Televisa Losing Telmex, Telcel Accounts Because of Ad Rate Hikes
Billionaire Carlos Slim, who owns Telmex and mobile operator Telcel, says he will not advertise on Mexico's top network this year.
All is not well in the land of oligarchs.
Televisa Executive VP Alfonso de Angoitia said on a Friday conference call that companies owned by Mexican billionaire Carlos Slim -- the world's richest man -- will not advertise with Mexico's top network this year.
Ad sales from Slim's businesses, which include fixed-line phone carrier Telmex and mobile operator Telcel, accounted for nearly 4% of Televisa's broadcast revenue last year, meaning Televisa stands to lose at least $70 million.
A Slim spokesman, who wasn't available for comment on Friday, told the Wall Street Journal earlier this week that Slim's group of companies pulled their advertising because of Televisa's new ad rate hikes.
It may be about the prices hikes, or it could be about the recent feuding between the Slim empire and Televisa.
Televisa recently filed a complaint with the Federal Competition Commission claiming Slim had injected a significant amount of money into upstart satcaster Dish Mexico. If proven true, it would be considered an illegal investment as Slim is prohibited from entering the television market due to Telmex's market dominance in the telecom industry.
Telmex responded to the accusations saying it only handles billing and marketing services for Dish and has had "no participation, neither directly nor indirectly, in Dish Mexico's capital."
Televisa, which dominates both broadcast and pay TV in Mexico, has lost numerous clients to Dish Mexico in recent years. Televisa-owned Sky Mexico was operating as the nation's sole satellite TV operator before Dish entered the market in 2009. Televisa was forced to lower its pay TV prices after the more affordable Dish came onto the scene.
Telmex, which has the infrastructure and deep pockets to challenge Televisa as a major rival in the television business, isn't ruling out an investment in Dish should the opportunity arise.
"In the future, we could participate in a joint investment with Dish Mexico in case it is approved by the corresponding authorities," Telmex said in a company statement this week.