RBR-TVBR exclusive: Sources within the industry tell us Mexicanal–the fifth Hispanic network after Univision, Telemundo, Telefutura and Azteca America—is calling its over-the-air affiliates and asking them to discontinue distribution over any and all local cable systems as of 6/1. Mexicanal President Luis Torres-Bohl tells RBR-TVBR Mexicanal is not asking all affiliates to drop and the agreements between Mexicanal and its distributors–be they satellite, cable or broadcast–are confidential: “We have signed up new broadcast affiliates and we will continue our expansion in that area of the market, as well as cable. Mexicanal and DirecTV have enjoyed long-term relationship, which started in 2005. We are going to announce another cable deal soon.”
This is why: Mexicanal cut a deal with DirecTV to be the exclusive distributor, the source said. DirecTV has also given them a premiere dial position.
Mexicanal is a Mexican based television launched in 2005 by Castalia Communications and Cablecom. It serves Mexicans living and working in the US, Canada and Mexico.
This may be an FTC violation, as it could be deemed restraint of trade. MexiCanal is also potentially stepping on over-the-air affiliates’ contracts with DirecTV.
Hero Broadcasting’s KBEH Ch. 63 in LA is one affiliate that carried Mexicanal on a multicast channel. The station stopped carriage at the end of February.
A Hero Broadcasting source tells us the move is not just about local cable systems. “Castalia [Mexicanal] was leasing the channel from us. But it was DirecTV that said we were in violation of the agreement they have—’you cannot be airing your product on anything but DirecTV.’ So that’s why they will be off–based on my understanding–all of the affiliates. DirecTV’s agreement with Mexicanal says their agreement in place with Mexicanal doesn’t allow them to air anywhere else. And for whatever reason they developed relationships and affiliate agreements with all of the other entities throughout the country. I thought it was a very good format and had a lot of potential for sure here in LA. For us, it happened at the end of February. It was not just cable carriage—it was all carriage other than DirecTV. But they now have less exposure and revenue, etc.”
Torres-Bohl countered by saying: “The decision with Hero Broadcasting was not necessarily because of the DirecTV agreement. Part of it has to do with the DirecTV agreement, but it is the distribution model itself. The distribution model of Mexicanal had to change. That’s basically it. I’m not trying to diminish the importance of DirecTV in the overall equation. Our agreement with Hero was a lot different than it is with the other stations. The reason why the relationship between Hero and Mexicanal ended is also due to a whole bunch of aspects—distribution model, advertising sales and the competitiveness of the Los Angeles market.”
Journal Broadcast Group/Tucson (Mexicanal affiliate KGUN) VP/GM Julie Brinks has not been notified yet, but is checking into this, as Journal carries Mexicanal in three markets.
DirecTV is checking on the details for us from their end, but spokesperson Robert Mercer notes with RBR-TVBR that each affiliate has separate contracts with Mexicanal and would likely have to fulfill that contract before any exclusive carriage deals with DirecTV could be struck.
At this point, DirecTV says their deal with Mexicanal is not exclusive.
For Mexicanal to be successful, it needs to be carried in markets like LA, NYC, Miami, Dallas and Chicago. For example, until Azteca did the deal with Pappas in LA, it was floundering. Now they’re getting some real traction.
Here is the list of Mexicanal affiliates and carriages:
DirecTV Mas package (channel 412).
It airs on these multicast channels:
Los Angeles, CA KBEH-TV 63.3 HERO Broadcasting LLC
Dallas, TX K31GL-D 31.2 Mako Communications
Atlanta, GA WYGA-LD 16.1 Mako Communications
San Antonio, TX WOAI-TV 4.2 High Plains Broadcasting LLC
Phoenix, AZ KTVP-LP 22.2 Mako Communications
Harlingen, TX KGBT-TV 4.2 Barrington Broadcasting Group, LLC
San Diego, CA K61GH 50.1 ICNG
Las Vegas, NV KTNV 13.2 Journal Broadcast Group
Austin, TX KVAT-LD 17.1 Mako Communications
Tucson, AZ KGUN 9.2 Journal Broadcast Group
Columbus, OH WCSN-LD 32.1 Columbus TV, LLC
Palm Springs, CA KMIR-TV 36.2 Journal Communications
Albany, NY WYBN-CD 14.2 Cable Ad Net New York, Inc.
Yakima, WA KWYT-LD 39.2 Hispanavision, LLC
Oklahoma City, OK KOHC-CD 45.3 Sunshine State Television Networks
Reno, NV KELM-LP 43 Ngensolutions LLC
Boise, ID KIVI 6.2 Journal Communications
Twin Falls, ID KMVT 11.4 Neuhoff Family Limited Partnership
RBR-TVBR observation: Viewers—especially underserved audiences—need to be able to get programming over the air, on satellite, on cable and online/smartphones. Sure, DirecTV would like to take on the cable industry, but exclusively signing a network that’s already carried on cable and local affiliates could be a big hit for those affiliates targeted.
