Group Research Collaboration: Media Flows and Expansion of Telecommunications Corporations beyond the Latin America Region

As South American countries begin to invest global, privately owned conglomerates have been at the forefront of economic growth. In 1997, Argentina’s cable television network became so large it had to restructure its payment system to be able to continue offering over 65 channels (Paxman). One of the driving forces of this change was Grupo Clarin’s move towards becoming a global company. Grupo Clarin is a privately owned conglomerate of various media outputs with most of its revenue coming from its television shows. Its cable subsidiary is Latin America’s largest; single multiple system operators with 1.3 million subscribers. Historically, Clarin has avoided overseas partnerships for years and preferred supporting local alliances. However, in 1997 Clarin joined other mega telenovela exporters Televisa, Venevision and RCTV in opening a sales office in Miami (Paxman).

Furthermore, the telenovela has become Latin America’s most sought after international media export with investors from Asia to Europe taking note of its growing popularity. One particular example of its international significance is seen through the Colombian-produced telenovela Betty la Fea. The author of "Latino soaps go global" states, “When India's Sony Entertainment Television (SET) adapted the popular Colombian telenovela, Betty la Fea into its own Hindi language version, titled “Jassi Jaissi Koi Nahin”, ratings for the timeslot increased over 200%”. Noticing similar trends in both Latin America and in the U.S. on the Telemundo network, CEO of the Venevision channel in Venezuela points to its success stating, "Telenovelas have been able to grow outside their core markets because they are extremely effective for programmers in guaranteeing consistent numbers for an extended period of time". With such profitable international markets and relatively easy programming, La
tin America has become a major player in exporting locally produced media products.

In Venezuela, the impeding government crisis can be one of the reasons Grupo Cisneros has decided to take their investments global. Grupo Cisneros has been making its moves away from Venezuela and Venevision into satellite phone service and the world of telecommunications. In addition to this, pay-tv ventures that include partnerships with companies like Direct TV, Hearst, and Playboy entertainment can be considered the extension of the South American media empire (Burnett and Conde, 25).

In Nicaragua, television users are exposed to ‘transnational level programming’ with 60% from Mexico and 15% from the United States. The rest comes from neighboring Latin American countries, providing media such as telenovelas and sports on ‘transnational-global level’ (Aguilar, 2005). In addition, programming such as “CNN,” Hollywood movies, and other foreign media can also be viewed in Nicaragua. Recently, Latin American producers and distributors have prepared arrangements with U.S. satellite and cable services to offer and have available more channels and content. Furthermore, U.S. companies such as TNT and HBO have modified their shows to be more compatible with Latin America. However, even though 93% of Nicaraguan homes have a television, only 4% have cable due to the expense (Aguilar). This lack of media technology has a negative effect on foreign countries trying to influence or gain profit through television within the country.

Articles:

Paxman, Andrew. “The Global 50”. SPECIAL REPORT: Variety 92nd Anniversary Issue; Pg. 45

"Latino soaps go global. " Television Business International 1 Jan. 2004: ProQuest Central, ProQuest. Web. 9 Nov. 2010.
Link: http://proquest.umi.com/pqdweb?did=813923411&sid=17&Fmt=3&clientId=9269&RQT=309&VName=PQD

Burnett, Kate, and Pablo Conde. "Media's Feared and Revered - Kate Burnett and Pablo Conde Profile Four of the Biggest and most Powerful Media Owners." Campaign March 21 2003: 25. Print.

Aguilar, Jorge A. “Viewing America: A Qualitative Analysis on How Nicaraguan Citizens Perceive U.S. Lifestyle and How U.S, Television Programming Influences Those Perspective”. 2005.
Link: http://etd.fcla.edu/UF/UFE0010825/aguilar_j.pdf