Reasons for acquisition
In a bid to target Hispanic and Latino American audiences, Comcast (CMCSA) bought Telemundo in 2011 as part of a deal with NBCUniversal. The acquisition seems to have been a smart move, as the company has surpassed its closest rival, Univision, in primetime ratings from viewers aged 18 to 49.
In 3Q17, broadcast television revenue, which comprised 26% of NBCUniversal’s total revenue, rose 12.3% year-over-year, excluding the impact of the Rio Olympics. A 20.5% increase in content licensing revenue, coupled with 2.3% growth in distribution and other revenue, boosted broadcast television revenue in 3Q17.
Strong content expected to boost ratings
Two of Telemundo’s TV series featured in the top-15 list according to comScore (SCOR) and Nielsen (NLSN) ratings, which indicates that the channel may be a leader in 2017–18 media network rankings. According to Nielsen ratings, Telemundo’s average viewership stood at 894,000 in 3Q17, whereas Univision’s was 688,000.
Telemundo is a popular Spanish broadcast network featuring original shows, movies, news, and sporting events. It holds Spanish language coverage rights for certain NFL games through 2022 and FIFA (International Federation of Association Football) World Cup broadcast rights in the Spanish language through 2026.
Broadcast rights for sporting events may boost the network operator’s viewership ratings, as well as its distribution and advertising revenue. Telemundo continues to gain popularity among young audiences with hit shows Sin senos sí hay paraíso and Mariposa de Barrio. Univision may pose some competition with its new co-production with Netflix (NFLX), El Chapo, and the returning dance competition series, Mira QuienBaila.