Six weeks after the launch of subscription streaming service ViX+, TelevisaUnivision CEO Wade Davis already has a compelling case for why the company’s streaming service stands out from competitors.
“We believe we can deliver a profitable streaming service within the first year of operation,” Davis said.
Speaking at the Bank of America Securities 2022 Media, Communications & Entertainment Conference Wednesday, Davis outlined the factors that differentiate ViX+, which launched on July 21, as well as ViX, the company’s free ad-supported streaming service that launched in late March. others.
For starters, TelevisaUnivision has the advantage of a huge library of content thanks to its January 2022 merger with Televisa, which provided most of Univision’s pre-merger content. The content the company produces is vertically integrated and created in low cost locations. Furthermore, TelevisaUnivision is only aimed at Spanish-speaking markets, so it does not need to own the rights to the content in all territories.
“We are not fighting in 186 countries,” he said.
The company’s streaming business “layered” on top of its linear business, which is notably “stable and growing” in the US and Mexico, financing investment in its streaming business, Davis said.
Customer acquisition costs are also lower, Davis argued. The company’s two streaming services aim to reduce churn, as previously paying customers can fall back to the free tier if necessary. The customer base on the free tier also provides a potential customer acquisition pool for the paid service.
In marketing, the other area that Davis notes can reduce margins, the company’s sheer scale means they’re already reaching 125 million Spanish speakers a day in various markets, creating internal promotion opportunities.
TelevisaUnivision differentiates its content by linearly viewing it as “custom and cultural view,” Davis said, which includes traditional novellas, “event-level” sports, reality shows and hookup news. Meanwhile, Vix+ will feature 7,000 hours of football content, such as pre-matches, in hopes of building interest in event-level linear sports. Vix functions more like a basic cable, he said.
Davis, Viacom’s former chief financial officer, took over as CEO of Univision in late 2020, after his investment firm and Searchlight Capital acquired the company. About a year after the acquisition, Univision launched PrendeTV as the first entry into the ad-supported streaming space.
Davis said PrendeTV was a “good pilot program” for the company, as it penetrated streaming further and also allowed the company to build out an advertising base in advance.
As part of PrendeTV, the company has also completed all of its distribution deals, including strengthening the football rights that now provide much of the content for the streaming services.