America Movil to launch Nuestra Vision in the US
Mexican telecom behemoth America Movil (AMX) has decided to launch a Mexican language TV channel in the United States entitled “Nuestra Vision.” The new TV channel is expected to be launched by the end of 2017. The TV channel will broadcast news, movies, and sports highlights. The company will face competition from broadcasters like Univision and Telemundo. Approximately 35 million people living in the US are Mexican or of Mexican background.
According to a Reuters report, Nuestra Vision is “focused on Mexicans, made by Mexicans, and transmitted from Mexico.”
The same report stated: “The channel’s launch coincides with a charged atmosphere between Mexico and the incoming US President Donald Trump, who has taken an aggressive stance towards the Mexican economy and sparked dismay with outspoken comments on migrants. Trump has proposed taking punitive steps against producers of Mexican-made goods in an effort to bring jobs and investment back to the United States, and has also threatened to tear up a joint trade deal that underpins Mexico’s export model.”
Pay-TV providers losing subscribers
America Movil will face stiff competition from the fast growth in video streaming or the OTT (over-the-top) market. The online video streaming market in the US is a crowded segment.
Major players in the video streaming market include Netflix (NFLX), DISH TV’s (DISH) Sling TV, and Sony’s (SNE) PlayStation Vue. Meanwhile, other telecommunication companies including Verizon Communications (VZ) and AT&T (T) have entered into video streaming-over-mobile market with their respective go90 and DIRECTV Now services.
Pay-TV providers such as Verizon, Comcast (CMCSA), and Charter Communications (CHTR) are currently losing customers to online video streaming companies. The phenomenon, which is known as “cord-cutting,” is mainly due to the high monthly bills that users are paying cable and satellite TV providers. A 2Q16 report from Digitalsmiths suggests that about 35% of users pay more than $100 every month to their pay-TV provider.