Global Communications Giants Form Joint Venture for Latin American Satellite TV Service

The world's biggest communications companies, News Corp., Grupo Televisa SA, Globo Organizacoes, and Tele-Communications Inc., are joining forces to provide direct-to-home satellite television service to the Latin American market, marking a significant leap for Rupert Murdoch's drive to become a global distributor of TV programming. The joint venture brings together four powerful companies that dominate various aspects of the TV business in their respective markets. This partnership is expected to offer a wide array of channels to the Latin American market, including Spanish-language soap operas, magazine, and news shows, as well as programming from the Fox network, BSkyB, and Star TV satellite services.

Key Takeaways:

• The joint venture, comprising News Corp., Grupo Televisa SA, Globo Organizacoes, and Tele-Communications Inc., will provide direct-to-home satellite television service to the Latin American market.
• Each partner will contribute programming to the venture, including Grupo Televisa's Spanish-language content, News Corp.'s Fox network and BSkyB programming, and TCI's U.S. cable channels.
• The partnership represents a major leap for Rupert Murdoch's News Corp. in its drive to become a global distributor of TV programming.
• The joint venture will offer a wide range of channels to the Latin American market, with a focus on Spanish-language content.
• Grupo Televisa, the largest producer of Spanish-language programming in the world, will supply its vast array of soap operas, magazine, and news shows.
• Televisa's stake in PanAmSat, which has raised $230-million in a public stock offering, will play a crucial role in delivering hundreds of channels of programming to the region.
• The partnership is expected to make it difficult for rivals to compete in the fast-growing Latin American market, which is expected to become one of the next fastest-growing markets for satellite television.

Statistics:

• News Corp. plans to invest $500-million (U.S.) in the joint venture.
• Televisa commands 85% of the viewing audience in Mexico and is one of the largest suppliers of TV programming in the world.
• PanAmSat, in which Televisa owns 40.5%, is scheduled to have four satellites operating over South America by 1997 that will be capable of delivering hundreds of channels of programming to the region.
• Latin America is expected to become one of the next fastest-growing markets for satellite television.

Sources:

• Wall Street Journal
• News Corp.
• Grupo Televisa SA
• Globo Organizacoes
• Tele-Communications Inc.