Mexican television battles for survival

MEXICO- In recent days, open Mexican television has taken a breath of fresh air.. Between bankruptcy threats, swearing from President Andrés Manuel López Obrador, social media lawsuits, and plummeting telenovela ratings, a version of the private lives of prominent locals has come to the fore, filmed day and night, even in toilets.

The celebrity house has set a number of records that Televisa and its streaming platform VIX+ did not expect. and at the end of the 10-week broadcast, in which the members struggled day and night to live with differences in habits, gossip and problems, she completed various tasks, among other things, attracting the attention of 20 million people.

At the Grand Final on Sunday, August 13, 80 million users used their accounts to chat online about the reality show. and during the broadcast, it received 30 trending topics across the country and five trends on Google during the final.

The overall success led to a long and triumphant statement from the company, which was interpreted by media analysts as a need to highlight the positive side and acknowledge that Mexican broadcast television is far from the glory of yesteryear.

Now, rather, it is in the struggle of the ups and downs of their finances, ratings, falls in the stock market and the loss of brightness in front of streaming platforms, which, although not new, is still surprising that this continues the streak of “survival” that is spoken of at least since 2017.

At the time, an analysis by Forbes magazine showed that the fiasco of open television, whose power in the country began to be imposed by presidents, was mainly caused by five factors: lack of flexibility due to the size of companies, lack of diversification of their audience; the lack of originality and quality of its content, and the ability to adapt popular internet figures to the small screen.

Six years later, one of the star products is still in question. While classic soap operas retain certain audiences through streaming (VIX, in the case of Televisa), new productions are not being restored.

Vencer la culpa, for example, has barely 2.2 million and another big bet, and Tierra barely hit 900,000 while Televisión Azteca hasn’t released a soap opera for eight years.

Stars?

An example of the troubled waters of the country’s two main television stations can be found in their most recent financial results, full of ups and downs, announcements of triumphs and failures. For example, in May last year, TelevisaUnivisión posted strong results for the 2023 quarter.

Among other victories, he noted that the company’s revenue increased by 5% to $1.34 billion compared to the same period last year, mainly due to the growth of its advertising and subscription business. He said advertising increased by 6% and subscriptions by 4%.

In the second quarter, the company produced over 900 hours of original content.including popular shows such as La Voz, Exatlón and Narcos: México, which have helped bring viewers to the company’s platforms and strengthen its position in the Spanish-language media market and even in China.

However, in July, the Mexican stock exchange reported that Grupo Televisa’s profits fell sharply in the second quarter of the year to 172.5 million pesos. this is only five per cent of the amount recorded for the same period last year.

Emilio Azcarraghi’s company has informed the Mexican Stock Exchange that its financial statements have been adjusted to reflect the impact of the deal with TelevisaUnivision, which was concluded on January 31, 2022.

Televisa has teamed up with Univision to create the world’s largest Spanish-language content platform, with a potential of 600 million viewers.

Tycoon in trouble

In contrast to the prudence of Mexican millionaires, Ricardo Salinas Pliego is blunt and challenging even in difficult times as he now emerges with his flagship product and where his fortune has grown from: TV Aztec.

He has a million dollar tax debt to the Mexican government.of which it has already paid a part (about $25 million at the current exchange rate) and contains one in litigation for another $1.125 million.

In public life, the Mexican Stock Exchange (BMV) suspended the listing of TV Azteca on June 1 for failure to file financial statements in the midst of a dispute with creditors.

The move comes after last March a group of creditors filed a “forced petition” to declare the telecommunications company bankrupt under Chapter 11 of the United States in Bankruptcy Court for the Southern District of New York.

The Mexican company then promised to broker more than $63 million in passive bonds with its holders.

“We confirm that we will continue to operate with strict financial discipline, ensuring that our operations remain stable in order to continue to create the best content for our audiences on open television and digital media,” he said in a statement to this effect.

Between strength and survival

Political tensions remain in the financial whirlwind. ANDPresident López Obrador had a love-hate relationship with television stations. which at other times he accused of boycotting his equality and anti-corruption project and of supporting the privileged classes, but he also benefited them with official publicity, albeit less than in other six-year terms.

With Ricardo Salinas in particular, Pliego had a period of romance when he appointed him as his adviser and outsourced the delivery of some social subsidies to Banco Azteca, but in recent months they have distanced themselves due to the tycoon’s tax debt, while Televisa continues to blame her. to be a news portal.

Author: gardenia mendoza
Source: La Opinion

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