In a move designed to capitalize on the burgeoning American Latino market by offering more diverse programming, Univision says it will set up its own in-house production studio in Miami where it will begin producing original content, including scripted and reality television.
"This is the natural extension and natural evolution of our programming," said Cesar Conde, president of Univision Networks.
For years, Univision has had a deep and quite profitable relationship with Mexico's Grupo Televisa who was responsible for producing some of Univision's most successful telenovela programming.
However, in recent years and with the explosion of Latinos in America, content providers are recognizing that this new market has its own unique culture and now plans to directly target it with specific programming that would speak to the American Latino.
Univision has hired Luis Fernandez, a 30-year veteran with experience in the U.S. market, to be president of its new studio. Fernandez is the former head of Spain's largest broadcaster, Corporacion Radio Television Española .
This new venture is not without risks as many Wall Street insiders wonder how Univision, who is carrying almost 10 billion in debt from a leveraged buyout, will adjust to the loss of its most lucrative programming. Conde, however, shrugged off critics.
"It is worth noting that this is one of our biggest priorities and we will put in the blood, sweat and corporate resources that are needed to make sure this is a success," Conde said.
