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NBC launching new Telemundo San Diego O&O

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Well, I have been speculating about it for months, but today while doing some job searching, I came across an opening for a Finance Coordinator position at Telemundo San Diego. The name caught me by surprise since the local Telemundo affiliate brands as Telemundo 33. Anyways, here is a bit of the job announcement:

 

NBCUniversal is launching a new Telemundo-owned station in San Diego. This is an exciting project that will expand NBC 7 / KNSD’s news staff with a new team of Spanish-speaking and bilingual journalists to launch the new station. Both news teams will serve local Spanish- and English-speaking viewers. The new Telemundo station team will work closely with KNSD team members in NBC 7’s new state-of-the-art facility in Kearny Mesa, California.

This move is not surprising for many reasons. Last year KNSD moved into a larger facility that houses two studios, and a larger, open newsroom. Also, Comcast has been very aggressive in promoting the NBC/Telemundo synergy.

 

I'm assuming that they'll park the new Telemundo station on one of KNSD's subchannels. Also, no word when the new station will start up.

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You'd think this would be a huge blow to XHAS, but I wouldn't be surprised if Entravision simply parked the Univision affiliation there...I foresee musical chairs amongst the U.S. Spanish nets in S.D.

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Entravision already owns the Univision station in SD/TJ, KBNT. What would be the point of them moving Univision to XHAS?

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Entravision already owns the Univision station in SD/TJ, KBNT. What would be the point of them moving Univision to XHAS?

 

Full power signal? Though from how Eat News tells it, Univision might end up on XETV.

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Full power signal? Though from how Eat News tells it, Univision might end up on XETV.

 

If that's the case, who would get The CW? I think Univision will stay on KBNT while I think NBC is buying XHAS so that it can have its own Telemundo station plus change call letters.

 

I don't know if that could be true, but it's a less than likely scenario.

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Entravision operates XHAS, so since they don't own the station, makes no sense to move the Univision affiliation. Also, as Crackedscreen alluded to, Eat News has been hinting at some major changes that are being rumored in regards to XETV/Univision. If anything, this Telemundo change is a nail in the coffin for Entravision. This change is actually beneficial for the viewers as Comcast will pump more resources into the operation than Entravision ever did with XHAS.

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Entravision is actually not in good shape. It has been progressively cutting back news at some of its stations, particularly in fringe time slots. This is worrisome even though Entravision as a whole has precious few Telemundo outlets (ZGS and now Serestar, the latter headed by a former exec at Entravision, fill Entravision's role at Telemundo).

 

As to XHAS itself, I don't know what it's going to do. Would Entravision want to operate a local independent? Perhaps bring in Multimedios, which while farfetched-sounding does own a radio station in this market? This is the biggest change there since 1990 when they were pretty much shagged out of the Televisa stable.

 

As to the relationship of Entravision to its Mexican trio...

 

-The relationships are very long term. There's a 10-K from 2012 that mentions the XHDTV, XHAS and XHRIO arrangements go to 2030, 2035 and 2038 respectively. Any breakup is costly, too.

 

-Entravision all but owns the stations' concessions. The concessionaires - Televisora Alco, Tele Nacional and TVNorte, respectively - are all owned by one Jorge Alonso Coratella (who also happens to be the president of the Order of Malta in Mexico) and based in Tijuana (even TVNorte, S. de R.L. de C.V., which in at least one letter to the INE that I ran across had its mailing address at the XHAS studios). (Notice the name of Televisora Alco - ALonso COratella.)

 

On these, the Entravision 10K from 2012 has a little more information:

 

We operate each of XDTV-TV, serving the Tecate/San Diego market; XHAS-TV, serving the Tijuana/San Diego market; and XHRIO-TV, serving the Matamoros/ Harlingen-Weslaco-Brownsville-McAllen market, under long-term time brokerage agreements. Under those agreements, in combination with certain of our Mexican affiliates and subsidiaries, we provide the programming and related services available on these stations, but the stations retain absolute control of the content and other broadcast issues. These long-term time brokerage agreements expire in 2030, 2035 and 2038, respectively, and each provides for automatic, perpetual 30-year renewals unless both parties consent to termination. Each of these agreements provides for substantial financial penalties should the other party attempt to terminate prior to its expiration without our consent, and they do not limit the availability of specific performance as a remedy for any such attempted early termination.

 

Now, could NBC buy XHAS? The answer is actually yes. They could even own a portion of the station if they wanted to. Mexican law since 2014 permits foreign investment in broadcast stations with the approval of the National Foreign Investments Commission. The way it works is reciprocal: a foreign entity can own a percentage of a Mexican station equivalent to that permitted in their home country for a foreign entity, up to 49 percent (an American entity might be limited to 20 or 25 percent under the complicated FCC foreign ownership statutes). The remaining stake must be owned by Mexicans.

 

However, such an operation would have to go through a bunch of red tape, particularly in Mexico, and carries with it a bunch of political considerations (particularly these days).

 

It's a bit ironic since NBC/Telemundo has flirted with Mexico in the past. In the 90s, it kinda grew close to TV Azteca. In 2005, GE Mexico attempted to loan $5 million to keep XHTVM Mexico City (which was on the verge of a crippling strike) afloat and was actually told it could not because foreign ownership of any kind was forbidden.

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Univision itself is in tough shape, increasingly reliant on Televisa for its livelihood.

 

The one thing is that aside from XETV, there's really no home for Univision on a Televisa station in Tijuana.

 

The Televisa "economic interest group" includes four stations in TJ:

 

XETV

XEWT

XHBJ

XHUAA

 

XHUAA is the Las Estrellas repeater and has been since it came to air in 1990. XHBJ is a local partner of Televisa with some Gala TV programs but it's owned separately (by Cadena Baja California), maintains its own facilities, etc.; Televisa almost owned XHBJ outright, which is a tangent but I'll have to get to that at some point. XEWT is entrenched as the local station in Tijuana.

 

XETV multiplexes Canal 5 (and did so years before Televisa began doing the same in other areas of the country without C5), so Tijuana is at least guaranteed national network service.

 

Blowing up XETV is an odd decision. Televisa has a good amount of studio infrastructure in SD. But losing Fox in 2008 probably did something to its investment. But it's also a unit of Televisa that conducts its business in dollars, not pesos. Given the fact that the peso is continually sinking to historic lows, dollarized costs on the books either are very good or very bad depending on the revenue-generating status of XETV.

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If that's the case [univision moving to XETV], who would get The CW? I think Univision will stay on KBNT while I think NBC is buying XHAS so that it can have its own Telemundo station plus change call letters.

 

I don't know if that could be true, but it's a less than likely scenario.

 

If such a scenario were to occur, The CW would probably end up on KUSI (did somebody say San Diego's CW9?). While they are a news-intensive indie, they tried to steal Fox from XETV back in the 2000's before Fox moved to KSWB, so they have flirted with the idea of having a network affiliation.

 

As far as what NBCU will do with Telemundo San Diego, I really have no idea which direction they will take it. Anything is fair game with NBCU especially after what just happened in Boston.

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Entravision is actually not in good shape. It has been progressively cutting back news at some of its stations, particularly in fringe time slots. This is worrisome even though Entravision as a whole has precious few Telemundo outlets (ZGS and now Serestar, the latter headed by a former exec at Entravision, fill Entravision's role at Telemundo).

 

As to XHAS itself, I don't know what it's going to do. Would Entravision want to operate a local independent? Perhaps bring in Multimedios, which while farfetched-sounding does own a radio station in this market? This is the biggest change there since 1990 when they were pretty much shagged out of the Televisa stable.

 

As to the relationship of Entravision to its Mexican trio...

 

-The relationships are very long term. There's a 10-K from 2012 that mentions the XHDTV, XHAS and XHRIO arrangements go to 2030, 2035 and 2038 respectively. Any breakup is costly, too.

 

-Entravision all but owns the stations' concessions. The concessionaires - Televisora Alco, Tele Nacional and TVNorte, respectively - are all owned by one Jorge Alonso Coratella (who also happens to be the president of the Order of Malta in Mexico) and based in Tijuana (even TVNorte, S. de R.L. de C.V., which in at least one letter to the INE that I ran across had its mailing address at the XHAS studios). (Notice the name of Televisora Alco - ALonso COratella.)

 

On these, the Entravision 10K from 2012 has a little more information:

 

 

 

Now, could NBC buy XHAS? The answer is actually yes. They could even own a portion of the station if they wanted to. Mexican law since 2014 permits foreign investment in broadcast stations with the approval of the National Foreign Investments Commission. The way it works is reciprocal: a foreign entity can own a percentage of a Mexican station equivalent to that permitted in their home country for a foreign entity, up to 49 percent (an American entity might be limited to 20 or 25 percent under the complicated FCC foreign ownership statutes). The remaining stake must be owned by Mexicans.

 

However, such an operation would have to go through a bunch of red tape, particularly in Mexico, and carries with it a bunch of political considerations (particularly these days).

 

It's a bit ironic since NBC/Telemundo has flirted with Mexico in the past. In the 90s, it kinda grew close to TV Azteca. In 2005, GE Mexico attempted to loan $5 million to keep XHTVM Mexico City (which was on the verge of a crippling strike) afloat and was actually told it could not because foreign ownership of any kind was forbidden.

Spot on Raymie. Very good analysis.

 

I will say that Televisa is in for a big surprise. Telemundo San Diego will give Univision a run for its money now that Comcast is behind it. The only way for Televisa/Univision to be successful is if they match or exceed the resources that is put into Telemundo SD-dollar for dollar. Otherwise, they're screwed, especially given the woes at Univision.

 

Also, Entravision sort of combined operations from San Diego/Imperial County/Palm Springs/Yuma. They do a regional newscast at 11pm, originating from San Diego.

 

And I wonder if this FINALLY means that KNSD will get it's own chopper back...

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I will say that Televisa is in for a big surprise. Telemundo San Diego will give Univision a run for its money now that Comcast is behind it. The only way for Televisa/Univision to be successful is if they match or exceed the resources that is put into Telemundo SD-dollar for dollar. Otherwise, they're screwed, especially given the woes at Univision.

 

It's not all roses at Televisa either; they're planning somewhere between 1,200 and 2,000 layoffs (I've seen both numbers). There was some news today there, too, as the Univision head of news and digital Randy Lee now also is the Chief Content Officer for both Televisa and Univision.

 

The XHTVM situation was particularly bonkers, in tune with the station's first 10 or 11 years which are some of the most turbulent in history for a major market TV station. Indeed, they were impeded from continuing with the loan because...

 

Televisión Azteca filed a lawsuit in Mexico City court against Televisora del Valle de México (TVM), its attorney Javier Quijano, and General Electric México (GE), for fraud at the expense of other creditors.

 

"We presume there is some sort of hidden agreement among the parties...financing for 53 million pesos is something we consider absolutely undue, because TVM does not have sufficient assets to respond," wrote TV Azteca lawyer Alfonso Jiménez O'Farril.

 

He added that through the financing, owner Javier Moreno Valle is attempting to guarantee rights to the commercialization and programming of Canal 40. In the filing ... [Azteca] warns that GE has as its goal to illegally participate in the Mexican media business.

 

"If the information that has appeared in the press is correct, the secret operation or the legal trick is set up so that Telemundo, subsidiary of GE, despite the express legal provisions that prevent foreigners from participating in activities reserved for Mexicans, can take control and operate [Canal 40], whose concession is held by TVM ... with resources from its related company, GE México," the case states.

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It's not all roses at Televisa either; they're planning somewhere between 1,200 and 2,000 layoffs (I've seen both numbers). There was some news today there, too, as the Univision head of news and digital Randy Lee now also is the Chief Content Officer for both Televisa and Univision.

 

The XHTVM situation was particularly bonkers, in tune with the station's first 10 or 11 years which are some of the most turbulent in history for a major market TV station. Indeed, they were impeded from continuing with the loan because...

Oh no doubt. The starts started coming down last year when they let go of their [higher priced], long-tenured talent at the network level. Now supposedly, both Univision and Televisa's news operations will be separate, but everything else is fair game for consolidation...as much as possible. That being said, Televisa does spend--when it wants to, so it's not out of the question that they could pour in resources into Univision/O&O's if they need them.

 

The funny thing about all of this, is that at the beginning of the day, Entravision had two good assets here, and at the end of the day, they may be left with nothing. Funny how that works. Would Entravision try and snag the CW away, just to grasp at straws, or do they fold up shop here in town, and move out?

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If such a scenario were to occur, The CW would probably end up on KUSI (did somebody say San Diego's CW9?). While they are a news-intensive indie, they tried to steal Fox from XETV back in the 2000's before Fox moved to KSWB, so they have flirted with the idea of having a network affiliation.

 

As far as what NBCU will do with Telemundo San Diego, I really have no idea which direction they will take it. Anything is fair game with NBCU especially after what just happened in Boston.

Rumors were that Tribune had turned down FOX first, then the suits reluctantly went to McKinnon/KUSI to see if they were interested in taking the FOX affiliation, before Sam Zell/Tribune found out and called FOX to ask about the offer. McKinnon and FOX have had a testy relationship over the years, if i'm not mistaken.

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Well, I have been speculating about it for months, but today while doing some job searching, I came across an opening for a Finance Coordinator position at Telemundo San Diego. The name caught me by surprise since the local Telemundo affiliate brands as Telemundo 33. Anyways, here is a bit of the job announcement:

 

NBCUniversal is launching a new Telemundo-owned station in San Diego. This is an exciting project that will expand NBC 7 / KNSD’s news staff with a new team of Spanish-speaking and bilingual journalists to launch the new station. Both news teams will serve local Spanish- and English-speaking viewers. The new Telemundo station team will work closely with KNSD team members in NBC 7’s new state-of-the-art facility in Kearny Mesa, California.

This move is not surprising for many reasons. Last year KNSD moved into a larger facility that houses two studios, and a larger, open newsroom. Also, Comcast has been very aggressive in promoting the NBC/Telemundo synergy.

 

I'm assuming that they'll park the new Telemundo station on one of KNSD's subchannels. Also, no word when the new station will start up.

 

First off....

Nice catch A3N.

 

Second off...

No matter what anyone else thinks or say's ....

 

Every scenario mentioned here in the last few hours is entirely possible and doable in minimal time, with very minimal regulatory hassle.

 

Remember this market supports a ton of news departments, cross border stations and heavy local ownership.

 

Plus we just had an NFL team make a fatal business error in a soon to be very pro-business environment.

 

Things are about to start clicking.

 

Does the new XETV ND speak Spanish?

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First off....

Nice catch A3N.

 

Second off...

No matter what anyone else thinks or say's ....

 

Every scenario mentioned here in the last few hours is entirely possible and doable in minimal time, with very minimal regulatory hassle.

 

Remember this market supports a ton of news departments, cross border stations and heavy local ownership.

 

Plus we just had an NFL team make a fatal business error in a soon to be very pro-business environment.

 

Things are about to start clicking.

 

Does the new XETV ND speak Spanish?

 

The infrastructure for Telemundo SD is there, they just need to build it up a bit. I'm assuming they're looking to launch within the next 6 months or so? Does anyone know when XHAS affiliation contract runs out?

 

I'm just amazed that this market is able to support this many news departments. Comcast must have seen something ($$?) that made them pull the trigger and get the Telemundo affiliation in SD in-house.

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The infrastructure for Telemundo SD is there, they just need to build it up a bit. I'm assuming they're looking to launch within the next 6 months or so? Does anyone know when XHAS affiliation contract runs out?

 

I'm just amazed that this market is able to support this many news departments. Comcast must have seen something ($$?) that made them pull the trigger and get the Telemundo affiliation in SD in-house.

 

The 10K says June. The affiliation agreement has two other unusual clauses: "The affiliation agreement grants Telemundo a right of first refusal in the event a third party makes an offer to purchase XHAS-TV, and a right to purchase XHAS-TV upon a change of control of Entravision."

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The 10K says June. The affiliation agreement has two other unusual clauses: "The affiliation agreement grants Telemundo a right of first refusal in the event a third party makes an offer to purchase XHAS-TV, and a right to purchase XHAS-TV upon a change of control of Entravision."

Damn. That's right around the corner. I don't see any movement on them trying to buy up any station-- full/low power in the market to park Telemundo there, so is there enough bandwidth on KNSD's channel to handle NBC/COZI/Telemundo/Telexitos?

 

I'm no expert on the technical aspects of television, but there is a few low powered stations in town they could try and snatch up: KSDY-LD and KSEX-CD. Don't know how well their reach is, but given that the market is heavily cable penetrated, it might not make that much of a difference.

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Given what just happened in Boston, low power seems like a reasonable M.O. for NBCU, especially with the high cable penetration stats. And KSEX does have a history with KNSD (Mi San Diego)...though, ironically, that ended because of limited availability.

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Given what just happened in Boston, low power seems like a reasonable M.O. for NBCU, especially with the high cable penetration stats. And KSEX does have a history with KNSD (Mi San Diego)...though, ironically, that ended because of limited availability.

 

Ok that is very reasonable..

But if the LP route is considered you have to take into account the geographic square mileage of the DMA (4,200sqm) and the cross border dynamic that may apply in most considerations.

 

I'm all along the lines of network synergy from TJ all the way to LA for both Univision/ Televisa and NBC/Telemundo.

That's this years holy grail (goal) for entire Socal TV.

 

Lock down Socal Hispanic viewership and save a ton on expenses.

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Ok that is very reasonable..

But if the LP route is considered you have to take into account the geographic square mileage of the DMA (4,200sqm) and the cross border dynamic that may apply in most considerations.

 

I'm all along the lines of network synergy from TJ all the way to LA for both Univision/ Televisa and NBC/Telemundo.

That's this years holy grail (goal) for entire Socal TV.

 

Lock down Socal Hispanic viewership and save a ton on expenses.

Most SD stations are available on cable on the other side of the border. I know Cablemas carries them in Tijuana/Ensenada. Also, COX has channel 14 available (used to be occupied by KTLA), and has been for several years. Would be a good idea to get the new TSD placed as close to the other locals as possible.

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Well, that didn't take long. CW to KFMB (subchannel) Sept. 1st.

 

And that probably means the end of XETV's (English) news operation. Not that I'm surprised; six English news departments is too much for any market, especially San Diego. On the other hand, KFMB will probably come out with a new 10:00 newscast for that channel.

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