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Nets Face Capacity Limits

By Steve Donohue -- Multichannel News, 10/7/2007 8:00:00 PM

While cable operators are attracting more and more Hispanic subscribers, Spanish-language TV networks shouldn’t expect slots on basic cable, or even digital basic, some distributors said here last Wednesday at a Hispanic Television Summit panel session hosted by Multichannel News and Broadcasting & Cable.

Cablevision Systems director of international strategy and product management James Moore said a new Spanish-language network would have the best chance of landing cable distribution by agreeing to either video-on-demand distribution or a spot on a premium Spanish-language tier.

“When you’re dealing with niche programming, it’s hard to get that programming into the mainstream,” Moore said, explaining that Spanish-language networks are competing for distribution from major HDTV program suppliers such as Discovery Networks and other networks that appeal to both English and non-English speakers.

Other executives said that FCC rules that will force cable operators to carry the every digital signal of local broadcasters will make it even more difficult for Spanish-language networks to obtain wide distribution.

“If they [cable operators] are forced to carry all of the signals, what will happen to capacity in the cable world and the satellite world?” asked Jorge Fiterre, a partner at Spanish-language TV programming distributor Condista.

Hispanics represent a large portion of digital-cable customers, other panelists said.

Horowitz Associates vice president of marketing and business development Adriana Waterston said the firm has found that Spanish-speaking homes have a multichannel penetration rate (including cable and satellite) of 71%.

English-only homes have a 82% multichannel penetration rate, while bilingual homes have a 83% multichannel penetration rate, Waterston said.

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