Regional Publishing International 54
MEXICO
THE BAHAMAS
CUBA
DOM. REP.
JAMAICA
HAITI
HONDURAS
LATIN AMERICA GUATEMALA
NICARAGUA
EL SALVADOR
COSTA RICA
VENEZUELA
GUYANA
Challenges and possible
PANAMA
SURINAME
FRENCH GUIANA
COLOMBIA
ECUADOR
future rewards PERU
BRAZIL
Latin American economies have experienced
BOLIVIA
sustained growth over the past few years. Eco-
nomic forecasts published by respected finan-
PARAGUAY
cial institutions worldwide state these econo-
CHILE
mies are likely to maintain such growth for at ARGENTINA
least as long as richer and stronger economies
remain stable. PricewaterhouseCoopers’ most
URUGUAY
recent Global Entertainment and Media
Outlook points out that Latin America’s en-
tertainment and media market is the second
fastest growing regional market in the world
(behind Asia Pacific). Projections are that the
market is to rise at an 8.9% CAGR to $ 68 bil-
lion in 2011. In the eyes of a foreign publisher
wishing to enter these markets the reality may
however prove to be not as ‘inviting.’
Latin America is a real ‘potpourri’ of back- Media groups wishing to establish themselves Naspers, of South Africa, took a 30% stake in
grounds: Europeans, Africans, Orientals and in these markets must therefore have the abil- Brazil’s Abril Group in May 2006. The recent
different native ethnic groups. The region’s ity and willingness to overcome the above- joint-venture between Televisa and Gruner +
countries therefore have diverse populations, mentioned circumstances. That is why maybe Jahr in Mexico was probably the most impor-
social and economic differences to an extent the majority of large international publishers tant movement observed in Mexico in 2007.
never experienced in richer economies such as have chosen to export their magazines to the This partnership may open up new perspec-
the U.S. or the UK. region (throughout the region foreign maga- tives for both publishers in Latin America,
zines generally account for under 5% of each since they appear to have strategic assets that
In addition to the usual cultural barriers and country’s total magazine market), syndicate complement each other.
lack of human resources to run new editorial content and license their titles, as opposed to In inter-regional action Televisa bought
projects in emerging media markets, Latin sharing risks with a local partner or establish Atlántida of Argentina, publisher amongst
America generally presents newcomers with themselves in their own right. others of Para Ti, Gente and Billiken, in
some regulatory headaches. Policies do vary Lack of investment in infrastructure is another August 2007. Televisa already had a local
from country to country. For instance, set- permanent, and perhaps growing concern for presence publishing Cosmopolitan and Va-
ting up a wholly owned publishing company foreign investors in Latin American countries. nidades. Televisa’s cable TV and internet
in the largest and most attractive print media Power shortages and poor logistics have been company, Cablevision, is also looking at the
market of Latin America, Brazil, is not a pos- identified by local and international special- possibility of entering the markets of Brazil
sibility for international players. Brazilian ists as the top reasons that could lead many and Argentina.
law only allows for 30% participation for a regional economies into chaos in upcoming Grupo Clarin, owner of Latin America’s larg-
foreign investor. Such limitation, however, is few years. est-selling daily newspaper and most popular
not observed in Mexico, where Condé Nast A further challenge for media companies in cable TV network floated 20% of its shares in
established a solely owned magazine publish- Latin American markets is the global trend of London in October 2007. Earlier in the year,
ing business and runs it independently. content fragmentation, migration from print June, Grupo Clarin associated itself with the
Another fact that may steer newcomers away to digital formats and the consequent impact Mexican Multimedios Group to form a book
from Latin America is the region’s depend- on competing revenue streams. It is unclear publisher in Argentina, Ríos de Tinta.
>
ence on the American economy. As history where the distribution of entertainment and
shows without any doubt, a slowdown in the media on convergent platforms will lead mar-
US economic scenario will certainly change kets that have not yet fully developed in mag-
the forecast mentioned above for most, if not azine distribution.
for all, of the Latin American economies. The Perhaps, entering the media markets in Latin
implications for the media and entertainment America with a local, relevant, nationwide
industry would be hard to predict, but the in- multimedia company may offer international
dustry would bear some of the consequences. players more advantages in the near future.
AAU07_2722_Inhalt.indd 54U07_2722_Inhalt.indd 54 008.11.2007 13:51:41 Uhr8.11.2007 13:51:41 Uhr
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