Televisa & Telemundo join forces.

NBC Universal’s Telemundo and Grupo Televisa, S.A.B entered into a strategic alliance agreement to distribute Telemundo content in Mexico across multiple platforms including broadcast TV, PayTV and emerging digital platforms. The deal was announced by Jeff Zucker, President and Chief Executive Officer, NBC Universal; Don Browne, President, Telemundo Communications Group; and Alfonso de Angoitia, Executive Vice President, Grupo Televisa. Financial terms were not disclosed.

Beginning in April, Televisa’s Channel 9 will broadcast more than 1,000 hours a year of Telemundo’s original programming. This 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 2 million households at launch. The license agreements for Televisa’s Channel 9 and the new PayTV channel will have an initial term of 10 years, respectively.

Televisa and Telemundo also expect to sign agreements to distribute Telemundo’s content in Mexico through emerging platforms including Internet, mobile phones, home video and VOD.

Mr. de Angoitia said: “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. We look forward to building a solid relationship with NBC Universal and Telemundo and are excited about the opportunities our companies can realize in Mexico working together.”

Mr. Zucker added: “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. ”

“This deal is a great affirmation of Telemundo’s success in producing high quality original content,” said Mr. Browne. “This landmark agreement is another milestone in our long-term objective to reach Hispanic audiences all over the world with our high-quality original productions. With this new distribution platform in Mexico, we will also benefit from cross-border dynamics, with families and friends coming together around their shared interest in popular programs which will now reach both Mexican and U.S. Hispanic audiences.”