My 2003 Upfront Diary …… David Flynn Huerta / Amistad Media Group..Part II

834am. It looks like a good turnout as I pick a seat toward the back. The show begins with a storm theme: pulsing lights, thunder and falling rain SFX. Luis Echarte, president and CEO of Azteca America (now referred to, in abbreviation, as AzA) comes out in yellow rain gear. Oh, no. A theme. He establishes that AzA is taking America by storm (get it), and takes a shot at Univision (they cancelled their upfront, he jokes).

Then he feeds us a diet of need-to-know stuff about the network, its 40 share in Mexico, how they changed the industry there, and pledges two new stations per month. He is brief, and introduces Ricardo Salinas Pliego, Chairman of TV Azteca, the big cacique.

Pliego opens with a few lawyer jokes, and then launches into the similarity of the US and Mexico launches of Azteca: facing a large monopoly with content, power, relationships, and distribution whose hallmark is low customer service. Hallmark, that’s funny. Why am I the only one laughing?

He calls AzA a “marginal investment” for Television Azteca. The Mexican company has spent around $150 million “marginal” dollars on this venture. I’m reminded of the Godfather where Sollozzo comes asking Don Corleone for $1 million to finance a heroin smuggling venture. Corleone shrugs off the $1million as if it were nothing. Te salut, don Corleone.

More from Salinas. “We invented flexibility,” he claims as Azteca is a fully integrated player that can adapt and react faster than the monopoly. I wonder if he’s heard of Telemundo?

Then, in a nice touch, he switches from his perfect English to Spanish, “desde arriba hasta abajo hablamos español. Lets see the other network chiefs try this.”

Promises from Salinas: compelling content, programming with value and attitude competing head to head with Univision and that Azteca has writers producers, artists, and guts to go square against the monopoly. Pretty brash stuff from the fledgling network. His brashness and chip-on-the-shoulder attitude is diffused when he finishes with a request for us (the advertiser/agency community) to support them in reaching their goals. (Hmmm.)

920am. Phil Woodie, President of Sales for AzA takes the stage and presents, at long last, some numbers. This is great because we are 40 minutes into the presentation and haven’t seen anything substantive. Woodie shows us 60% coverage of the network today, 70% in two months and 83% in six months. Still, I wonder about some of these stations really covering their markets.

EF, PA, PT ratings doubled (no demo cited, so I assume it’s HHs) from July 02 to Feb 03, which is pretty good. He shows us a 4.3 rating in prime for A1849, which is decent. I chuckle as I think back to NBC’s 4.5 in primetime as the number one rating. Here these guys are getting a 4.3 in Hispanic TV and they are fighting for attention.

Phil tells us that Nielsen’s analysis shows that AzA viewers are younger, like Telefutura, employed (that’s nice), more bilingual, and have a higher income. Yes, they are UPSCALE. Fortunately he does not take that any further. But AzA has other dead horses to beat.

What follows is Mario San Roman the COO of TV Azteca. He shows us something new called the Azteca Program Planning Process Grid. My mind is boggled. He talks about it this process for about 20 seconds before going to the next slide. The only thing I take away from the slide is the reference to EBITDA and wonder what this accounting term has to do with programming.

His next chart proclaims that, in their novelas, focus groups decide who they are going to kill. (I’m not killing everybody, just my enemies.” -Michael Corleone). In case we aren’t understanding these charts, which I’m not, he pulls out a martini shaker, some ice (the creative idea), then pours in some blue liquid (I am not sure if that represents the production team or the focus group), and pours it into a big martini glass. Am I the only one wondering where’s the gin? Maybe the focus group killed it.

On to community programs with a PSA Vive Sin Drogas which met with sincere applause from the audience. Some information on Jugetón, a toy drive in Mexico, and a great network image spot under the Hispanic Pride Campaign umbrella that received an award. (Highlights a middle-aged guatemalteco couple who came to this country with nothing, and built up four supermarkets in the Las Vegas market. I am a sucker for those kinds of success stories.)

Then the Azteca image campaign promo which took the Aztec-painted-faces theme to new heights, was very artsy, and very very long.

Then, at long last, something about programming. Each program is described by the stars of the show reading a canned speech in either English or Spanish, depending on language skills. Most were charming, and you have to appreciate that they traveled all the way to NY to make their quick little presentation. In sum:

Cada Mañana in the morning. Upbeat news magazine type show with a very Mexican flavor. They sell sponsorships and product integration.

Con Sello de Mujer. Runs early afternoon. Lots of segments including one that breaks down, in a critical fashion, the clothes that celebs wear. Cooking, health, fashion, the usual. They sell sponsorships and product integration.

Tempranito which is celebrity gossip, I think. They sell sponsorships and product mentions.

Sexos en Guerra, a game show pitting men against women. They sell sponsorships and product mentions.

Interviews with the rich and famous on Con un Nudo en la Garganta. They sell sponsorships and product mentions.

Ventaneando, hosted by the Mexican broadcast icon Pati Chapon is an entertainment show. I’m pretty sure you can get a sponsorship or product mention. Pati gets a brief little homage by the COO, kind of like Jeffrey’s homage of Jane Pauley.

On to news and case studies. The room is very hot, so I take an early exit to the foyer. I come back for a live feed from la fábrica de novelas (great name) at Azteca’s Mexico City studios. I didn’t really get the point of this, unless it was to showcase their technology. Also an emotionally rendered song by the star of Enamórate, a new novela. This performance didn’t quite fit the mood and setting.

My takeaway on this is mixed. While I welcome the competition, and the flexibility of this network, I wonder if their willingness to sell everything will dilute the impact of the advertiser’s statement. Literally every program has a product integration component. Also, the head to head challenge to Univision is fascinating. Ever watch kids in a school yard when a new kid challenges the biggest kid in the class? They can’t wait to see what happens. But what about Telemundo?

Also, next year, they have to do something about the speeches.

SWAG: Cruz Azul soccer jersey (very cool), and a fully inflated soccer ball (cool, but cumbersome).

Fox Sports en Español…………………………………….

1210pm. Switching gears over Fox Sports en Español (FSE) upfront, check in at Noche, a trendy nightclub at the north end of Times Square, was quick and easy. I received a name tag and a small key. There is a small jazz combo jammed into the foyer, with the musician’s instruments literally missing knees and elbows by inches.

On stage, Tom Maney, Sr. VP of Sales explains that the keys we have been given at the entrance will open one of three lockers with a chance to go to the World Series all expenses paid. (Mine renders bubkus.)

After lunch, Sr. VP and GM David Sternberg, a gringo, launches into a Spanish introduction. Kudos for giving it a go in Spanish, tinged with an Argentine accent even. Anyway, he welcomes the crowd (we’re packed in tight on both floors of the club nocturno) and outlines the FSE success story: outstanding ratings, increased subscriber base, and quality sports programs. (We’ll have to take his word on this, because GRPs are not being served.)

But their coverage goals are lofty and, if they reach them, interesting: 3 million Hispanic subs by 2004. That will make them a playah for sure. But they have a long way to go on the programming/ratings front. Still, anyone shopping for a male demo will be looking at them closely and be thankful they are around.

Back to Maney, who takes an oblique shot at AzA with a product integration reference. Some premier properties include Diario Fox Sports, a Mexican-produced show for the US Hispanic market that airs nightly, and the upcoming Premios Fox Sports, an annual event highlighting the achievements of the Latino athlete. A great idea, maybe they’ll have a Latino baseball triple crown. You know, highest batting average, most home runs, and most RBI. Maybe I’ll suggest it.

Their 1200 hours of live sports fronts the FSE “Complete Media and Marketing Solution.” The CMMS includes a online connection with Terra.com, consumer promotions, virtual signage (which looks really cool) and (get this) PRODUCT PLACEMENT. Were shown a product placement and integration promo at this point, which is annoyingly loud.

Maney finishes with a list of thank yous that rivals an Oscar® acceptance speech and promises great things, including ratings.

SWAG: A FSE stadium blanket

continued in Part III