Case Study- NBC Universal Telemundo

Case Study- NBC Universal Telemundo

Introduction

Telemundo’s market share has been dwindling for specific reasons. This issue was observed among the English and Spanish-language broadcasters. However, the Hispanic market is changing rapidly, which places an urgent demand on Spanish broadcasters such as Telemundo to take immediate action that will improve their competitive advantage. The young viewers are shifting towards online programs and need to be recaptured. This analysis proposes that Telemundo invests in the creation of original Spanish content, which has enormous potential to capture the millennials and other younger generations. Variety and authenticity are important aspects in the successful completion of this process.

Case Facts and the root cause of the problem

NBCUniversal Telemundo’s main challenges included serious competition from internet programming, which appears to have experienced a significant explosion. The second challenge was the total viewership from young market segments was reducing significantly as the younger audience preferred the programming options available on the internet. The explosion of internet programming affected Telemundo’s bilingual and technologically capable market. The reduction of viewership from younger generations was not unique to Telemundo but also affected English broadcasters. These challenges were daunting for Cesar Conde, Telemundo’s chairperson, due to the growth that the Hispanic market was experiencing in terms of size and buying power (McGee, Isabel-Knoop, & Snively, 2017).

The digital disruption contributed to Telemundo’s challenges significantly. All broadcasters considered the internet a significant threat due to the disruption that the market experienced. The migration towards digital platforms was significant. For instance, Latinos spent 12.49 hours watching television online, while non-Hispanics spent an average of 9.44 hours weekly. The new subscription platforms, such as Netflix, were Latinos’ favourites (McGee, Isabel-Knoop, & Snively, 2017; Watson, 2020).

The caution exercised by brand owners as regards advertising in the Spanish language undermined the effectiveness of such digital campaigns. Digital advertising in the Spanish language posted a higher Return on Investment than television advertisements. However, brand owners avoided this route due to the challenges associated with realizing these returns and the need for cultural intelligence to successfully create and execute the advertisements (McGee, Isabel-Knoop, & Snively, 2017).

Furthermore, English-language media attracted more revenue than Spanish-language media did. As marketing officers sought to reduce their budgets significantly and establish efficiencies, the English-language advertisements gained superiority in the market. Some agencies thought that they could just reach the market through English-only advertisements. The Hispanic market was gaining significant biculturalism. However, these advertisers seemed to forget that Spanish advertisements had a cultural significance and were equally powerful, especially with the incorporation of humour and relevance. According to studies, at least 54 per cent of the TV campaigns that were conducted in the Spanish language performed as well or better than the English language campaigns (McGee, Isabel-Knoop, & Snively, 2017).

In addition, the political atmosphere at the time also discouraged the Spanish-language advertisers. The new president Donald Trump had just been elected. The anti-immigration outlook and issues that surrounded the new administration created an unfavourable atmosphere that led to a lack of knowledge. The advertisers were not certain whether it was right to still engage the minority groups at such a time (Watson, 2020). Most of them cancelled campaigns due to this concern (McGee, Isabel-Knoop, & Snively, 2017).

Analysis & Decision Making

Telemundo was certain that the internet was a game-changer for other players in the sector. Due to the decline in cable and satellite advertisements, it is necessary to shift towards the Internet (McGee, Isabel-Knoop, & Snively, 2017). As already established, the younger generation of the Hispanic market is spending more time on the Internet. This means that they can be captured using the same platform. Investing in internet advertising and programming through establishing the necessary infrastructure is critical. This approach will reduce the loss of market share for Telemundo and enable it to compete efficiently with other players.

In addition to investing in internet-based infrastructure, it is necessary that Telemundo creates content that appeals to the Hispanic market. Already, Spanish-language advertisements are experiencing a significant reduction in revenue and quantity. This occurs despite the potential that such content holds to attract and retain the Hispanic market. The English language campaigns are not any better than the Spanish language campaigns. The content should have well-placed humour. In addition to creating such content, Telemundo should also conduct a survey that will help it attain the necessary intelligence. The lack of such intelligence is one of the main reasons that deter marketing officers from creating Spanish content. Without such intelligence, it is impossible to create content that addresses the needs of the market. Therefore, an in-depth survey of the Hispanic market is important to the success of the process.

Telemundo should review its content to determine its appeal to the current market segment as well as other target markets. Every program that Telemundo airs should cater to the needs of certain market segments. The variety should also be rich to allow viewers to make decisions regarding what to watch. The lack of variety is one aspect that drives viewers away from certain platforms towards those that offer more platforms. For instance, Netflix, the subscription-based platform offers a variety of shows in different languages. Viewers can watch documentaries, movies, television shows, and series. This variety is further enriched with the various genres, which address the needs of diverse groups. People of different ages from the Hispanic market can choose without limitations. In 2020, Netflix invested $200 million in creating Mexican content, an amount that may increase in 2021 (Faughnder, 2021). Netflix’s investment in Spain has also been remarkable. Some of the most remarkable Spanish shows include ‘Money Heist,’ a series that attracted international viewers (Faughnder, 2021). This viewership confirms the need for Telemundo to offer its clients variety and authenticity for total entertainment.

Telemundo is among the most recognized networks in the USA that offer Spanish language shows alongside competitors such as Univision. This means that the company has the financial ability to explore the already identified gap. There is a significant lack of original Hispanic content. Its presence provides a breath of fresh air to the industry because viewers are exposed to new characters, which makes the series less predictable and more enjoyable. It, therefore, follows the company should emulate its competitors who are already involved in creating original content for the market. Besides Netflix, Disney also launched Disney+ in November in Latin America. This global company intends to create at least seventy original shows for this region. Warner Media and HBO Max will also invest in the Latin American markets heavily. Univision launched PrendeTV in March, which is accessible without charges, supports advertisements, and allows viewers to stream. In April, Univision also acquired content from Grupo Televisa as well as media assets. The acquisition was valued at $4.8 billion (Faughnder, 2021). The intention is to prepare for the expected competition as different players seek a share of the Hispanic market (Parrot Analytics, 2018). Therefore, Telemundo should invest financial resources in the creation of original content either independently or with other like-minded organizations.

The recommended approaches allow the company to utilize the gap that is presented in the Hispanic market. The potential of original Spanish content is undermined. With this knowledge, Telemundo should strive to ensure that it explores the available options and seeks out new ones that increase its competitive advantage in this market.

Action Planning

Telemundo’s most practical solution is to explore the Hispanic market by offering original content in the Spanish language. To achieve this end appropriately, it is necessary to invest in the production or creation of original content. This should increase the variety of programs that will cater to the viewers’ varying needs. This step requires a comprehensive plan from the marketing and production departments. Due to the need for financial resources, the finance department will also be involved in the plan for accountability and planning.

Plan for original content creation

The implementation of the proposed action plan requires collaboration among various departments. The most common ones include the marketing, production, and finance sections. The process should take a year to complete. Some of the activities, such as production and marketing, can take place concurrently. This will allow Telemundo to create awareness regarding its recent programs gradually and maintain a constant flow of recent programs that meet the identified market needs. The process will require human and financial resources as well as time. Eventually, the marketing and finance departments will analyze the progress by assessing market share growth and revenue changes from the recent programs. This data will inform Telemundo about future actions regarding the creation of original Spanish content.

Measurements

Action plans do not always yield the desired results. To identify this trend early enough, monitoring the progress is necessary. Once the first batch of content is created and marketed, Telemundo will conduct an analysis among its clients to identify their opinions regarding the recent programs. This will provide information for future productions. The quarterly financial reports should provide further information regarding the improvement of financial performance. In case a consistent trend of underperformance is noted, the action plan will be halted for deeper analysis.

Conclusion

The Hispanic market in the USA is untapped as regards the lack of original Spanish content. Telemundo has identified this gap and realizes that it can be utilized for better performance. However, digital disruptions from players such as Netflix continue to pose a challenge because the Hispanic market is embracing the trend due to the variety and authentic content. The Latinos are spending more time online than the other viewers. Therefore, Telemundo needs to create content, develop infrastructure to air these programs, and market to the target groups to compete effectively.

References

Faughnder, R. (2021, May). Spanish-speaking audiences are a huge streaming market. Do media companies understand it? Los Angeles Times.

McGee, H. W., Isabel-Knoop, C., & Snively, C. (2017). NBCUniversal Telemundo: Transforming Latino Television.

Parrot Analytics. (2018). TV Demand for Regional Language Content from US Hispanic and Latin American Audiences Compared.

Watson, A. (2020). Hispanic media in the U.S. – Statistics & Facts. Retrieved from Statista: https://www.statista.com/topics/1270/hispanic-media/#

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Using the information provided in the case as a foundation, develop the analysis using current years and the global environment for your recommendations. 

Note: The paper should not exceed 6 pages (not including the cover page).

Case Study- NBC Universal Telemundo

Introduction: a brief overview of the topic and how you plan to proceed with your discussion.

Case Facts and the root cause of the problem

Identifying and listing relevant case facts

Identifying and describing the root cause of the problem

Identifying and describing the problem components

Analysis & Decision Making

Generating alternatives

Evaluating alternatives

Choosing and supporting alternatives(s)

Action Planning: Describe how you will turn your solution or decision into action, how, when and what.

Measurements: Recommend measures that will evaluate performance.

Conclusion: a summary of the key points of the case analysis.