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Targeting the Hispanic Home

Multichannel providers add HD, multiplatform content to their Latino-targeted bundles 10/01/2012 12:01:00 AM Eastern

RELATED: Super-Serving
Hispanic Subscribers

Reporter
Without Borders

Hispanic
TV Summit Guide to Networks

With the 2010 U.S. Census once again highlighting the
growing importance of Hispanic consumers, operators and programmers are
responding with a number of new offerings for TV, bundled services and the
multiplatform delivery of Hispanic content for online, mobile and tablet
viewing.

"Hispanics in the U.S. today make up 16% of the population, but we are
poised to become an event larger group in the future," Ruben Mendiola,
Comcast's vice president and general manager of multicultural video services,
said. "One in four kids today is Hispanic and it is expected by that 2010,
one in every four people aged 18 to 34 will be Hispanic. Comcast has recognized
that Hispanics are a very, very important group to serve and this is only going
to increase in the future."

As part of that effort, Comcast last year created a new multicultural division
and is planning to launch a much-expanded Hispanic offering in late 2012 and
early 2013 that will include additional channels and make additional content
available on more devices.

Others are also putting more resources into the area, with Verizon
Communications' FiOS TV adding 12 new channels in the last year and companies
such as AT&T expanding both their TV Everywhere and interactive offerings.
"With the Univision deal we announced earlier this year, we are continuing
to deliver more content to more screens to our Hispanic customers," Ryan
Smith, executive director of content acquisition at AT&T, said.

Programmers have also responded. After hovering at between 80 and 90 Hispanic
channels in recent years, the 2012 B&C/Multichannel News list of
Hispanic channels available in the U.S. comprises more than 110 programmers.

More HD services are also on the way, with Olympusat launching nine new HD
channels in the last year.

Satellite-TV provider Dish Network, which has long had the most subscribers to
Hispanic packages, has been working to ramp up its offerings in all of these
areas, with new linear channels and a greatly expanded offering of
Spanish-language content online.

But as operators expand their packages and programmers respond with the launch
of new channels, the industry continues to face some important challenges.

The number of Latino TV homes has grown to nearly 14 million and the number of
Hispanic pay TV households hit 11.73 million in July of 2012, up from around 8
million Latino cable and satellite homes in 2003, according to Nielsen.

But the number of Latino digital-tier homes is only 4.2 million, not much
higher than the 4 million digital-tier homes in 2003. That indicates operators
have not been as successful as they should be in selling their Spanish-language
video packages.

This year's summary of the Hispanic offerings at the 10 largest multichannel
operators shows that they are hoping to change that result by expanding their
HD services, offering better bundles, boosting the amount of Spanish-language
content in their TV Everywhere offerings and improving the English language
they bundle with their Hispanic tiers.

Comcast

Basic subscribers: 22.3 million

High-speed Internet subscribers: 18.6 million

Phone subscribers: 9.5 million

Contacts: Marcien Jenckes, senior vice president and general manager of
video services; Ruben Mendiola, vice president and general manager
multicultural video services; David Jensen, vice president of international
programming; Adrian Adriano, vice president, multicultural marketing, (215)
286- 8371; Roberto Perez, director of multicultural marketing, (215) 286-2867;
Michael Demilio, director of multicultural video strategy, (215) 285- 5462;
Jorge Alberni, director of corporate communications, (215) 285-5240.

Hispanic packages: Multiple Latino video packages (depending on the
package, about 60 Spanish-language channels combined with various amounts of
Englishlanguage networks, music channels, a digital set-top box and video-on-demand
in Spanish for $29.95 to $76.90). About 80 programmers have signed deals with
the MSO; its systems select channels from among those programmers to customize
their local offerings.

Spanish VOD, HSI and bundles: Off ers more than 630 free Spanish-language
VOD choices at any time, in addition to dual English/Spanish audio feeds on
select films; has an extensive library of more than 900 choices of online
content in Spanish in its Xfinity TV Latino Spanishlanguage portal; a growing
amount of Spanish-language content on its Xfinity Streampix over-the-top
services and on mobile apps; offers a number of bundles specifically for
Hispanic subscribers; and has launched special international calling plans as
part of the triple play, with 300 long-distance minutes to Mexico and Latin
America.

Major Hispanic markets: Passes more than 4 million Hispanic subscribers,
serving such large Hispanic markets as Miami; Houston; Chicago; Boston; San
Francisco; Denver; Atlanta; Philadelphia; and Albuquerque, N.M.

Recent and future plans: Comcast, the first cable operator to devote
significant resources to the Hispanic market, rolled out lower-cost Hispanic
tiers in 2003 and has since regularly expanded both linearchannels and free
Spanish-language VOD content.

In the last year, though, the nation's largest operator has made particularly
dramatic changes as it set up a new division to focus on the market. As part of
that effort it has expanded the number of Spanish-language channels in its
packages; increased its Spanish language HD channels; more than tripled its
Spanish VOD offerings; expanded its multiplatform delivery, with more
Spanish-language content for the Web and mobile devices; and is upgrading its
digital platform so customers can more easily find VOD and online content.
Newer networks added to systems include beIN Sport, Pasiones, CentroAmerica TV,
Baby First TV Americas and Latin American Sports (LAS).

Bundles specifically targeted to Hispanics have been available since October
2006 and Comcast continues to focus on those in its marketing efforts. The
company has also launched Internet Essentials, a low-cost broadband service
available to lower-income groups for $9.95 a month; a set of calling plans
offering 300 minutes of international calling to Mexico and 300 to Latin
America; has agreed to launch 10 new independent channels, with many of those
to be Hispanic or African-American ownedand operated channels; and announced
the nationwide rollout of Xfinity Triple Play MultiLatino, which combines TV
programming and services, Internet, and a phone offering that includes 300
international minutes per month to Mexico or Latin America.

Looking forward, Comcast plans a major revamp of its packages and bundles
slated to be rolled out in late 2012 and early 2013. Th is will expand the
number of channels; increase the amount of content available on-demand and on
additional platforms; offer better ways to find and discover content; add
additional features to the voice and high-speed Internet products; and create packages
and offerings more tailored to the needs of different consumers and different
parts of the Hispanic community.

DirecTV

Subscribers: 19.9 million

Contact: Karla Sustaita, director, multicultural segments, (310)
964-5942.

Hispanic packages: Lowest-priced offering is Más Latino (more than 45
Spanishlanguage channels, local broadcasters, secondary audio programming feeds
and English-language channels for a total of more than 100 channels for $34.99;
currently promoted at $22.99 for first year); also offers Optimo Más (more than
55 Spanish-language and over 110 Englishlanguage channels); Más Ultra (more
than 60 Spanish-language and more than 145 English-language channels); and Lo
Maximo (more than 60 Spanish-language and over 235 English-language channels).

Spanish VOD, HSI and bundles: Spanish-language on-demand content
includes Spanish-language versions of new-release titles, Univision On Demand,
Tr3s: MTV, Musica y Más, ESPN Deportes, Disney Channel, Sprout and Nickelodeon;
bundled packages are sold with telco partners around the country; various
DirecTV apps and TV Everywhere offerings give customers access to content on
computers and mobile devices.

Major Hispanic markets: National footprint that offers local stations,
including Spanishlanguage broadcasters, in many markets.

Recent and future plans: DirecTV continues to expand its channel lineup,
with new Spanish-language channels, HD content, TV Everywhere products and
other content. Recently added channels include beIN Sport, Nat Geo Mundo and Utilisima;
many of its premium movie channels are also available in SAP. Current
promotions include: $17-per-month discount on Óptimo Más for first year; $23
discount on the Más Ultra package of over 205 English and Spanish-language
channels, normally priced at $62.99; and $35 discount on the Lo Máximo package,
with more than 295 channels and more than 43 movie channels normally priced at
$119.99.

Dish Network

Subscribers: 14.1 million

Contact: Alfredo Rodriguez, VP of Latino marketing at Dish Network, alfredo.rodriguez@dish.com,
(303) 723-1546; Alex Coward, manager of Latino programming, alex.coward@dish.com,
(303) 723-1257.

Hispanic packages: Include DishLatino Básico (more than 55 channels in
Spanish and English for $22.99); DishLatino Clásico (more than 180 Spanish and
English services for $32.99, currently promoted for $22.99 for first 12
months); DishLatino Plus ($37.99 for over 190 Spanish and English channels,
currently being promoted for $22.99 for 12 months); DishLatino Dos (more than
220 English and Spanish channels for $44.99, currently promoted at $29.99 for
12 months); DishLatino Max (more than 265 English and Spanish services for
$57.99, currently promoted for $39.99 for 12 months).

Spanish VOD, HSI and bundles: Offers Spanish-language movies and
television shows to subscribers who have set-top boxes capable of getting
on-demand content; has rolled out TV Everywhere apps and authenticated online
mobile offerings that provide subscribers with access to Dish content;
subscribers with Sling-enabled boxes and devices can also access live Dish
programming on other devices; telco partners bundle Dish's video packages with
their phone and internet offerings; DishLatino portal offers extensive
on-demand content online from Univision's channels, Discovery en Español and
others; Blockbuster offering, which is free for the first three months, has
Spanish-language titles for streaming or DVD rental.

Major Hispanic markets: National footprint with local broadcast stations
available in most markets.

Recent and future plans: Satellite-TV company Dish was the first
provider to seriously target the Hispanic market, viewing the effort as a means
of differentiation and it continues to have more subscribers to Hispanic
packages than any other operator. Currently offers a range of packages that
include less expensive packages targeted to first generation Spanish-dominant
Hispanics as well as packages with more English-language programing for
bilingual homes or fully acculturated Latinos. It also has FlexTV offerings
that do not require contracts or credit checks.

New channels added in the last year include beIN Sports and several of the new
Univision channels, including Univision Deportes, Univision tlnovelas and
FOROtv. As part of the Univision deal, Dish has added thousands of hours of
Univision movies, telenovelas and TV series available online.

Along with the addition of new content and services, Dish has also improved its
subscriber-retention efforts. It also continues to focus on TV Everywhere
efforts, given the higher usage of online and mobile video by Hispanics, and is
looking to expand both mobile and HD offerings in 2013.

Time Warner Cable

Basic subscribers: 12.3 million

High-speed Internet subscribers: 10.8 million

Voice subscribers: 5 million

Contact: Jeffrey Hirsch, executive vice president and chief marketing
officer, (212) 364-8299.

Hispanic packages: Offers several packages, but the lead one is El
Paquetazo (65 to 80 Spanish-language channels for a total of 150 to over 180
channels, a digital box and access to VOD for $29.99 to $41.99, depending on
the region).

Hispanic VOD, HSI and bundles: Lo Mejor on Demand offers more than 160
free Spanish-language programs; broadband service has extensive
Spanish-language pages; TWC is expanding Spanishlanguage offerings on its iPad
app and TV Everywhere platform so that it now has around 40 Spanish-languages
on its cable TV app; has a variety of triple-play packages that are marketed to
Hispanics; its International OnePrice calling plan offers the MSOs phone
subscribers 1,000 free minutes to more than 100 countries, including many in
Latin America, for $20.95 in New York City, with prices varying by market.

Major Hispanic markets: New York; San Diego, Los Angeles and other
Southern California operations; Texas; and the Carolinas. Serves DMAs where
about 47% of all U.S. Hispanics reside.

Recent and future plans: The New York system rolled out a low-cost DTV
en Español entry-level package in early 2003 and has since been expanding and
developing its packages. Its main Hispanic package, El Paquetazo, was first
launched in 2008 in Los Angeles and is now available in its major Hispanic
markets with a greatly expanded offering of Spanish-language channels and VOD
content. As a result of those moves, the MSO has seen significant subscriber
gains and increased usage of its VOD services.

Has been working to expand the content on its TV Everywhere offerings and its
cable TV apps. Now offers up to 250 total channels, with around 40
Spanish-language channels. As part of a push to add more HD services, has added
HD versions of ESPN Deportes, Fox Deportes and others and is launching what it
is billing as the first Spanish-language regional sports network, Time Warner
Cable Deportes in California, which will features exclusive programing from the
National Basketball Association's Los Angeles Lakers and other teams. Has also
been ramping up its Hispanic-targeted social-media efforts on Facebook.

Cox Communications

Total residential and business customers: About 6 million

Basic video subscribers: 4.7 million *

High-speed Internet subscribers: 4.6 million **

Phone subscribers: 3.2 million **

Contact: Philip Polk, director of segmentation marketing, (404) 847-6484

Hispanic packages: Paquete Latino (up to 35 Spanish-language networks
and 10 to 15 channels of English-language local broadcast stations and basic
services for about $28 to $32); El Mix (up to 35 Spanish-language networks and
around 40 channels of English-language programming for $35 to $40); Super Mix
(over 250 channels including the Spanish-language tier for $60 to $65). Local
systems customize channels and pricing.

Hispanic VOD, HSI and bundles: Offers a variety of English and
Spanish-language movies, music and other TV programming on demand; has a
variety of bundles and calling plans, which include two new Mi Mexico calling
plans that offer either 200 minutes or 1,000 minutes of long-distance calling
to Mexico.

Major Hispanic markets: Include Arizona, Southern California and Las
Vegas.

Recent and future moves: As part of a completely revamped Hispanic
strategy, Cox launched Paquete Latino and a Spanish-language website in 2004
and has since continued to expand offerings, launching the El Mix tier in 2010.

Since then, has added 10 Spanishlanguage channels and is looking to further
improve both its Spanish and English-language off erings. As a result of a
strategy of developing attractively priced bundles, about 65% of all Hispanic
customers take two or more products; in addition over 60% of Hispanic customers
take expanded tiers of English-language programming bundled with the Hispanic
package.

Is also looking to expand Spanishlanguage VOD packages; is improving its
bundles with better long-distance plans; and is working with its ad agency to
significantly expand both the quantity and the types of advertising it uses.

Verizon FiOS TV

Basic-video subscribers: 4.5 million

High-speed Internet subscribers: 5.1 million

Mobile subscribers: 94.2 million

Retail residence voice connections: 12.2 million

Contacts: Michelle Webb, director of content strategy and acquisition
for Verizon, (212) 406-6714; Oscar Madrid, director of multicultural marketing.

Hispanic packages: Lowest-cost option is "Spanish-Language
Package" (around 70 Spanish-language channels in a $12.99-permonth tier).
The more popular option is La Conexión (including 70 Spanish-language channels
for a total of more than 190 channels, including 31 HD channels, for $89.99 in
a triple-play bundled package); various more-expensive options.

Spanish VOD, HSD and bundles: Offers a variety of Spanish-language VOD
movies and television programming; offers La Conexión bundle and the Spanish-Language
Package; has Spanish-language website (enciendetefios.com).

Major Hispanic markets: New York, New Jersey, Texas, Florida,
California, others.

Recent and future plans: Hispanic markets have always been an important
part of the telco's strategy and FiOS TV has made available a robust Hispanic
offering since launch. In the last two years, Verizon has made significant
additions to its Hispanic offerings, adding 12 within the last year.

New HD channels for Hispanics have been a major focus, with the June launch of
nine HD channels from Olympusat's Ultra HDPlex services - Ultra Cine, Ultra Fiesta,
Ultra Kidz, Ultra Mex, Ultra Luna, Ultra Macho, Ultra Film, Ultra Docu and
Ultra Clásico. In June, it also announced the launch of Multimedios and in May
signed a new multiyear carriage agreement with Univision that will see the
launch of Univision Deportes, Univision tlnovelas and FOROtv.

Verizon also continues to expand the Spanish-language content for its TV
Everywhere offering; the Univision deal included multiplatform and on-demand
viewing rights.

Charter Communications

Basic-video subscribers: 4.1 million

High-speed Internet subscribers: 3.7 million

Phone subscribers: 1.8 million

Contact: David Andreski, VP of integrated marketing, (314) 543-5807

Hispanic packages: Latino View (12 to 25 Spanish-language channels in
most markets but as many as 30 Spanish-language channels in California for $5
on top of TV Select, TV Silver and TV Gold video packages.)

Hispanic VOD, HSI and bundles: Will soon be adding new Spanish VOD
content and is revamping its Spanish-language Web site charterlatino.com; offers a triple-play bundle targeted to
Hispanics; has a variety of longdistance calling plans.

Major Hispanic markets: Los Angeles; Fort Worth, Texas; Reno, Nev.; as
well as rapidly growing populations in Tennessee; South Carolina and portions
of Washington, Nebraska and Georgia.

Recent and future plans: Last year added eight channels in California,
which now has around 30 channels in the Hispanic offering and has been
reclaiming bandwidth as the MSO goes all-digital, which will allow them to add
additional channels in the state. Most markets offer 12 to 25 channels, with
plans to add new channels as well. The MSO is also revamping its overall offerings,
with new pricing, packaging, new HD services, more online content and apps for
mobile devices; as part of that effort, is also expanding its ethnic content.

AT&T U-verse TV

TV Basic video subscribers: 4.1 million

High-speed wired Internet subscribers: 16.4 million

Voice: 46.8 million wireline voice connections

Wireless: 105.2 million

Contacts: Jeff Weber, president content and advertising sales, AT&T;
Ryan Smith, executive director of content acquisition, AT&T; Julie Tran,
director of content, AT&T (310) 552-0279.

Hispanic programming packages: All Uverse TV customers have access to
Paquete Español (up to 50 channels for $15 a month on top of any U-verse TV
programming tier); also offers U200 Latino (up to 330 channels, including the
channels in Paquete Español for $82 per month); U300 Latino (up to 410 channel
including Paquete Español for $97 per month); U450 Latino (up to 480 channels
including Paquete Español for $129 per month).

Spanish VOD, high-speed Internet and bundles: U-verse Movies library
offers thousands of hours of free and paid on-demand titles that includes
Spanish-language movies, children's programs, and events; has a variety of
options for bundling U-verse TV Spanish-language packages with U-verse
Internet, U-verse Voice and/or AT&T wireless services; offers low-cost
international calling plans; is adding apps and interactive features for
Hispanic audiences.

Major Hispanic markets: Los Angeles; Houston; Dallas-Fort Worth; San
Antonio, Texas; San Francisco-Oakland-San Jose; Sacramento-Stockton-Modesto,
Calif.; San Diego; Chicago; Miami-Ft. Lauderdale, Fla.; West Palm Beach, Fla.;
Austin, Texas; Fresno, Calif.; Bakersfield, Calif.; Detroit-Ann Arbor, Mich.,
and Atlanta, as well as such markets as El Paso and Corpus Christi, Texas;
Orlando, Fla.; Monterey-Salinas, Calif.; Raleigh- Durham, N.C.; Odessa-Midland,
Texas; and Charlotte, N.C.

Recent and future plans: Over the last year, rolled out its U300 Latino
and U450 Latino packages and earlier this year announced new multi-year,
multi-platform content agreement to deliver Univision content to U-verse TV,
online, smartphones and tablets. The agreement also includes the launch of
Univision's new networks, Univision Deportes, Univision tlnovelas and FOROtv;
in addition to the multiplatform on demand content, the agreement also gives
subscribers access to live feeds of Univision networks in and outside of the
home on multiple devices.

Recent promotions include significant discounts for bundles, with savings of as
much as $36 a month for 24 months with a triple play bundle. Existing mobile
subs also get a $5-per-month discount when they add qualifying U-verse TV
bundles; customers with U300 Latino package or higher get a free wireless
receiver for life.

In addition to expanding its TV and multiplatform Spanish-language offerings
and bundles, the telco has also been focusing on using its IPTV platform to
offer interactive applications for Hispanics. Last year it launched Paquete
Español Multiview, which lets customers choose from up to 53 Spanish-language
channels in the Paquete Español package to watch at the same time, and
developed the Santa Tracker interactive TV app in Spanish, which allows
customers to play various holiday games and track Santa around the globe on
Christmas Eve.

Recently also worked with Disney Channel to launch an interactive channel
designed to highlight the Disney's secondary audio programming (SAP) feature in
Spanish. Available to all customers, the channel features video clips of shows,
trivia, polls, a weekly sweepstakes, a SAP tutorial tab and an "order
now" section for customers interested in more Spanish programming. Also
continues to look for additional HD content and is evaluating its current
lineup, both with an eye towards adding additional channels and swapping out
underperforming services.

Cablevision Systems

Video subscribers: 3.3 million

High-speed Internet subscribers: 3.0 million

Voice lines: 2.4 million

Contact: Paul Strickland, director of video product management, (516)
803-3693, pstrickland@cablevision.com

Hispanic packages: Optimum en Español (includes than 50 Spanish-language
channels, and a Spanish-language VOD service at prices starting at $8.95 a
month for subscribers to Family Cable).

Hispanic VOD, HSI and bundles: More than 150 hours of Spanish-language
VOD programming a month; markets a variety of promotions for video, Internet
and phone; offers flat-rate plans for unlimited local and long-distance calling
within the U.S., Puerto Rico and Canada; also offers Optimum Voice World Call,
which offers up to 250 minutes of calling anywhere in the world, including up
to 30 minutes of calls to Cuba, for $19.95; Spanish-language Web portal for its
Optimum Online Internet service; Optimum App for iPad, iPhone, iPod Touch,
Kindle Fire and laptops allows viewing of live TV anywhere in the home.

Major Hispanic markets: Greater New York City area, including parts of
Brooklyn, the Bronx, parts of New Jersey and Long Island, N.Y.

Recent and future plans: Optimum en Español, along with other
international services, has been carried across Cablevision's footprint since
2006. During the past few years, Cablevison has added a number of new
Spanish-language networks, including ViendoMovies, Vme, Telemicro, Ecuavisa
Internacional, Caracol TV Internacional, WAPA America, Latelenovela Network,
Dominican View, Tele El Salvador, Mundo Fox, Univision Deportes and Univision
tlnovelas; continues to look for ways to enhance its Spanish-language offering.

Bright House Networks

Total customers: 2.5 million

Basic video subscribers: 2,079,000 *

Contact: N/A

Hispanic package: In central Florida markets, offers Nuestros Canales, a
Spanishlanguage tier that features 34 Spanish language video channels, and five
audio, plus Spanish-language VOD for $8 on top of other video tiers.

Hispanic VOD, HSI and bundles: The Florida market offers "Lo Mejor
On Demand," with more than 50 hours of programming from Univision,
Telefutura, Telemundo and others; "Road Runner en Español" high-speed
data service has extensive Spanish-language pages for Hispanic customers;
Hispanic-targeted "Mi Mexico" and "Latin American Call
Plans" are offered in the Florida market.

Major Hispanic markets: The Florida market, including Tampa/St.
Petersburg; Central Florida; and Bakersfield, Calif.

Recent and future plans: Declined to discuss its plans.

* SNL Kagan estimate **
Leichtman Research Group, second quarter, 2012.

Source: Information about packages and plans collected by Multichannel
News
; pricing and packages accurate as of September, 2012.

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