Hemisphere Media Group, Inc. operates as a U.S. Spanish-language media company.
The company serves the fast growing and highly attractive U.S. Hispanic and Latin American markets with a premium Spanish-language streaming platform distributed in the United States of America, five Spanish-language cable television networks distributed in the United States of America, and two Spanish-language cable television networks distributed in Latin America.
The company targets the fast growing and highly a...
Hemisphere Media Group, Inc. operates as a U.S. Spanish-language media company.
The company serves the fast growing and highly attractive U.S. Hispanic and Latin American markets with a premium Spanish-language streaming platform distributed in the United States of America, five Spanish-language cable television networks distributed in the United States of America, and two Spanish-language cable television networks distributed in Latin America.
The company targets the fast growing and highly attractive U.S. Hispanic and Latin America markets. On March 31, 2021, the company acquired the remaining 75% equity interest in Pantaya, LLC, and its subsidiaries (Pantaya). Pantaya is the number one Spanish-language streaming platform in the United States of America by subscribers, with close to one million subscribers as of December 31, 2021. Pantaya targets a large, untapped addressable over-the-top (OTT) market for the U.S. Hispanic viewers, offering content directly to viewers on smart phones, connected TVs and other internet-enabled devices. Pantaya has the number one grossing Spanish-language entertainment app for both Android and iOS for entertainment apps in the United States of America (United States or U.S). Pantaya has been the most downloaded Android entertainment app in Puerto Rico since June 1, 2021.
Pantaya: The first ever premium subscription streaming service of Spanish-language media offering the largest selection of current and classic, commercial-free blockbusters and exclusive rights to critically acclaimed movies and series from Latin America and the U.S., including original productions and titles from the company’s library, as well as titles from third party producers. The company formed Pantaya in partnership with Lionsgate and launched the service in August 2017 with a 25% equity interest. On March 31, 2021, the company acquired the remaining 75% equity interest from Lionsgate, and Pantaya is a wholly-owned consolidated subsidiary of the company. As of December 31, 2021, Pantaya had close to one million subscribers.
Cine Latino, Inc. (Cinelatino): The leading Spanish-language cable movie network with approximately 3.4 million subscribers in the U.S. and 13.7 million subscribers across Latin America and Canada. Cinelatino is programmed with a lineup featuring the best contemporary films and original television series from Mexico, Latin America, and the United States of America. Driven by the strength of its programming and distribution, Cinelatino is the highest rated Spanish-language original movie network in the U.S.
Televicentro of Puerto Rico, LLC (WAPA): The leading broadcast television network and television content producer in Puerto Rico. WAPA is Puerto Rico’s news leader and the largest local producer of news and entertainment programming, producing over 71 hours in the aggregate each week. Additionally, the company operates WAPA.TV, a leading news and entertainment website in Puerto Rico, as well as mobile apps, featuring content produced by WAPA.
WAPA Deportes: Through its multicast signal, WAPA distributes WAPA Deportes (a sports television network in Puerto Rico operated by WAPA), a leading sports television network in Puerto Rico, featuring Major League Baseball (MLB), National Basketball Association (NBA) and professional sporting events from Puerto Rico.
WAPA America, Inc. (WAPA America): A cable television network serving primarily Puerto Ricans and other Caribbean Hispanics living in the U.S. WAPA America’s programming features news and entertainment programming produced by WAPA. WAPA America is distributed in the U.S. to approximately 3.3 million subscribers, excluding digital basic subscribers.
Pasiones: A cable television network dedicated to showcasing the most popular telenovelas and serialized dramas, distributed in the U.S. and Latin America. Pasiones features top-rated telenovelas from Latin America, Turkey, India, and South Korea (dubbed into Spanish); and is the highest rated telenovela cable television network in primetime. Pasiones has approximately 3.7 million subscribers in the U.S. and 15.4 million subscribers in Latin America.
Centroamerica TV: A cable television network targeting Central Americans living in the U.S., the third largest U.S. Hispanic group and the fastest growing segment of the U.S. Hispanic population. Centroamerica TV features the most popular news and entertainment from Central America, as well as soccer programming from the top professional soccer leagues in the region. Centroamerica TV is distributed in the U.S. to approximately 3.2 million subscribers.
Television Dominicana: A cable television network targeting Dominicans living in the U.S., the fourth largest U.S. Hispanic national group. Television Dominicana airs the most popular news and entertainment programs from the Dominican Republic, as well as the Dominican Republic professional baseball league, featuring current and former players from MLB. Television Dominicana is distributed in the U.S. to approximately 2.2 million subscribers.
Snap Media: A distributor of content to broadcast and cable television networks and over-the-top, subscription video-on-demand (SVOD) and advertising video-on-demand (AVOD) platforms in Latin America. On November 26, 2018, the company acquired a 75% interest in Snap Media, and in connection with the acquisition, Snap Media entered into a joint venture with Mar Vista Entertainment, LLC (MarVista), an independent entertainment studio and a shareholder of Snap Global, LLC (Snap Media), to produce original movies and series. Snap Media is responsible for the distribution of content owned and/or controlled by the company’s Networks (WAPA, WAPA Deportes, WAPA America, Cinelatino, Pasiones, Centroamerica TV and Television Dominicana), as well as content to be produced by the production joint venture between Snap Media and MarVista. On July 15, 2021, the company entered into an omnibus agreement, pursuant to which, minority shareholders relinquished the 25% non-controlling interest in Snap Media, at which point Snap Media became a wholly owned subsidiary of the company.
Canal 1: The company owns a 40% interest in Canal 1 in partnership with leading producers of news and entertainment content in Colombia. The partnership was awarded a 10-year renewable broadcast television concession in 2016. The partnership began operating Canal 1 on May 1, 2017 and launched a new programming lineup on August 14, 2017. The concession is due to expire on April 30, 2037 and is renewable for an additional 20-year period.
REMEZCLA: A digital media company targeting English-speaking and bilingual U.S. Hispanic millennials through innovative content. On April 28, 2017, the company acquired a 25.5% interest in REMEZCLA.
The company’s platforms allow many viewers in the U.S. to feel connected with their home countries, including high quality, differentiated local news, sports and premium entertainment content. For instance, WAPA America is the only nightly newscast from Puerto Rico created for the U.S. Hispanics, which is a part of the network's over 71 hours of weekly original news and entertainment programming. Additionally, Pasiones remains the highest rated telenovela cable network in primetime to offer unique and popular telenovelas from around the globe. Pantaya furthers the company’s deep and broad reach among the U.S. Hispanic population, as the leading premium subscription Spanish-language streaming platform to cater to this highly attractive demographic. By focusing on these specific Hispanic markets, the company provides targeted, attractive and relevant content.
WAPA is distributed by all pay-TV distributors (collectively to satellite systems, telephone companies (telcos), and cable multiple system operators (MSOs), the MSO’s affiliated regional or individual cable systems and where applicable, app distribution platforms) in Puerto Rico and has been successfully growing subscriber revenue. WAPA's primetime household rating for the year ended December 31, 2021, was nearly four times higher than the most highly rated English-language the U.S. broadcast network in the U.S., CBS, and higher than the combined ratings of CBS, NBC, ABC, FOX and the CW.
WAPA America, Cinelatino (Cine Latino, Inc.), Pasiones, Centroamerica TV and Television Dominicana occupy a valuable and unique position, as they are among the small group of Hispanic cable networks to have achieved broad distribution in the U.S. The company expects WAPA America, Cinelatino and Pasiones to launch on YouTube TV in the first half of 2022, further accelerating the breadth of their distribution. The company’s U.S. cable networks are well-positioned to benefit from growth in both the growing national advertising spend targeted at the highly sought-after the U.S. Hispanic cable television audience, and growth in the U.S. Hispanic population, which is expected to continue its long-term upward trajectory.
Strategy
The company’s strategy in the U.S. is to provide unique programming focused on the large and rapidly growing U.S. Hispanic population, including super serving those segments often overlooked by its competitors.
The key elements of the company’s strategy include growing subscriber revenue; investing in content for Pantaya and its Networks to drive subscriber growth and build viewership; driving growth in advertising sales; developing and expanding content licensing revenue; and continuing to look for attractive opportunities that are complementary and accretive to its existing business. The company’s strategy in Latin America is to make similar strides as its networks in the U.S. Additionally, Canal 1 represents one of only three national broadcast television networks in Colombia, the second largest Latin American advertising market (excluding Brazil).
Networks and Joint Ventures
Pantaya
Pantaya is a premier Spanish-language streaming service. Pantaya targets the growing U.S. Hispanic audience and offers a unique premium selection of blockbuster and critically acclaimed current theatrical releases and exclusive original series unavailable anywhere else. Pantaya owns or controls the rights for many films, including the most popular recent movie releases from Mexico, and its library includes 17 of the 20 highest-grossing Mexican films since 2019. In March 2021, the company acquired the remaining 75% equity interest in Pantaya from Lionsgate that the company did not already own.
Pantaya also has an in-house production studio, Pantelion, which has accounted for many of Pantaya’s hit programming. Pantaya has output deals with the top three film distributors in Mexico. As of December 31, 2021, Pantaya had close to one million subscribers. In 2021, Pantaya continued to grow as the #1 destination for original premium movies and series in Spanish, its website, Pantaya.com, generated over 55.2 million pageviews with an average 1.1 million monthly unique visitors.
WAPA
WAPA is a full-power independent broadcast television network. WAPA was founded as the second broadcast television network in the Caribbean and the third in Latin America. WAPA occupies a prime channel position (channel 4) together with its full power repeater stations, WTIN in Ponce and WNJX in Mayagüez. WAPA is also distributed by all cable, satellite and telecommunication service providers in Puerto Rico. WAPA has been the #1-rated broadcast television network in Puerto Rico since the start of Nielsen Media Research (Nielsen) audience measurement twelve years ago.
WAPA is Puerto Rico’s news leader and the largest local producer of entertainment programming, producing over 71 hours in the aggregate each week. In addition to having Puerto Rico’s most watched news programming, WAPA’s top-rated local shows include El Cuarto Poder, an investigative news program featuring Puerto Rican journalist Jay Fonseca, and Guerreros, an unscripted competition show. WAPA also licenses and televises blockbuster Hollywood movies and top-rated U.S. television series and telenovelas from around the globe dubbed into Spanish. This diverse and unique mix of programming has made WAPA the market leader in Puerto Rico.
WAPA owns a 66,500 square foot building, which houses its state-of-the-art production facilities, television studios, and administrative offices. All of WAPA’s news and most of its local programs are produced at WAPA’s production facility.
In 2008, WAPA launched WAPA.TV (a news and entertainment website in Puerto Rico operated by WAPA), which is one of the most visited local sites in Puerto Rico. WAPA.TV provides up-to-the-minute news and weather, promotional clips of WAPA’s most popular shows, additional video content not seen on WAPA, and a platform for viewers to share comments and interact, driving further audience engagement. In 2021, WAPA.TV’s mobile-optimized website and apps generated a total of 248 million page views and an average of 1.9 million monthly unique visitors.
WAPA Deportes
In 2009, WAPA launched WAPA Deportes in Puerto Rico through its multicast signal and carriage by all cable, satellite and telecommunications service providers in Puerto Rico. WAPA Deportes broadcasts various local and U.S. sports programming, including Major League Baseball, with exclusive television rights to the World Series and the All-Star Game, NBA and Puerto Rico’s professional men’s basketball league, Baloncesto Superior Nacional. WAPA Deportes is the leading local sports network in Puerto Rico.
WAPA America
WAPA America is a Spanish-language cable television network targeting viewers from Puerto Rico, as well as the Dominican Republic, Cuba, Venezuela and Colombia (collectively referred to as Caribbean Hispanics), who reside in the U.S. Caribbean Hispanics are the second largest U.S. Hispanic population segment, representing approximately 20% of the U.S. Hispanic population. WAPA America is distributed by all major U.S. cable, satellite and telecommunication operators to approximately 3.3 million subscribers, excluding digital basic subscribers. WAPA America televises the top-rated news and entertainment programming produced by WAPA. WAPA America supplements its programming with acquired telenovelas and cultural programming, popular sports programming from Puerto Rico and other programming from WAPA’s library.
WAPA America is primarily distributed on Hispanic programming packages, which generally consist of 20 or more channels, such as Cinelatino, Pasiones (HMTV Pasiones US, LLC and HMTV Pasiones LatAm, LLC), Centroamerica TV (HMTV Centroamerica TV, LLC), Television Dominicana, CNN en Español, Discovery en Español, History en Español, ESPN Deportes and Fox Deportes (together, Hispanic Programming Packages). WAPA America is also distributed in more highly penetrated packages in the major markets of Orlando and Tampa.
Cine Latino, Inc. (Cinelatino)
Cinelatino is the leading Spanish-language cable movie network with more than 17.1 million subscribers across the U.S., Latin America and Canada. Cinelatino is programmed with a lineup featuring what is to be the best contemporary films and original television series from Mexico, Latin America, and the U.S.
The company’s programming strategy for Cinelatino is specifically intended to provide the audience with the broadest selection of the most popular and highest-quality films across all popular genres, from Mexico and all other Latin American geographies that have significant populations in the U.S., including Puerto Rico, the Dominican Republic, Colombia and Peru. Consistent with its programming strategy, Cinelatino has licensed the rights to many of the highest grossing box office films in Mexico. Cinelatino has an expansive library of over 700 of the best Spanish-language titles from suppliers across the globe. In July 2015, Cinelatino introduced advertising on its network. Driven by the strength of its programming and distribution, Cinelatino is the highest rated Spanish-language original movie network in the U.S. Additionally, leveraging its expansive content library, which includes theatrical films, made-for-television movies, series and other content acquired or licensed from third party suppliers, as well as its own original productions, Cinelatino licenses content to over-the-top services in the U.S. and Latin America.
Cinelatino has two feeds of its service, one that is distributed in the U.S. and a second that is distributed throughout Latin America and Canada. Cinelatino is distributed by all major U.S. cable, satellite and telecommunications operators on Hispanic Programming Packages; and has over 3.4 million U.S. subscribers.
Cinelatino is also distributed by many Latin American pay television distributors, generally on basic video packages; and has approximately 13.7 million subscribers throughout Latin America. Cinelatino is distributed to approximately 26% of all pay-TV subscribers throughout Latin America (excluding Brazil), representing a growth opportunity.
Pasiones
Pasiones focuses on one of the most popular program genres among Hispanics, telenovelas. The network sets itself apart by showcasing telenovelas produced in Latin America, Turkey, India, South Korea and other countries (dubbed into Spanish), in contrast to competitor networks, such as Univision TLNnovelas, which focus almost exclusively on Mexican telenovelas. This diverse programming strategy made Pasiones the highest rated telenovela cable television network in primetime in 2021. In owning both Pasiones and Cinelatino, the company provides content in two of the most popular genres with Hispanics, telenovelas and movies.
Pasiones has two feeds of its service, one that is distributed in the U.S. and a second that is distributed throughout Latin America. Pasiones is distributed by all major U.S. cable, satellite and telecommunications operators on Hispanic Programming Packages and has approximately 3.7 million U.S. subscribers.
Pasiones is also distributed by many Latin American pay television distributors, generally on basic video packages, and has approximately 15.4 million subscribers throughout Latin America. Pasiones is distributed to approximately 29% of total pay-TV subscribers throughout Latin America (excluding Brazil), representing a growth opportunity.
HMTV Centroamerica TV, LLC (Centroamerica TV)
Centroamerica TV is the leading network targeting the more than 6.3 million Central Americans living in the U.S. Central Americans are the third largest U.S. Hispanic population group. Centroamerica TV features news and entertainment programming from leading television broadcast networks in El Salvador, Honduras, Costa Rica, Guatemala, and Panama, as well as exclusive soccer programming from the top professional leagues in the region. Centroamerica TV has approximately 3.2 million subscribers in the U.S. and is distributed on Hispanic Programming Packages.
HMTV TV Dominicana, LLC (Television Dominicana)
Television Dominicana is the leading network targeting the more than 2.6 million Dominicans living in the U.S. Dominicans are the fourth largest U.S. Hispanic national group and have grown by 240% from 2000 to 2022. Television Dominicana airs news and entertainment programming from leading content producers in the Dominican Republic, as well as the Dominican Republic professional baseball league featuring players from MLB. Television Dominicana has approximately 2.2 million subscribers in the U.S. and is distributed on Hispanic Programming Packages.
Snap Media
On November 26, 2018, the company acquired a 75% interest in Snap Media. Snap Media is a distributor of content to broadcast and cable television networks and over-the-top, subscription video-on-demand and AVOD platforms in Latin America. In connection with the acquisition, Snap Media entered into a joint venture with MarVista, an independent entertainment studio and a shareholder of Snap Media, to produce original movies and series. Snap Media is responsible for the distribution of content owned and/or controlled by its networks, as well as content to be produced by the production joint venture between Snap Media and MarVista. On July 15, 2021, the company entered into an omnibus agreement, pursuant to which, minority shareholders relinquished the 25% non-controlling interest in Snap Media, at which point Snap Media became a wholly owned subsidiary of the company.
Joint Ventures/Investments
On November 30, 2016, the company, in partnership with Colombian content producers, Radio Television Interamericana S.A., Compania de Medios de Informacion S.A.S. and NTC Nacional de Television y Comunicaciones S.A., were awarded a ten (10) year renewable television broadcast concession license for Canal 1 in Colombia. Canal 1 is one of only three national broadcast television networks in Colombia. The partnership began operating Canal 1 on May 1, 2017. In July 2019, the Colombian government enacted legislation resulting in the extension of the concession license for an additional ten years for no additional consideration. The concession is due to expire on April 30, 2037 and is renewable for an additional 20-year period. Canal 1 is the #3-rated broadcast television network in Colombia. As of December 31, 2021, the company owned a 40% interest in the joint venture, which is deemed a Variable Interest Entity (VIE) that is accounted for under the equity method.
On April 28, 2017, the company acquired a 25.5% interest in Remezcla, LLC (REMEZCLA), a digital media company targeting English speaking and bilingual U.S. Hispanic millennials through innovative content. The investment is accounted for under the equity method.
On November 26, 2018, Snap Media acquired a 50% interest in Snap JV, LLC (Snap JV), a joint venture with MarVista, to co-produce original movies and series. The investment is deemed a VIE that is accounted for under the equity method.
Competition
Pantaya has numerous competitors who offer subscription streaming services, including Netflix, Discovery, Viacom, Disney, Amazon, and AT&T. WAPA Deportes competes for viewership, advertising sales and programming with other channels offering similar sports programming in Puerto Rico. Competitors include the U.S.-based cable networks, such as ESPN, TNT, and TBS. WAPA.TV, WAPA's mobile-optimized website, directly competes with other local news, weather and entertainment sites for traffic and advertising sales. WAPA's main competitor is the Puerto Rican Telemundo affiliate. To some extent, WAPA.TV also competes with search engines and social networks, such as Google and Facebook, for digital advertising revenue.
Intellectual Property
The protection of the company’s Networks' and Pantaya's brands and content is of primary importance to its success.
Government Regulation
The company’s Networks are subject to regulation by the Federal Communications Commission (FCC) under the Communications Act of 1934, as amended (Communications Act). Under authority of the Communications Act, the Federal Communications Commission, among other things, assigns frequency bands for broadcast stations, including the WAPA stations, and other uses; determines the location, frequency and operating power of stations; grants permits and licenses to construct and operate television stations on particular frequencies; issues, revokes, modifies and renews television broadcast station licenses; regulates equipment used by stations; determines whether to approve changes in ownership or control of station licenses; and adopts and implements regulations and policies which directly or indirectly affect the ownership, operations and profitability of broadcasting stations.
The Federal Communications Commission has also adopted various rules that regulate the content of programming broadcast by television stations, including the WAPA station, and carried by cable networks, including the company’s Cable Networks (Networks with the exception of WAPA and WAPA Deportes).
Rules and policies of the Federal Communications Commission and other federal agencies regulate certain programming practices and other areas affecting the business or operations of broadcast stations, including WAPA, and cable networks, including the company’s the U.S. Networks.
Internet services, including PANTAYA.COM, WAPA.TV, CINELATINO.COM, TVPASIONES.COM, CENTROAMERICATV.TV, TELEVISIONDOMINICANA.TV and SNAPTV.TV, are subject to a number of laws and regulations relating to consumer protection, information security, data protection and privacy. The company’s Internet services are also subject to regulation in the U.S. relating to the privacy and security of personally identifiable user information and acquisition of personal information from children under 13, including the federal Child Online Privacy Protection Act (COPPA) and the federal Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM). In addition, a majority of states have enacted laws that impose data security and security breach obligations.
History
Hemisphere Media Group, Inc. was founded in 2013. The company was incorporated in Delaware in 2013.
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