August 03, 2004
Univision's Head Gringo In Charge
The forthcoming Business Week features an intriguing profile on Univision's head honcho, the enigmatic Jerry Perenchio. The guy may be media-averse, with a ruthless reputation, but you can't fault his business instincts:
- In an era of publicity-courting media moguls such as Rupert Murdoch and Sumner M. Redstone, the self-possessed Andrew Jerrold Perenchio quietly runs what may be one of the more valuable pieces of media real estate in the business. Univision Communications Inc. (UVN ), with two broadcast networks, a cable channel, a radio network, and three music labels, is the biggest player in the fast-growing Hispanic market, which today includes one in every seven Americans. Perenchio made an early bet on what seemed like a niche market by buying five TV stations and a struggling Hispanic network. Today that niche has exploded into a demographic phenomenon: Univision draws more young viewers in prime time than MTV and more men than ESPN, according to Nielsen. And in Hispanic-rich markets such as Los Angeles, Miami, and Phoenix, it often beats English-language rivals to snare the younger viewers advertisers crave.
While Perenchio refused to be interviewed for the article (no surprise there), the piece does offer some fascinating insights into the way he rules Univision -- which is also indicative of Univision's reputation and public persona (hint: no one likes 'em very much, but advertisers can't afford not to deal with the #1 Spanish-language network in the nation if they want to reach the Hispanic market).
- For all of Univision's success, though, few folks really know what's on Perenchio's mind. Perhaps more than any other media company, Univision reflects the secretive, often combative personality of its boss. The onetime college boxer was well into his 60s when he wrestled a business partner on a snowy sidewalk outside a Manhattan restaurant over who got to pick up the check. At Univision, Perenchio rules with a 20-point manifesto that demands that employees think big, avoid mistakes, practice teamwork, and "hire people smarter and better than you." The No. 1 rule: "Stay clear of the press. Stay out of the spotlight. It fades your suit. Only promote the brands."
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In building Univision over the past 12 years, however, Perenchio hasn't always been so genteel. Univision executives, say those who deal with them, push advertisers to pay hefty rates and have tried unsuccessfully to require them to buy ads on the two-year-old Telefutura network and Galavision cable channel along with Univision spots. "They went at it very aggressively and it ruffled a lot of feathers," says Jessica Pantanini, vice-president of media-buying firm Bromley Interlink, which spends $60 million a year on Univision. The company declined comment.
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Univision's hardball tactics extend to just about everyone the company does business with, say several sources. In 2000, the company withstood a 32-day hunger strike by employees at its Fresno TV station, who claimed they were paid less than their English-speaking counterparts. But starving workers were too much of a black eye even for Perenchio. Univision eventually increased the employees' pay. Today, the company, which says about 10% of its 4,300 employees are unionized, is negotiating with the unions at its New York and Los Angeles stations. "They're probably one of the worst employers we ever have to deal with," says Dan Mahoney, assistant to the president of the National Association of Broadcast Employees & Technicians.
As I've said before, Univision's autocratic corporate style and personality starts at the top. It's amazing how adept their rank-and-file managers are in adopting their leader's traits.
Click here for the whole unvarnished thing. Spotted at the invaluable L.A. Observed.