DOW JONES NEWSWIRES
Dish Network Corp. (DISH) and Time Warner Cable Inc. (TWC) each
reached multiyear agreements to deliver Univision Communications
Inc.'s Spanish-language programming, a niche that has shown viewer
growth in the U.S. despite a broader decline in television
viewership.
Dish, the nation's second-largest satellite-TV provider behind
DirecTV Group Inc. (DTV), said its agreement on Wednesday would
distribute Univision, Telefutura and Galavision to its network
customers.
Dish faces escalating pressure to devise a new survival strategy
in the face of tough competition not only from DirecTV but also
from cable providers and local-phone companies also offering
television service.
Earlier Wednesday, Univision entered a program agreement with
Time Warner Cable to distribute the three networks and, in certain
markets, carriage of affiliated stations owned and operated by
Entravision Communications Corp. (EVC) and Equity Media Holdings
Corp.
In addition, Univision will join with Time Warner to deliver
enhanced video services including Start Over and Look back, as well
as extensive video on demand and broadband offerings.
Terms of Univision's agreements with Dish and Time Warner Cable
weren't disclosed.
Time Warner Cable, the nation's second-largest cable operator
behind Comcast Corp. (CMCSA), noted that Hispanics represent a
growth opportunity for distributors.
The distribution agreements comes as the Univision Television
Network reported audience growth of 5% in March among adults
between the ages of 18 to 49, reaching more than two million
viewers. In comparison, the company said the average audience of
the five largest English-language networks declined by 3%.
Univision said the network has bucked the trend of viewer
erosion and has one of the youngest broadcasting audiences in
primetime.
The positive television results were announced two days after
Univision reported its fourth-quarter net loss widened on $2.25
billion on write-downs and other charges, as television and radio
revenue fell.
Univision has been hurt by an advertising slump that has
affected nearly all media companies, and is struggling to make
payments on nearly $10 billion of debt, as cash flow falls
precipitously and cash on hand declines. Much of the debt came from
the company's $12.3 billion leveraged buyout to a consortium of
private investors.
Dish's shares were even in after-hours trading at $11.54, while
Time Warner Cable's shares remained at $24.57.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com