisneros Group of Companies have played a pioneering role, together with others, in promoting new technologies, and also in providing original and attractive content to TV viewers in rapidly expanding markets, including the U.S.-Hispanic market.
More importantly, we at the Cisneros Group always look forward to being a part of what comes next. We are very aware of the popularity of Latin content, and Telenovela programming in particular, in international markets and are looking forward to capitalizing on the opportunities that represents.
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What’s the difference between running an entertainment company and running a beverage or packaged-goods company?
We apply the same business strategies and philosophies that have made us successful in the consumer products sectors. We are just applying these successful techniques to a new world of opportunity created by technology.
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What kind of business are you doing in China?
China is one of the most exciting overseas markets and we have closed deals there that will result in the airing of several of our telenovelas on CCTV. It is the main network in the country and reaches 98% of the viewing audience. (That’s 1.3 billion people).
The number of channels and the need for content to feed the programming grids point to a great opportunity in this expanding economy.
We expect to place our general entertainment, documentary and film catalogs there.
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Do you see any opportunities for the Cisneros Group to acquire companies in Europe?
The Cisneros Group is always on the lookout for appropriate new ventures to invest in. We are constantly receiving requests to review this or that proposal, or assess the opportunities of some new project. At the moment we do not have any acquisition plans to discuss.
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The private sector—Fundacion Cisneros is becoming increasingly involved in education. What is your role within the Fundacion Cisneros?
The Cisneros Group of Companies is deeply committed to improving the lives of all Latin Americans. Together with the Fundación Cisneros, we are responding to the need for a better education in Latin America. Our main collaborative effort with Fundación Cisneros is AME, Actualización de Maestros en Educación, an initiative that creates comprehensive professional development courses and a virtual community for teachers across the region. We are also proud of our Piensa en Arte (Think Art) initiative, an innovative visual-arts education program developed jointly with educational and cultural institutions, which utilizes the traveling exhibitions of the Colección Patricia Phelps de Cisneros. In addition, our educational television channel, Cl@se, is the first of its kind and has offered pan-regional, commercial-free educational entertainment since 1996.
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