Adapting Content to Current Audiecnes

TELEVISA CASE

Adapting content to current audiecnes

        Televisa was starting to be founded in 1930 when Emilio Azcárraga Vidaurreta was granted the license for creating XWE Radio, which would be the first step in order to build the now known empire of Televisa. Later on, in 1955, ts mergence with XHTV Canal 4 y XHGC Canal 5 gave name to what then would be Telesistema Mexicano, or what is the same, the precursor of Televisa. Following his dad, Emilio Azcárraga Milmo would acquire Televisa. In 1976, Televisa started exporting content to the USA through what back then was Spanish International Network, future Univisión. When he died, in 1997, his son Emilio Azcárraga Jean became the President of Grupo Televisa. (No Author, Televisa) At the time, the Group was undergoing some serious economic issues with a debt of 1347 billion US$ from Televicentro and more than 72 billion US$ from the very same Grupo Televisa. With this amount of debts and his young age their counselors recommended him selling the company, but he refused and instead he promoted a new image for the company, making it more modern and adapted to the preferences of the consumers of their media. (p.1)

        Azcárraga Jean implemented changes and new alternatives such as entering the Mexican Mobile industry, expanding their presence in the Mexican cable/broadband industry, and expanding to other outlets and markets. They created better programming and renewal of the news, they launched a satellite-television platform (SKY), changed the image of the company into a fresher one; they also created a new system of advertising prices based on the cost per rating. In addition, Televisa’s growth strategy was becoming a producer of television content using alliances and joint ventures (p.5), such as the one created with Univision, a company through which Televisa would expand their limits not only to Mexican audiences but to Hispanic audiences in the US.

         By 2010 he had covered all the debts and increased Televisa’s value up to 24 billion US$ (p.4), having an annual growth on 22% from 2003 to 2007, which in that year (2010) got up to 58% in the same period (p.11).  In the same year, there had been a notorious decrease of the income from advertising (42%) in comparison to the one obtained in 2001 (71%). This shift is mainly caused by the replacement of the audiences of free-to-air TV to pay TV and satellite, in addition to the increase of access to the Internet and the platforms that have been created relating audiovisual content. However, although revenue from TV advertising has decreased, according to PwC “Internet advertising will expand rapidly, outpacing global growth rates and reinforcing Mexico’s position as a regional powerhouse in this segment.” Nowadays, things are changing and so is the origin of the income. In 2016, things are much different than back in 2010; new media has emerged and with it, a shift in how audiences watch TV has occurred, not only content but also manner based.