EMI AND TELEVISA FORGE MAJOR MUSIC PARTNERSHIP
FOR MEXICO AND US LATIN MARKET
London and Mexico City, 19 July 2005 - EMI, the world's largest independent
music company, and Grupo Televisa, the world's largest Spanish-language media
company, announced today that they are combining their respective strengths in
music, distribution and media to enter into a major new partnership, which will
include the formation of a new joint venture record company in Mexico
("Televisa EMI Music"), and Televisa's participation in EMI's US Latin
operations, effective 1 September ("EMI Televisa Music").
New Joint Venture in Mexico: Televisa EMI Music
Televisa and EMI will establish a new 50/50 joint venture record company,
Televisa EMI Music, which will develop and market music from stars of
Televisa's popular telenovela programmes, such as "Rebelde," "Complices al
Rescate" and other properties, as well as produce TV advertised compilation
albums which will be manufactured and distributed by EMI's current
infrastructure. EMI is contributing to Televisa EMI Music a working capital
facility, as well as licensing various television-advertised compilations and
other artist releases while Televisa will provide a specific portion of
Televisa EMI Music's media support. In addition, Televisa EMI Music will also
pursue deals with and develop recording artists in Mexico, a music market that
the IFPI valued at US$360 million in 2004, up 9% from the prior year.
EMI Music will maintain EMI Music Mexico's existing operations separate from
Televisa EMI Music, whose roster includes top-selling acts such as Aleks
Syntek, RBD, Fey, El Gran Silencio, Plastilina Mosh, and Lucero, but will
participate with Televisa EMI Music in certain specific projects.
Televisa Teams with EMI Music in US Latin Market
In a move aimed at capitalizing on the growing US Latin market, Televisa will
partner in the existing Miami-based EMI Music US Latin operations, which will
be renamed EMI Televisa Music and includes artists such as Thalia, Intocable,
AB Quintanilla & Kumbia Kings, and Vico C, among others. Televisa will
contribute significant media support to artists and products.
Both ventures - Televisa EMI Music in Mexico, and EMI Televisa Music in the
U.S., will be headed by Rodolfo Lopez-Negrete, who is currently Director,
Televisa Music. He will report jointly to Marco Bissi, President and CEO, EMI
Music Latin America, and Javier Prado, General Director of Televisa
EMI Music Chairman & CEO Alain Levy said: "Developing local artists and music
from all regions is central to EMI Music's strategy. By partnering with the
largest media company in the Latin market, we will further develop our already
strong artist base, drive growth and generate significant new revenue streams
in our Latin American and US Latin businesses."
"We are looking forward to combining our knowledge of the music market with
Televisa's experience and direct connection to consumers and powerful reach to
grow our share significantly in the Latin market over the coming years."
Grupo Televisa's Chairman and CEO Emilio Azcarraga Jean said: "Televisa is
delighted to reenter the music business through this partnership with EMI, one
of the biggest record companies in the world. This partnership fits with
Televisa's strategy to look for new opportunities in the US Latin Market and
will enrich Televisa's sources for content while leveraging its different media
Azcarraga Jean continued, "We are looking forward to partnering our resources
with EMI's strength, experience, vast distribution network and infrastructure
in the music business, which will undoubtedly contribute to Televisa's
expansion and consolidation in Latin America."
Latin: Growth Market in US
Televisa and EMI Music enter this deal as EMI demonstrated significantly
improved performance in the Latin region, increasing its overall revenues by 9
percent and growing its market share from 12.3 percent to 15.6 percent in its
fiscal year `04/'05.
Indeed, according to the IFPI, the overall Latin American music market valued
at more than US$903 million in 2004, is coming off two consecutive years of
growth, with the trend expected to continue this year.
In addition, according to the RIAA, Latin music in the U.S. also surged in 2004
with total Latin Music shipments to U.S. retail increasing by 25.6% -- 48.5
million units in 2004 compared to 38.6 million the year prior; representing a
total dollar value of US$650M.
EMI and Televisa have entered into an agreement, which provides that, in
certain specific circumstances, (i) in the case of Televisa EMI Music, either
party will have the right to acquire the other party's interest in Televisa EMI
Music in accordance with an agreed formula, and (ii) in the case of EMI
Televisa Music, Televisa may require EMI to purchase or EMI may require
Televisa to sell their rights to Televisa's participation in the US venture.
These ventures are subject to any applicable regulatory clearances.
Grupo Televisa, S.A. is the largest media company in the Spanish-speaking
world, and a major participant in the international entertainment business. It
has interests in television production and broadcasting, production of pay
television networks, international distribution of television programming,
direct-to-home satellite services, publishing and publishing distribution,
cable television, radio production and broadcasting, professional sports and
live entertainment, feature film production and distribution, and the operation
of a horizontal Internet portal. Grupo Televisa also owns an unconsolidated
equity stake in Univision, the leading Spanish-language media company in the
About EMI Music
EMI Music is a division of London Stock Exchange-listed EMI Group plc. EMI
Music operates directly in 50 countries with licensing agreements in a further
20, representing more than 1,000 artists spanning all musical tastes and
genres. Major-selling local artists in the Latin American market over the last
twelve months have included Thalia, Intocable, Marisa Monte, Charlie Brown,
RBD, Tiziano Ferro, Amaral, AB Quintanilla & Kumbia Kings, Aleks Syntek,
Ricardo Montaner, Los Nocheros, Fey and Bebe, among others.
For EMI, contact:
Jeanne Meyer Corporate Communications EMI New York +1.212.786.8850
Amanda Conroy Corporate Communications EMI London +44.20.7795.7529
Adam Grossberg Corporate Communications EMI New York +1.212.786.8855
Claudia Palmer Investor Relations EMI London +44.20.7795.7635
Susie Bell Investor Relations EMI London +44.20.7795.7971
For Televisa, contact:
Manuel Compean Corporate Communications Grupo Televisa +52.55.5728.3815
Michel Boyance Investor Relations Grupo Televisa +52.55.5261.2445
Alejandro Eguiluz Investor Relations Grupo Televisa +52.55.5261.2445