"U.S. Spanish-language television is a distinct market by virtue of its news content and public affairs programming, which cannot be found anywhere else."
Other merger critics note that advertising targeting U.S. Hispanic consumers is largely the product of corporate ad budgets specifically earmarked for reaching a discrete audience. Consequently, Univision generally does not compete for ad dollars against general-market TV competitors, but rather competes against other Hispanic media. This view would seem to lend weight to the argument that Spanish-language media constitute a separate market.
Excluding revenue from its Internet and music operations, Univision receives about 41 percent of all Hispanic ad spending and about 67 percent of all TV ad expenditures targeting the U.S. Hispanic market.
Merger opponents also caution that a merger-augmented Univision could provide three companies – Mexico's Grupo Televisa, New York–based Cisneros Group of Cos. and Univision – with a virtual stranglehold on Hispanic media globally. The largest producer of Spanish-language media content in the world, with magazine, radio, and live entertainment divisions, as well as 70 percent of the Mexican television advertising market, Grupo Televisa owns about 13 percent of Univision stock.
The Cisneros Group, whose media interests include stakes in America Online Latin America, DirecTV Latin America, and Ibero-American Media Partners, owns about 8 percent of Univision stock through Venevision, Cisneros Group's flagship broadcasting property and the leading television network in Venezuela.
According to Univision filings with the U.S. Securities and Exchange Commission, Televisa and Venevision supplied about 32 percent and 19 percent, respectively, of Univision's non-repeat programming last year.
Activists fear that these and other foreign producers of Spanish-language programming, on which Univision is dependent for the majority of its broadcast lineup, will continue to crowd out independent producers of TV programming that reflects the experiences of acculturated U.S. Hispanics.
BOARD OF DIRECTORS (AS OF 7/10/03)
A. Jerrold Perenchio
Chairman of the Board and Chief Executive Officer – Univision Communications Inc.
Emilio Azcárraga Jean
Vice-Chairman of the Board – Univision Communications Inc. Chairman, President, and Chief Executive Officer – Grupo Televisa SA
President and Chief Operating Officer – Univision Network, TeleFutura Network, Galavisión
President and Chief Operating Officer – ACT III Communications Holdings LP
Alan F. Horn
President and Chief Operating Officer – Warner Bros.
John G. Perenchio
President – Ultimatum Music LLC
Executive – Chartwell Services Inc.
Managing Director and Vice-President – Venevision International Corp.
Victor M. Ferreres Palou
President of Venevision Network and Station Group – Corporación Venezolana de Televisión (VENEVISION)
Alfonso de Angoitia
Executive Vice-President and Chief Financial Officer – Grupo Televisa SA