AOL Plans to Expand Univision Partnership to Reach Latino Users
America Online Inc. today is expected to announce an expanded partnership with Univision Communications to attract more Latino users to AOL’s broadband service with news, sports and celebrity clips produced by the Los Angeles-based Spanish-language media giant.
AOL, a unit of AOL Time Warner Inc., also will purchase more commercial spots on Univision’s three television networks, Web site and radio stations as soon as Univision wins approval from the Federal Communications Commission for its $2-billion acquisition of Hispanic Broadcasting Inc., a radio chain headquartered in Dallas.
Financial terms of AOL’s yearlong arrangement with Univision were not disclosed.
AOL is the latest company to turn to Spanish-language media in an effort to reach Latinos, the fastest-growing segment of the U.S. population. More than 4.3 million Latino households have online service, AOL executives said, adding that about 45% of all Latino users subscribe to AOL.
AOL’s foray into Spanish-language media began a year ago with a more limited cross-promotion agreement with Univision, said Mary Ann Donaghy, executive director for AOL’s marketing and development. “This will be a much more collaborative effort,” she said.
Univision will receive more advertising dollars from AOL, which plans in May to launch an aggressive Spanish-language ad campaign, Donaghy said.
In return, AOL will have more clout and presence on the airwaves owned by the nation’s dominant Spanish-language entertainment company. AOL is betting that Univision’s news, sports and entertainment content will help draw more Spanish-speaking Internet subscribers to AOL’s narrowband as well as broadband service.
Javier Saralegui, president of Univision Online, said in a statement that the two companies will provide Latino users of the Internet “access to the best each company has to offer.”
