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    BCUniversal Bets Big on Original Spanish-

    ingo Productions

    VIEW GALLERY9 PHOTOS

    (HTTP://VARIETY.COM/GALLERY/PHOTOS-

    A-LOOK-INSIDE-

    TELEMUNDOS-

    TELENOVELA-

    FACTORY/#!1/&REF=/2013/TV/NEWS/NBCUNIVERSAL-

    BETS-BIG-ON-

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    1200569558/POS=)

    (http://variety.com/gallery/photos-a-look-inside-telemundos-

    elenovela-factory/#!1/&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-

    panish-lingo-productions-1200569558/pos=)

    (http://variety.com/gallery/photos-a-look-inside-telemundos-

    elenovela-factory/#!2/&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-

    panish-lingo-productions-1200569558/pos=)

    ULY 30, 2013 | 03:00PM PT

    COVER STORY: Can telenovelas produced in Miami help Telemundochallenge Univisions dominance?

    Cynthia Littleton (http://variety.com/author/cynthia-littleton/)

    ditor-in-chief: TV

    @Variety_Cynthia (http://twitter.com/@Variety_Cynthia)

    http://variety.com/gallery/photos-a-look-inside-telemundos-telenovela-

    actory/#!&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-spanish-lingo-productions-

    200569558/pos=) Sam Hadley

    http://variety.com/gallery/photos-a-look-inside-telemundos-telenovela-factory/#!&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-spanish-lingo-productions-1200569558/pos=http://twitter.com/@Variety_Cynthiahttp://variety.com/author/cynthia-littleton/http://variety.com/gallery/photos-a-look-inside-telemundos-telenovela-factory/#!2/&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-spanish-lingo-productions-1200569558/pos=http://variety.com/gallery/photos-a-look-inside-telemundos-telenovela-factory/#!1/&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-spanish-lingo-productions-1200569558/pos=http://variety.com/gallery/photos-a-look-inside-telemundos-telenovela-factory/#!1/&ref=/2013/tv/news/nbcuniversal-bets-big-on-original-spanish-lingo-productions-1200569558/pos=
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    rom the outside, Telemundo Studios (http://variety.com/t/telemundo/) looks like a nondescript

    warehouse on a side street in Hialeah, Fla.

    SEE MORE:From the July 30, 2013 issue of Variety (http://variety.com/print-issues/320-16-july-30-

    2013/)

    Oh, but what happens inside: Dreams come true, plucky girls from poor families marry millionaires, love

    riangles tear marriages apart, evil drug lords meet justice and plumbers court princesses, all on a daily

    asis.

    he production facilities hum nearly round the clock, thanks to the mandate to turn out hundreds of

    ours of telenovelas a year for the Spanish-language network owned by NBCUniversal

    http://variety.com/t/nbcuniversal/). Its a sopa-to-nuez operation, with everything from writers rooms and

    asting offices to miles of wardrobe racks and post-production equipment housed within two-story

    uildings.

    Perhaps the most telling resource on the Telemundo lot these days is tucked away in an alley that runs

    etween the stages. Its small but significant: a New York street set built for the production of the 2012ovela adapted from the 2002 Jennifer Lopez movie Maid in Manhattan.

    he homegrown production boom at Telemundo reflects the companys move during the past two years

    o make a 90-degree shift in its programming strategy, focusing on novelas and other shows produced in

    panish but with U.S. sensibilities. That means more soaps set in places like Miami, New York, Los

    Angeles and Chicago, and far fewer imports from novela factories in Latin America.

    he strategy, led by Telemundo Media prexy Emilio Romano since his arrival in 2011, gives the

    ompany much greater control over its primetime lineup, and has had the added benefit of expanding its

    nternational distribution business. Telemundo has long faced a Hertz-Avis style battle in its competition

    with the larger and more successful Univision for a slice of the domestic Spanish-lingo TV audience.

    With that market growing rapidly, Romano sees a clear path for Telemundo and its cable sibling Mun2 in

    ppealing to viewers who see themselves as increasingly bicultural.

    http://variety.com/t/nbcuniversal/http://variety.com/print-issues/320-16-july-30-2013/http://variety.com/t/telemundo/
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    We create original content by U.S. Hispanics for U.S. Hispanics, Romano says. We become closer to

    ur audience by reflecting the feelings and emotions of people living in this country. Were the Spanish-

    anguage media company that produces the most primetime programming in the U.S. We have been

    apturing an increased share of the audience, and that gives us comfort knowing that our strategy is

    working.

    elemundo has been riding a ratings wave for the past two years that started with its runaway hit novela

    La reina del sur (Queen of the South think Pablo Escobar in a micro-miniskirt). This year, it has

    cored with novela La patrona (a woman fights naysayers to take over a mining company) and reality

    kein La Voz Kids, a Hispanic family-friendly spin on NBC hit The Voice.

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    Voz has averaged 2.16 million viewers a week since its May 5 debut. The decision to tweak the format

    rom the NBC rendition by focusing on moppet contestants was a calculated effort to encourage family

    iewing, which has paid off.

    Among the many original series in the works for Telemundo are an Espanol take on Top Chef and a

    ameshow from Ryan Seacrests production company.

    ut as much as Telemundo is branching out into nontraditional genres, Romano and his team know all

    oo well that the backbone of the network remains its primetime telenovelas the hourlong serials that

    un Monday to Friday, usually for 24-32 weeks. The shows do not repeat, which means the network

    emands a plentiful pipeline of product, with new 8 p.m., 9 p.m. and 10 p.m. entries launching year-

    ound on a staggered schedule. They go head-to-head with Univisions staple of four novelas that air

    Monday-Friday, starting at 7 p.m.

    ecause telenovelas are so central to TV throughout Latin America, the competition among networks to

    ock up exclusive deals with top producers and studio suppliers is fierce. The battles between Mexicos

    elevisa and TV Azteca are legendary (over novela assets, among other things).

    Univision has deep ties to Televisa (which owns about 38% of Univision) and thus has a lock on its

    rolific output of hits. Univision has leveraged its clout and affiliation with Televisa to ensure it has

    xclusivity from major players like Venezuelas Venevision and Colombias Caracol TV.

    aced with the problem of finding consistent sources of high-quality programming, Telemundo opted to

    rovide an inhouse solution, ramping up a production operation that now delivers more than 750 hours

    f novela programming a year through the Miami studio and another production facility in Mexico.

    elemundos programming team frequently draws on existing formats from outside producers for source

    material, but these are reversioned for a U.S. sensibility, with an emphasis on the Mexican experience,ecause that is the single largest component of the U.S. Latino population (about 63% according to the

    010 U.S. Census).

    Contrary to the assumptions of many mainstream media execs, Spanish-speaking viewers are hardly

    monolithic. Dialects, attitudes and conversational conventions vary widely according to region. And

    heres a melting-pot effect that comes over time for immigrants and their second-generation offspring.

    oshua Mintz, exec veep of scripted programming and general manager of Telemundo Studios, says the

    etwork produces different kinds of novelas that most often reflect the color, sound and flavor of Mexico,

    ut are balanced with the reality of life in the U.S. The fact that we have the capacity to produce five to

    ix novelas a year now is really amazing compared to where we were a couple of years ago, says

    Mintz.

    NBCUniversals willingness to invest in making Telemundo more competitive in its battle against

    Univision and other outlets vying for Hispanic auds has been a spark for the domestic Spanish-language

    marketplace. Univision also has been on an expansion push, with plans to launch Fusion, an English-

    ngo news-and-lifestyle network with ABC News later this year, and investing in Robert Rodriguezs

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    tartup, English-lingo entertainment channel El Rey.

    There hasnt been a better time in U.S. Hispanic TV history than now, with more programming options,

    ormats and networks in the market, says Luis Balaguer, partner with Sofia Vergara in Latin World

    ntertainment, which recently received an order from ABC for a drama, Killer Women, thats based on

    n Argentine format.

    Adds Telemundos Romano: The competitive environment of Spanish-language media in the U.S. is

    lowly evolving to resemble the truly competitive nature of English-language media.

    he growing prominence of Spanish-language TV in the U.S. was underscored July 23 when Univision

    taged a premiere event for its novela La Tempestad at Universal Studios CityWalk in Los Angeles.

    housands of fans turned out to swoon over star William Levy, the hunky Cuban leading man who is a

    ovela vet, but known to English-speaking viewers from his recent stints on ABCs Dancing With the

    tars and VH1s Single Ladies.

    y now, every media exec is familiar with the eye-popping stats concerning the Hispanic population: The

    umber of Hispanics in the U.S. is projected to reach more than 120 million by 2050, after growing by3% between 2000 and 2010, to 50.5 million, or 16% of the total U.S. population. Nielsen counts 14.1

    million Hispanic TV households, up from 8.7 million in 2000.

    elemundo and others estimate that about 24 million-25 million people consider themselves Spanish-

    anguage dominant, making them the bulls-eye of the target for Spanish-lingo media.

    or the 2012-13 season to date (which is a September-to-September cycle for Univision and Telemundo

    iven the no-repeats paradigm of novelas), Telemundo is averaging 1.43 million viewers in primetime

    780,000 in the adults 18-49 demo), up from 1.21 million in the same period in 2011-12. Univision is

    veraging 3.66 million viewers (1.8 million in adults 18-49), up slightly from the year-ago period (3.61million). Clearly, there is room for both nets to grow, even as the national Latino TV market gets

    rowded with the recent entry of Foxs MundoFox and indie EstrellaTV.

    Nielsen estimates there are about 15 million upscale Latinos with household incomes of $50,000-

    100,000. Three quarters of those speak both English and Spanish, and more than one-third consume

    media content in both languages. Theyre typically younger than their upscale white counterparts (a

    median age of 33 compared with 39 for whites) and the majority of them have young families (85% have

    household size of three or more), according to Nielsen.

    n short, they are an advertisers dream demo consumers in need of everything from diapers and

    washing machines to life insurance and financial planning services. And maybe the occasional cruise or

    rip to Disney World.

    Advertising spending on local and national Spanish TV outlets is still a fraction of the overall TV

    dvertising pie accounting for about $6 billion of the $74 billion spent on TV in 2012. But that was up

    5% from 2011, compared with an 8% year-to-year gain for the overall TV ad market, according to

    Kantar Media estimates. Ad rates, however, for Spanish-lingo TV spots remain significantly lower than in

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    he general market, which is a sore spot for execs, given the desirable youthful composition of the

    udience.

    Romano came to Telemundo with a studied understanding of Hispanic consumers in the U.S. He ran

    Mexicana Airlines from 2004-07, and before that was a top exec at Mexican media giant Televisa in the

    990s. During that time, he served on the board of Univision, in which Televisa has long been a major

    hareholder.

    At that point in time, there was a lot of doubt about the future of Spanish-language TV in the U.S.

    People thought it was a fad and that wed all be watching English-language TV eventually, says

    Romano, a native of Mexico City who now lives in Miami. The business, he adds, has never been so

    ealthy and growing at such a fast pace.

    Romano had been out of the media biz for a few years before he got the call in 2011 from NBCUniversal

    CEO Steve Burke to come help make Telemundo a more hearty competitor to the long-dominant

    Univision. Romano did not hesitate. He sees NBCUniversal as uniquely well positioned to reach Latino

    uds of all demos and language preferences thanks to Telemundo and the Peacocks strong collection

    f cable nets.

    o that end, NBCU in April recruited former Univision CEO Joe Uva to oversee a newly created Hispanic

    nterprises and Content arm charged with expanding NBCUs reach and relevance to Hispanic auds

    cross its news and entertainment platforms.

    elemundo and Mun2 are centerpieces of that effort. Although Mun2 has experimented with running

    nglish and Spanglish programs in the past, Romano believes the focus is best kept on speaking to

    iewers en Espanol to grow its core audience.

    he network learned an important lesson about what viewers want from Telemundo and what theyont want with its experiment in 2010 in carrying a few NFL games featured on NBCs Sunday Night

    ootball, but with a different in-studio team.

    he turnout for the telecasts (which ran on its stations in five top markets) was anemic: Hispanics who

    re interested in football want to watch Al Michaels and Co., just like other gridiron fanatics. Now,

    elemundo sports anchors provide the Spanish simulacast feed for NBCs football telecasts.

    Meanwhile NBCU is investing in sports rights for Telemundo, outbidding Univision for Spanish-lingo TV

    ghts to the World Cup in 2018 and 2022. That deal, estimated at $600 million, was a big symbolic win

    or the No. 2 network, and a sign of NBCUs commitment (even at the risk of having the games be a loss

    eader). And NBC Sports new wide-ranging pact with NASCAR includes Spanish-lingo rights for

    elemundo, which expects to score with coverage of the racing circuits events in Mexico starting in

    015.

    Romano cites all of this activity as proof that the Peacock intends to make Telemundo a contender.

    The core of Telemundo Medias mission is to be the best producer of original Spanish content for the

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    MORE TV NEWS(HTTP://VARIETY.COM/V/TV/) FROM

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    world, Romano says. We are slowly but steadily building an environment that allows producers and

    alent relevant to the U.S. Hispanic market to bring new waves of ideas and different products to the

    creen.

    Anna Marie de la Fuente contributed to this report.)

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