Telemundo’s recent success with the “La Reina del Sur” soap opera is a turning point in its long standing original production strategy. As well, rapidly developing plans in the new and mobile media sectors, a focus on content amortization in international markets, the buoyancy of the 2010 Census figures and particularly a focus on the YLA (Young Latino in America) segment of the market, may be early predictors of Comcast’s likely ability to unlock huge value in NBCUniversal.
The Comcast acquisition of NBCUniversal, including the Telemundo and mun2 units, represents a transformation from primarily a content distributor to a leading content producer and is likely very accretive.
The challenge for Comcast is to now unlock value through a combination of organic growth, strategic initiatives and effective execution, depending on the condition and business life cycle stage of the individual NBCUniversal unit.
As Comcast’s top management has repeatedly told the investment community, the play to unlock value is based principally on content creativity.
Telemundo’s recent success with the “La Reina del Sur” soap opera is a turning point in its long standing original production strategy. This and other existing and potential options, may be early predictors of the overall value Comcast can and will likely unlock from NBCUniversal.
NBCUniversal’s going forward management team has a proven ability to effectively and efficiently brand, produce, promote and distribute content across multiple platforms and garner revenues with deliberate energy and an uncanny synergy.
Specifically, Telemundo has some very key next level strategy options which include:
1. Streamlining its present content production capabilities, costs and returns and maximizing audience flow.
2. Maximizing revenues, content enhancement opportunities and co-production opportunities in international markets and balancing program genres to maximize gross audience levels, as well as key demographics, with always each at profitable levels.
3. Positioning and to the extent possible balancing the content and appeal of the “minority owned” cable channels promised to the FCC and maximizing reach, penetration and efficiencies afforded by Comcast’s plethora of channels.
4. Expanding its capacity to amortize content in new, mobile media and audio platforms with NBCUniversal, Comcast and other in place distributors.
5. Defining and owning the YLA (Young Latino in America) demographic to maximize revenue and position itself within this generally untapped market, along with maximizing the marked positive advertising revenue effects of the 2010 Census figures.
Hence, Telemundo, presently a relatively small unit in the overall Comcast NBCUniversal corporate structure, may be a bellwether as to Comcast’s challenge and ability to unlock value beyond the initial $30 billion transaction valuation.