Summary
The concentration and proportionate dearth of US Hispanic media outlets make it an easy buy for advertisers and creates a real value builder for investors.
Analysis
US Hiispanic market media is poised to experience dramatic revenue growth over the next 2 to 5 years as a result of the soon to be taken and released US Census.
The Census will put into black and white numbers that will officially document the incredible Hispanic population growth which has changed the faces of this country's largest cities and has permeated to many smaller ones.
The signs of the US Hispanic market being a real, tangible and not to be ignored market are everywhere.
As the Adweek article point spouts, while general market broadcasters continue to battle audience erosion, Univision, the country's No. 1 Spanish language media company, posted a 5 percent gain last season. The company owns the most watched single American TV station among adults 18-49 regardless of language -- KMEX-TV in Los Angeles. Univision also said last season it was consistently within the top five broadcast networks in the U.S., and on many nights it was within the top three.
And speaking of numbers in black and white, it is amazing to see that while general broadcast networks posted a 22 percent decline in the last upfront, Univision posted a 3 percent gain to $1.24 billion. In categories like quick service restaurants, Univision posted a 25 percent gain, while consumer packaged goods rose 20 percent according to the Adweek article
Of note to investors are two major issues.
The first is that all US Hispanic market media, television, radio, print and even new media and mobile are highly concentrated within very defined ownership and that there is a proportionately lower number of traditional, new and mobile media outlets to reach US Hispanics, e.g. Univision's two free to air networks, its cable net, the largest Spanish language radio station group and the leading internet portal; Impremedia's ownership of Spanish language newspapers and web site in virtually every large US Hispanic market and so on.
The second is the dichotomy for potential value appreciation for investors both as regards existing media entities and new entries into this highly concentrated media market.
