The move creates a new relationship between the two companies – who had previously fought over Telemundo getting a foothold in Mexican TV – as Televisa is battling in court to try to void its long-term deal to exclusively supply content for US television to Univision.
Financial terms of the Telemundo-Televisa deal were not announced. Beginning in April, Televisa’s Channel 9 will broadcast more than 1,000 hours a year of Telemundo’s original programming. NBCU says the agreement will allow Televisa’s Channel 9 to broaden its viewership in Mexico as it redefines its offerings to include first-run high-quality programming, anchored by Telemundo content. In addition to the broadcast platform, Televisa will distribute a new PayTV channel to be launched later this year by Telemundo featuring Telemundo branded entertainment and news content. Televisa will provide distribution for the PayTV channel in Mexico, including its DBS platform Sky and cable system Cablevision, reaching over two million households at launch. The license agreements for Televisa’s Channel 9 and the new PayTV channel will each have an initial term of 10 years. Televisa and Telemundo say the also expect to sign agreements to distribute Telemundo’s content in Mexico through emerging platforms including Internet, mobile phones, home video and VOD.
"This is an important agreement between two global leaders in Spanish-language media. Together, Telemundo’s content and Televisa’s distribution strength in Mexico will give viewers exciting new options for entertainment content. Telemundo remains an important part of our international strategy, and this is just the latest step in its dynamic growth," said NBCU President and CEO Jeff Zucker.
"This agreement enhances our ability to offer a compelling value proposition by enabling us to bring together exciting content with extensive distribution options. By using Telemundo’s high-quality, popular programming, Televisa’s Channel 9 will have the opportunity to achieve substantially enhanced revenues and profitability over the long term in a highly cost efficient manner. Telemundo’s new PayTV channel will be a great addition to Televisa’s current PayTV channel offering,” said Alfonso de Angoitia, Executive Vice President, Grupo Televisa.