New Hispanic network looks to buy into Vegas market

Tuesday, Oct. 24, 2000 | 11:01 a.m.

Azteca America, the Dallas-based Spanish-language television network that plans next year to compete with two established national networks, wants to buy and operate a Las Vegas TV station.

Steve Alfieris, vice president of investor relations for Azteca America Inc., said his company is in negotiations to buy a station and be on the air by the second quarter of 2001, but he declined to name the seller.

Alfieris said it would be a full-power station, meaning that it could be picked up with an antenna and it would qualify for "must-carry" status on the Cox Communications of Las Vegas cable system. Cox officials said they have not been in contact with Azteca.

"Las Vegas is a very important market for us," said Alfieris. "Even though Las Vegas is only the 53rd largest U.S. designated market area, it's the 25th largest Spanish-speaking (market) in the country."

He said 0.8 percent of the nation's 32.5 million Hispanics live in the Las Vegas area.

If Azteca comes to Las Vegas as planned, it would be somewhat of a homecoming for the company. Azteca is an 80-20 alliance between Pappas Telecasting Cos., which owns 16 television and three radio stations, including a Telemundo-affiliated operation in Reno, and TV Azteca SA, Mexico's No. 2 broadcast company.

Visalia, Calif.-based Pappas Telecasting is run by Harry J. Pappas, president, chief executive officer and principal owner. Pappas began his broadcasting career in radio in the 1960s at KVEG in Las Vegas, where he sold advertising after being trained by his brothers, station owners Mike and Pete Pappas.

Harry Pappas also attended Nevada Southern, the predecessor to UNLV.

Alfieris said Azteca is more interested in expanding Spanish-language programming in the United States than wresting market share away from Univision and Telemundo, the two leaders. The two combined for about $250 million in advertising revenue last year.

Azteca would do that by broadcasting original programming from TV Azteca's Mexican studios.

"Our agreement with TV Azteca (in Mexico) gives us exclusive access to anything they have ever made, are making or will make," Alfieris said.

Alfieris said TV Azteca produces more than 9,500 hours of original programming per year and is the second-largest producer of Spanish-language programming in the world. It produces and distributes novellas, dramas and comedies as well as broadcasts of Mexican soccer games.

Because labor is cheaper in Mexico than in the United States, a Mexico City production costs one-fifth to one-eighth the cost of an American production.

"Our attitude is that the Hispanic market is so bright, there's going to be room for all of us," Alfieris said.