As part of the race to reach English-speaking Hispanics, Univision and ABC News, a division of The Walt Disney Company, on Monday revealed details about their joint-venture cable channel aimed at second-generation Latinos.
The Miami-based channel, called Fusion, will premiere late this summer and feature 24-hours of news, lifestyle and entertainment programming designed to resonate with Latino viewers. Cablevision, Charter, Cox Communications, AT&T U-Verse and Google Fiber have agreed to distribute the channel to more than 20 million homes nationwide.
The 50-50 jointly owned channel underscores the growing influence of a burgeoning population over media companies, marketers and politicians. In 2010, there were 50.5 million Hispanics living in the United States, up from 35.3 million a decade ago, according to the 2010 census. That number is expected to grow by 167 percent by 2050, compared to an estimated 42 percent growth rate for the total United States population. Latinos voted in record numer in the 2012 presidential election and helped sway the results in Barack Obama’s favor.
“The level of growth of Hispanics in the United States is huge and that growth is not coming from immigration,†said Isaac Lee, the president of Univision News.
In the crowded television landscape, creating a new 24-hour cable channel for a relatively narrow audience is a risky proposition. Studies show English-speaking Latinos watch the same types of programs as non-Hispanics. “This audience identifies as Americans first,†said said Larry Lubin, co-founder and president of Lubin Lawrence Inc., a brand consultancy that advised both companies. He also stressed that the venture needs to broaden its appeal. “The brand will be a failure if it only appeals to Latinos.â€
Univision has rapidly expanded lately to meet growing demand, expanding in the past several years from three channels to 12 channels in 2013, including cable channels devoted to sports and t! elenovela marathons. Fusion represents its first English-language effort.
“This community is exploding from a size and influence perspective, but also from a diversity perspective,†said Cesar Conde, president of Univision Networks. “And we’re going through an explosive period in our evolution.â€
In March 2011, Univision and Disney executives first sat down to discuss a joint venture channel aimed at Latinos. For Univision, Fusion represents a chance for the largest Spanish-language network to break out of its image as the home of imported Mexican soap operas, soccer and variety shows.
Nearly half of all Latinos in the United States speak more or an equal amount of English at home, a shift Univision has had to adapt to. “They watch English shows,†said Mr. Lubin, adding that they might watch Univision “maybe if they’re at their grandmother’s house.â€
For Disney, the cable channel represents a broader corporate effort to appeal to marketers hoping to reach Latino vewers. Nielsen projects the buying power of Hispanics, estimated at $1 trillion in 2010, to grow to $1.5 trillion by 2015. In 2010, advertisers spent $4.3 billion to reach Hispanics, up from 14 percent in 2009, according to the Association of Hispanic Advertising Agencies. : Unlike NBC with MSNBC, ABC doesn’t have a cable news channel.
Univision spearheaded the channel’s programming and staffed its Miami-based headquarters. Disney, which has leverage with cable and satellite providers because of ESPN, handled distributing the channel. A spokeswoman for ABC News said additional distribution deals are in the works and that the existing ones make Fusion available in states with the largest Hispanic populations, including Texas,California, Florida and Illinois.
